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Tips and Resources for Running Businesses in Ontario

Tips and Resources for Running Businesses in Ontario

7
Apr 2020
12
May 2026

The business landscape is always evolving. In the last few weeks, the situation for many businesses in Ontario has changed drastically. You may be wondering where you can turn to find support in these challenging times.The good news is that there are plenty of supports for business owners operating in Ontario. If you’re looking for answers, try some of these tips and resources.

Federal and Provincial Support for Business Owners

Both the federal and provincial governments have announced funds designed to help business owners keep their doors open and their lights on during this time. If you’ve faced slashed hours or needed to lay employees off, then you may be eligible for business support funds.These funds could help you pay your employees during this time. Other funds are available to help businesses n Ontario manage their day-to-day operating expenses.

Check Government Websites for Resources

You may also want to look at the provincial government’s website, which has lists of programs and services for business owners like you. You can find one-on-one small business consulting and guidance, as well as workshops and more. You may also qualify for consultations with lawyers or accountants. Support is also available if you need grants, permits, or licenses. There are even resources to support mentorship and networking, available through Small Business Enterprise Centres.

Connect with Your Peers

Networking resources may be available through government-run resources. You may also find support through local small business organizations or trade federations. Even social media can help as you connect with your colleagues and peers.

Great Options for Creating Liquidity

In an uncertain market, business owners like you need financial options to help you create liquidity. Check in with your financial institution about measures they can provide to help you. You may also explore other options, like a merchant cash advance. The right funding options will help you create stability and flexibility when your business needs it most. Curious to learn more about your financing options? Get in touch with the experts and discover what a merchant cash advance could do for your business.

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Revenue Based Financing: What is it and how can it Help Grow Your Business?

If you’re an entrepreneur seeking affordable funding options for your business without giving up equity or being burdened by debt, Revenue-Based Financing (RBF) might be just what you’re looking for! RBF has been steadily rising in popularity among growth-stage companies, and for good reason; the flexibility and unique blend of equity and debt financing is changing the game as it keeps you in control every step of the way.But that’s not all. A whole world of revenue-based avenues, such as Merchant Cash Advances and Factoring are entering the scene too!In this article, we will dive into the world of RBF, its alternatives, and provide you with valuable resources to help you make an informed decision about financing your business.

What is Revenue Based Financing?

Revenue Based Financing is a new type of funding that combines the convenience of a business loan with the peace of mind of flexible repayment options. Instead of a set monthly repayment, RBF allows your company to trade a percentage of sales for start-up capital. This allows you and the investor, as it provides the funds you need without tying up valuable equity or incurring debt. Your investor can rest easy knowing that they will receive regular payments (though the amounts may vary) under a legally binding contract.

HOW IT WORKS:

1. Find an Investor

Venture capital firms, dedicated RBF investors, or angel investors are a good place to start.

2. Pitch Your Business

Present your business plan, financials and growth projections to the investor. Show them your intended use of the funds and your company’s potential for generating consistent revenue.

3. Negotiate Terms

If the investor is interested, this is where you will negotiate the investment amount, percentage of revenue shared, repayment cap, and anything else that is pertinent to the deal.

4. Sign on the Dotted Line

Once the terms are agreed upon, both you and the investor sign a legally binding document that outlines the specifics of the deal.

5. Put the Funds to Use

Receive your funds (usually in a lump sum), and put them to work in marketing, product development, hiring, or other areas that will propel your company’s growth forward.

6. Monthly Payments

As your business starts generating revenue, repay your investor based on the agreed-upon monthly percentage.

7. The Repayment Cap

Once you have hit the predetermined repayment cap, your obligation to the investor is fulfilled, and you retain full control of your business.

RBF Alternative: Merchant Cash Advances

If your business is retail based or receives a high volume of revenue from credit card transactions (such as a restaurant), Merchant Cash Advances may be a more suitable financing option. With MCA, you exchange a percentage of future credit card sales for the lump sum investment.

