As a business owner, there are several options available for financing. You can apply for a loan from a bank, a credit union or a private lender, or use your corporate credit card. However, if you are looking for a solution as flexible as your sales are variable, you should consider the cash advance for traders. This type of loan, which has low fees and easier eligibility criteria (based on your sales rather than your credit rating), is a great way to get the funds you need.
Who is eligible for cash advance for traders?
Eligibility for this product depends on different criteria. Most lenders examine your business and your sales rather than your credit report, but each lender has its own criteria. In most cases, this is what Canadian loan companies are looking for:
A business operating in a business rather than at home or online;
A minimum amount of monthly sales by credit or debit card;
A minimum number of active months or years;
A company headquartered in Canada.
If you meet these simple criteria, you could get the money you need. Lenders offer loans from $ 5,000 to $ 1,000,000 depending on the size of your business and your ability to repay.
How do borrowers use the funds?
The big advantage of the cash advance for traders is that you can use the money for practically anything to improve your business. For example, if a project with an excellent return on investment is coming to you, the funds you have raised could allow you to undertake this project. The cash advance can also help you renovate your store to make it more modern and up-to-date. In fact, there are many ways you can use money to purchase equipment, renew your inventory, and even get through a lull if your business is seasonal.
How does the refund work?
Unlike traditional loans, the repayment is adapted to your reality. There is no fixed time to repay the entire loan. When you accept this loan, you consent to the lender taking a small percentage of your daily sales until full repayment. In addition, unlike banks, the lender does not require an initial guarantee and you are not immediately excluded if you have a bad credit rating. This loan is focused on the results of your business and your ability to repay over time.
How can I get a cash advance?
If you are interested in the cash advance for various business needs, you will need to provide some basic information: essential information about your business, your merchant number, your latest bank statements, a piece of identification issued by the government and a canceled check. If the loan amount is high, you may need to provide additional documentation.
Thinking Capital is a leading provider in Canada for merchant cash advances. If you need money for your business for any reason – for example, buying materials, opening a new branch – we can help you get those funds. The request is very simple, and you can do it today.