2M7's Forward Thinkers Scholarship Winner

· By Avi Bernstein, CEO, 2M7 Financial Solutions

Merchant cash advances aren't priced like bank financing, so their cost can be hard to compare. There's no annual interest rate. Instead, the funder applies a factor rate to the amount you receive to calculate the total repayment, and that total is set before you sign. The cost of capital is the total repayment minus the advance.

2M7 Financial Solutions is a Canadian direct funder of merchant cash advances. At 2M7, the cost of an advance is a fixed dollar amount agreed before you sign. Multiplying the advance by the factor rate gives the agreed total repayment, before any eligible early payoff discount. Factor rates at 2M7 typically fall between 1.18 and 1.48, so a $50,000 advance has an agreed total repayment between $59,000 and $74,000 and a cost of capital between $9,000 and $24,000.

The agreed cost does not grow while the advance is outstanding, and no interest accrues. The factor rate you're offered depends on the funding amount, how long the business has operated, its monthly revenue and its industry.

The repayment option you choose affects your daily cash flow, and an eligible early payoff can reduce the total cost. Both are covered below, with worked examples for a restaurant, a construction company and a retailer. All dollar amounts are in Canadian dollars.

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How do you calculate merchant cash advance costs?

Start with the amount you receive, the total you will repay and the payment coming out of your account. A factor rate is the multiplier used to calculate total repayment. Subtract the advance from that total to get the cost of capital.

Agreed total repayment = Advance × Factor rate

Cost of capital = Agreed total repayment − Advance

With fixed payments, the same amount is paid automatically each business day, and you can call 2M7 to ask about reducing it if revenue drops. Your offer states the payment amount.

With flex payments, the payment is a share of the revenue deposited into your business account each day.

Flex daily payment = Daily revenue × Holdback percentage

The holdback percentage at 2M7 typically ranges from 4% to 30%, depending on the funding amount, revenue and industry. The percentage stays the same and the dollar amount moves with your daily revenue.

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What a $50,000 advance costs

On a $50,000 advance, a factor rate of 1.18 means $9,000 in cost of capital. At 1.48, that cost is $24,000.

Agreed totals are before any eligible early payoff discount. Your offer shows the exact factor rate and agreed total repayment in dollars before you accept it.

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Three worked examples

Illustrative examples, not offers. Factor rates and holdback percentages are within 2M7's published ranges, and agreed totals are before any eligible early payoff discount.

Restaurant. The owner replaces a range and a walk-in cooler. On a day with $3,000 in revenue, $300 goes to repayment. If a slow week drops revenue to $2,000 a day, the payment drops to $200 and repayment takes longer. Changes in sales do not change the agreed $65,000 total. An eligible early payoff can reduce it.

Construction company. A contractor has to buy materials weeks before the client's first progress payment. Revenue arrives in large, irregular deposits rather than steady daily income. This illustration uses fixed payments: the contractor pays the same amount automatically each business day and can call 2M7 to ask about reducing it if a client payment arrives late.

Retailer. A store stocks up in October for the holiday season. In December, daily revenue climbs to $5,000 and the payment rises to $400, so the advance is repaid faster during the busiest weeks. In a quiet January, the payment falls with revenue.

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Fixed or flex payments: the same advance two ways

Here is the restaurant's $50,000 advance at 1.30 under each option. For this illustration, both options use the same factor rate and the same agreed total repayment of $65,000, before any eligible early payoff discount.

With fixed payments, the daily amount is the same each business day, which some owners find easier to plan around. With flex payments, the dollar payment decreases when daily revenue falls and increases when it rises.

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Does paying early save money?

At 2M7, an eligible early payoff receives a 10% discount on the remaining balance when the account is in good standing and the payment comes directly from your business, not from another funder. Not every funder offers an early payoff discount, so when you compare offers, ask whether paying early changes the amount owed.

Take the restaurant again. It has repaid $40,000 of its $65,000 agreed total, leaving $25,000. An eligible early payoff earns $2,500 off, so the owner pays $22,500 instead. The advance's total cost drops from $15,000 to $12,500.

Ask your funding specialist for the payoff amount and the saving at your current balance.

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Factor rate vs APR

A factor rate is not an interest rate. It tells you the total repayment relative to the advance. It does not, by itself, tell you the annualized cost, which also depends on the timing and amounts of payments.

The same factor rate can represent different annualized costs depending on how quickly the advance is repaid, even when the dollar cost stays the same. With flex payments, repayment speed follows your sales.

When you compare offers, compare the agreed total repayment, the effect on daily cash flow and any savings available for an eligible early payoff. Ask for those figures in writing before you accept an offer.

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Does 2M7 charge fees beyond the factor rate?

Beyond the cost of capital, 2M7 charges no application, origination, underwriting, documentation, brokerage, servicing, maintenance, renewal or early repayment fees, and no collateral is required. 2M7 does charge a fee when a scheduled payment is returned.