HOW IT WORKS:

1. Apply for MCA

Once you find a reputable Merchant Cash Advance provider, apply for funding using the above-mentioned information for your business, as well as your credit card transaction history.

2. Receive the Funds

Again, usually a lump sum.

3. Repay Via Sales

MCA offers a big advantage in that you have quick access to the funds, and the flexibility of repayments being tied to sales, which eliminates the need for collateral. However, MCA’s can be more expensive than a traditional loan, and the deduction from your daily sales may impact your cash flow for a time.

RBT Alternative: Factoring

Factoring is also known as accounts receivable financing or invoice financing. It may work best for you if your business is facing cash flow issues due to slow-paying clients. With factoring, you sell your unpaid invoices to a factoring company at a discount, and they take care of collecting the funds.

HOW IT WORKS:

1. Find a Reputable Factoring Company

Preferably one that specializes in your industry.

2. Sell Your Unpaid Invoices to the Factoring Company at a Discounted Rate

Usually 70-90% of the invoice amount.

3. Get Paid Upfront

The Factoring company will subtract their fees and pay you the agreed upon amount right away.

4. Invoice Collection

Now it’s out of your hands, and the factoring company takes care of collecting the overdue amount from your clients!

5. Receive the Remaining Balance

Once the client pays, the Factoring Company will send you the remaining balance, minus their fees. Factoring eliminates the need for you to waste time chasing after clients to pay their invoices, and gives you quick access to the funds, relieving your financial stress. However, like merchant cash advances, factoring can be more expensive than a traditional loan.

Choosing the Right Financing Option

After reading this article and looking into the different financing options for your business, you hopefully have an idea of which option is best for your business. Ultimately though, the biggest factors to consider are:

  • Your Business Industry
  • Your Revenue Model
  • Company Growth Stage
  • Repayment Flexibility

Once you determine those, you can make the choice that works best to propel your business forward! Revenue Based Financing is getting more creative and attainable as the structure of our economy evolves. It really is becoming the financing option of the future.

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April 13, 2023
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Business Loan in Canada

There is a wide array of services available to businesses in Canada seeking to bolster their cash liquidity. This article will explore some of the most popular options, as well as their best use cases. These financial solutions typically include a combination of bank loans, CEBA loans, government business grants, factoring, cash advances, payday loans, and microloans.

Businesses can utilize these financial options to optimize growth, gain liquidity, bridge emergency situations, or capitalize on opportunities.

Let's delve into our options:

1. Traditional bank loans

This is the most conventional form of financing that small businesses can utilize to obtain Typically, these loans are secured by collateral, and may offer lower interest rates, making them an appealing choice for businesses with strong credit. However, small and medium-sized businesses adhering to conservatism and GAAP principles might have lower perceived financial strength, which can make obtaining traditional financing more challenging, especially if the bank relies on financial statements as part of its due diligence process. This can be particularly problematic for new startups and businesses without a significant financial track record. Furthermore, liquidity provided might be limited if a business is relatively new or experiencing volatility, even with collateral in place.

2. CEBA loans

The Canada Emergency Business Account (CEBA) loans are interest-free loans of up to $60,000 designed for small businesses impacted by the COVID-19 pandemic. These loans are 100% backed by the government and do not require any collateral. Businesses can use these loans to cover operating expenses such as payroll and rent, as well as for purchasing equipment or expanding their operations. The CEBA loans offer flexibility and accessibility with a few caveats. Firstly, the loan forgiveness repayment date has been extended to December 31, 2023, for CEBA loan holders in good standing. This means that loan holders may have to start repaying their CEBA loans as early as 2024. Secondly, eligibility is only applicable to businesses that have had an active business account with their financial institution as of March 1, 2020, and can demonstrate a decline in revenue due to the pandemic.

