Merchant cash advance, also known as credit card receipt advance, is actually not a loan. A company is buying your future credit and debit card transactions at a discount. They advance you the money upfront and then takes a percentage of your daily credit and debit transactions until the amount owed is paid off. If you have a slow month, you’ll end up paying less. So there is no actual interest rate, no time limit and no fixed payments to speak of. A key advantage of these types of advances is that no collateral are required. So for a business owner without any equity in a property, sometimes this is the only way to get the money they need. And this is why merchant cash advance has been growing in popularity in Canada in the last few years.
Usually your business will have to be in existence for at least a year and your credit/debit receipts have to exceed $5000 per month. Typically you can borrow about an amount equal to your monthly credit/debit receipt amount.
If you require more information, please contact us. We would be happy to help.