Not every funder prices this way. When you compare offers, check the amount you will actually receive, the agreed total repayment and any separately stated charges.

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Frequently asked questions

What is a factor rate?

A factor rate is the multiplier used to calculate the total repayment of a merchant cash advance. Subtract the advance from that total to get the cost of capital. At 2M7, factor rates typically range from 1.18 to 1.48.

What is a holdback percentage?

With flex payments, the holdback is the share of the revenue deposited into your business account each day that goes toward repayment. At 2M7 it typically ranges from 4% to 30%. A 10% holdback on $3,000 in daily revenue is a $300 payment.

How much will I pay back on a $50,000 merchant cash advance?

At 2M7's typical factor rates, the agreed total repayment is between $59,000 and $74,000, before any eligible early payoff discount. Your offer states the exact total before you accept it.

Does a merchant cash advance cost more than a bank loan?

Usually, yes, for a business that qualifies for a bank loan. A merchant cash advance trades a higher cost for speed, repayment that can follow your sales, and an approval that weighs revenue alongside credit. Bank financing often takes longer and asks for more documentation. At 2M7, the cost is a fixed dollar amount agreed before you sign, no interest is charged and no collateral is required.

What are 2M7's minimum eligibility requirements?

2M7's minimum eligibility requirements are a Canadian business operating for at least 3 months, at least $15,000 a month in revenue and no open bankruptcies. Credit score is considered alongside revenue, so a low score does not automatically rule a business out. Meeting the minimums does not guarantee approval.

How quickly does the money arrive?

Approval decisions typically come within 1 business day, and funds are typically deposited within 24 hours of approval.

See what your advance would cost

Ask a 2M7 funding specialist for your factor rate, agreed total repayment, daily payment or holdback percentage, and early payoff conditions in writing before you accept an offer.

Check If I Qualify

A small business owner walking into a bank branch today faces a different conversation than the one their parents had ten years ago. Higher borrowing costs have changed how banks price risk, how much collateral they demand, and how quickly they say no. For owners who need capital to make payroll, restock inventory, or replace a piece of equipment that just quit on them, that shift matters more than any headline number on a rate announcement.

The Bank of Canada's Rate Path and What It Did to Lending

When the Bank of Canada raised its policy rate aggressively starting in 2022, the intent was to cool inflation. It worked, but it also raised the cost of every variable rate loan, line of credit, and floating mortgage tied to prime. Banks didn't just pass along higher rates. They also tightened who qualifies for credit in the first place, because higher rates raise the odds of default across their loan books, and lenders respond to that risk by pulling back.

According to the Bank of Canada, cited in ISED's biannual survey analysis, borrowers themselves reported a tightening in overall business lending conditions, a signal that came directly from the Senior Loan Officer Survey rather than from lenders describing their own policies. That distinction matters. It means the businesses on the receiving end of these decisions noticed the change before it showed up in any official policy statement.

Fewer Businesses Are Even Bothering to Ask

One of the more telling shifts isn't in approval rates. It's in how many owners apply for debt financing at all. According to ISED, debt financing requests from small businesses fell to their lowest share since 2009 in 2024. That's not a sign that businesses stopped needing capital. It's a sign that more owners looked at bank criteria, decided they wouldn't qualify or couldn't stomach the terms, and didn't bother filing an application that would just get declined.

That quiet withdrawal from traditional lending channels is where alternative financing has stepped in.

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Why Banks Have Gotten Harder to Work With

Traditional lenders operate on thin margins and heavy regulatory oversight. When rates rise, three things happen inside a bank's underwriting process that owners rarely see directly.

First, debt service coverage requirements get stricter. A business that could comfortably cover its loan payments at a five percent rate might not clear the bar at eight percent, even if revenue hasn't changed at all. Second, banks lean harder on personal guarantees, collateral, and time in business, which locks out newer companies and anyone without significant fixed assets. Third, approval timelines stretch out, sometimes to six or eight weeks, because underwriters are doing more manual review on files that would have sailed through a few years ago.

None of this means banks are wrong to tighten up. It means the businesses that most need fast capital, seasonal operators, contractors waiting on invoices, retailers restocking ahead of a busy season, are the ones least equipped to survive a slow, restrictive process.

Where Owners Are Turning Instead

Alternative lending exists because it solves a timing problem banks are structurally bad at solving. A merchant cash advance, for instance, is underwritten against a business's actual sales history rather than a credit score alone, which means approval can happen in days instead of weeks. For businesses with inconsistent monthly revenue, that structure often fits the real cash flow pattern of the business better than a fixed loan payment does.

This shows up clearly in specific sectors. Restaurants running on tight margins can't wait two months for a bank decision when a walk-in cooler dies in July. Construction and trade businesses face a similar mismatch, since they're often paid on net-30 or net-60 terms while still needing to cover payroll and materials in real time.