3. Factoring

Factoring enables businesses to sell their accounts receivable (invoices) to a third-party (a factoring company) at a discount. The factoring company then acts as the agent to collect payments from the invoice customer, providing the business with liquidity (cash) based on a certain percentage of the invoice amount. Factoring can significantly improve cash flow for small and medium-sized businesses by offering liquidity and quick access to funds. It is also helpful that the factoring company will be the one taking care of ensuring invoices are paid, freeing up valuable resources for small businesses.

4. Government business grants

The Canadian government provides an array of business grants designed to help small businesses flourish and These grants typically target specific industries or business activities, such as clean technology, innovation, workforce development, and international trade, among others. A considerable number of grants currently emphasize research, development, and exporting. The application process for these grants can be intricate, requiring well-prepared grant proposals that effectively communicate the business's objectives, anticipated outcomes, and potential impact. This process is often competitive, as numerous businesses vie for the limited funding available. Newer businesses or those without prior grant writing experience may find this process daunting, and may benefit from seeking professional grant writing assistance or collaborating with experienced partners in their industry. Despite the challenges, securing a government grant can be a game-changer for small businesses, providing essential funding without the burden of repayment, and fostering growth, innovation, and competitiveness in the marketplace.

5. Payday loans or Microloans

Payday loans and microloans are small, short-term loans that are typically utilized to address unexpected expenses or navigate temporary cash flow gaps. While these loans may not be suitable for long-term financing needs due to their relatively higher interest rates and fees, they play a vital role in providing financial support during emergencies. By offering quick access to funds, payday loans and microloans help businesses remain afloat and operational during challenging times, allowing them to successfully weather temporary cash flow issues that are anticipated to improve in the near future. This targeted financial assistance can be a lifeline for businesses, enabling them to maintain stability and continue serving their customers as they work towards recovery and growth.

6. Cash Advance

A cash advance, particularly in the form of a Merchant Cash Advance (MCA), is an innovative financing solution that provides businesses with a lump sum of cash in exchange for a percentage of their future sales (typically credit card sales). Cash advances and MCAs can be exceptional financing options for businesses that need funds swiftly or require increased liquidity to seize opportunities that demand prompt. One of the key advantages of this financing option is its speed and flexibility. Cash advances can be processed more quickly than traditional loans, often within a matter of days, allowing businesses to address their financial needs without delay. Additionally, repayment terms are tailored to the business's sales volume, making it a more manageable solution for businesses with fluctuating revenues. MCAs are particularly valuable for new businesses and small enterprises that may face challenges in obtaining traditional bank loans due to a lack of financial history, inadequate financial book strength, or a dearth of collateral. By offering an alternative financing avenue, cash advances empower these businesses to overcome financial barriers and pursue their growth objectives. Ultimately, the various financing options available to Canadian businesses each have their own strengths and specific use cases. Traditional bank loans can be attractive for businesses with strong credit, while CEBA loans offer interest-free financing for those affected by the COVID-19 pandemic. Factoring provides immediate liquidity to businesses with outstanding invoices, and government grants can support targeted industries and activities. Payday loans or microloans can assist in managing short-term cash flow gaps. And cash advances offer rapid access to funds for businesses lacking financial history or collateral. The choice of financing option will depend on the unique needs and circumstances of each business. By understanding the advantages and limitations of each option, businesses can make informed decisions about the most suitable financing solution to support their growth, liquidity, and success.

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May 25, 2026

Why Profitable Businesses Still Run Out of Cash

It's a strange kind of stress to run a business that looks healthy on paper while you quietly panic about cash. The numbers say you're profitable, but the bank account tells a different story.  The gap between those two things is what you need to take into account.

Profit is a calculation. Cash is a Reality.

Your profit and loss statement records revenue when it's earned, not when it's actually received. For example, you invoice a client for $40,000 in October and that sale shows up as October revenue. But if payment terms are net 60, the cash may not land in your account until December. In the meantime you still pay your team, your suppliers and your rent with funds you only technically have. 

Accounting recognizes income on an accrual basis, your landlord does not.

The Timing Gap That Catches Businesses Off Guard

Cash flow is essentially the space between when money goes out and when money comes in. In an ideal world, those two things line up. In practice, they almost never do.

A construction company wins a big project. Materials and labour costs start immediately. The client pays in stages, or at completion. The contractor can be running a healthy margin on paper while being perpetually short on operating funds.

A retailer loads up on inventory before a peak season. Cash leaves weeks before any sales come in. If the season underperforms, that inventory sitting on shelves represents a real cash problem.

A service business bills clients at the end of the month and chases payment for 30, 45, sometimes 90 days. Every dollar in accounts receivable is a dollar that can't cover today's expenses.

None of these businesses are failing. In fact, they might actually be growing. The thing is, growth itself creates cash pressure, because growth requires spending before earning.

Five Reasons Cash Disappears in Profitable Businesses

1. Slow-paying customers: Extended payment terms are normal in many industries, but they transfer the financing burden onto the seller. When you allow net-30 or net-60 terms, you're effectively lending money to your clients interest-free.

2. Rapid growth: This one surprises people. When a business grows quickly, it has to spend more on inventory, staff, materials, and overhead before the revenue from that growth actually arrives. Fast-growing businesses are particularly vulnerable to cash shortages precisely because demand is high.

3. Seasonal revenue patterns: Businesses that peak in certain months, retail over the holidays, landscaping in summer, hospitality in tourist season, often need to spend during slow periods to be ready when things pick up. The cash timing rarely works out cleanly.

4. Large capital purchases: Buying equipment, vehicles, or making leasehold improvements hits cash immediately but shows up as depreciation slowly on the books. The profit looks fine. The bank balance looks rough.

5. Debt repayment obligations: Loan payments, lines of credit, and lease obligations come out of cash, not profit. A business can report solid earnings while being genuinely stretched by its repayment schedule.

The Statement Nobody Reads Closely Enough

Every business has three core financial statements: the income statement (profit and loss), the balance sheet, and the cash flow statement. Most owners pay close attention to the first one. The cash flow statement is where the real story lives.

It shows the actual movement of money through operations, investing activities, and financing. A business can show positive net income while burning through cash every month. The two statements can tell completely opposite stories at the same time.

If you're not reviewing your cash flow statement regularly, you're missing a significant part of the picture.

How to Spot a Problem Before It Becomes a Crisis

A few practical things worth tracking:

Your cash conversion cycle measures how long it takes to turn inventory or work-in-progress into collected cash. The longer that cycle runs, the more working capital you need just to sustain normal operations.

Your accounts receivable aging report shows who owes you money and how long they've owed it. Receivables piling up past 60 days are cash sitting in limbo.

A 13-week cash forecast sounds like something only larger companies bother with, but it's useful at any size. Knowing what's coming in and going out over the next quarter gives you time to act before a shortfall actually hits.

What Business Owners Actually Do About It

Some of it is operational: tighten up invoicing, follow up on receivables more consistently, negotiate better terms with suppliers, watch inventory levels. Those things help and are worth doing.

But sometimes the timing gap is structural. It's not a sign that anything is broken. It's a sign that the business operates in a model where cash collection lags behind cash spending. In those cases, external working capital is a legitimate and practical tool, not a last resort.

Lines of credit, invoice financing, and merchant cash advances exist for exactly this reason: to bridge the gap between when you earn and when you collect, so operations don't have to stall in the meantime.

Worth keeping in mind: a business that needs outside capital because it's struggling is a very different situation from one that needs it because it's growing faster than its cash cycle can keep up with. Those two things can look similar from the outside, but they're not the same problem at all.

What Actually Matters Here 

Profit tells you whether your business model works. Cash flow tells you whether the business can survive long enough to prove it.

Running a profitable business that's tight on cash isn't necessarily a sign that something's wrong. It may just be the reality of operating in the space between earned and received, which is one of the oldest tensions in commerce. The owners who handle it best tend to be the ones who understand it clearly enough to plan around it.

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