Retailers face their own version of the problem heading into peak seasons, when inventory has to be purchased well before it turns into revenue. Waiting on a bank line of credit renewal during that window can mean missing the season entirely.

Credit History Isn't the Dealbreaker It Used To Be

Banks weight personal and business credit scores heavily, and a few rough years, common for anyone who ran a business through 2020 and the years that followed, can shut the door on conventional financing for good. Alternative lenders generally look at current business performance instead of past credit events. If bad credit has been an issue, that doesn't have to be the end of the conversation the way it often is at a branch.

Fast Business Funding as a Strategic Tool, Not a Last Resort

There's a persistent myth that alternative financing is what businesses turn to when they've been rejected everywhere else. That's outdated. Owners increasingly choose fast business funding deliberately, because speed itself has value. A contractor who can jump on a bulk materials discount, or a retailer who can restock a bestseller before a competitor does, is using capital as a competitive weapon, not a rescue line.

Small business loans through traditional channels still make sense for long-term, predictable financing needs, equipment with a long useful life, real estate, expansion with a clear payback horizon. But for working capital, bridging receivables, or reacting to an opportunity that won't wait for a loan committee, alternative structures like a merchant cash advance are frequently the better fit regardless of what a business's credit profile looks like.

Rates will eventually come down from where they've been, but the underwriting discipline banks have built during this tightening cycle isn't likely to disappear overnight. Lenders that got burned by looser standards in the past don't unwind those lessons quickly. Owners who build a relationship with alternative funding sources now, before they're in a cash crunch, put themselves in a stronger position regardless of where the next rate decision lands.

The businesses that come out ahead in this environment aren't necessarily the ones with the best credit scores. They're the ones that understand which type of capital fits which type of need, and who don't wait until a bank says no to look at their other options.

Talk To Us

If bank timelines and tightening criteria are getting in the way of decisions your business needs to make now, don’t hesitate to contact us. We work with Canadian small businesses across restaurants, construction, trucking, and retail to structure funding that matches how your revenue actually moves.

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Restaurant equipment financing lets a restaurant pay for ovens, refrigeration, hoods, dishwashers and POS systems over time instead of in one payment. Canadian restaurants have six main routes: leasing, vendor financing, bank or specialist equipment financing, BDC, the Canada Small Business Financing Program, and a merchant cash advance.

The right one depends on four things: how long the restaurant has been operating, its credit history, how quickly the equipment is needed, and whether the equipment is new or used. A planned kitchen upgrade gives you time to compare offers. An emergency replacement does not.

Restaurant margins leave little room for the wrong choice. Statistics Canada reports that food services and drinking places earned a 4.1% operating profit margin in 2024. Cost of goods sold took 35.9% of expenses, and salaries, wages and benefits took another 33.6%. A walk-in cooler that fails in July has to be paid for out of what is left.

This guide explains how each option works, what each provider looks at, what each costs, and where each one fits.

Your restaurant equipment financing options compared

These routes overlap. A dealer may arrange its financing through a bank or a specialist, and BDC is itself an equipment financing provider. The table separates the routes you will meet when you shop.

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Need to replace equipment and keep your operating cash intact? See 2M7's restaurant equipment and operations funding, including who qualifies and how payments work.

How much does restaurant equipment financing cost?

There is no single rate for restaurant equipment financing in Canada. Your quote depends on the provider, your restaurant's finances, the equipment, the amount and the length of the agreement.

To compare offers fairly, ask every provider the same six questions about the same purchase:

1. How much cash do I pay up front, including any deposit or down payment?
2. What is each payment, and how often is it collected?
3. What is the total I will pay, including all financing charges and fees?
4. Is there a final payment or a buyout before I own the equipment?
5. What happens if I pay the balance early?
6. Do the payments change if my sales fall?

A longer term lowers each payment and raises the total you pay. A low lease payment can also leave out the buyout you need to take ownership.

The CSBFP is the one route with a published ceiling. The maximum floating rate is the lender's prime rate plus 3%, and the maximum fixed rate is the lender's single-family residential mortgage rate plus 3%. The registration fee is 2% of the loan. These are limits, and your own quote may be lower.

A merchant cash advance carries no interest rate, but it does carry a cost. Ask for the dollar amount you will receive and the dollar amount you will repay, in writing, before you decide.

Restaurant equipment leasing

Restaurant equipment leasing lets you use equipment for a fixed term in exchange for regular payments, without buying it at the start. Many leases include an option to purchase the equipment when the term ends.

BDC's guidance is that leasing suits equipment with a shorter lifespan or equipment that needs frequent updating, while buying suits equipment that will last. In a restaurant, that points to leasing for POS hardware and other technology, and to buying for ranges, hoods and walk-in coolers that stay in service for years.

Before you sign a lease, ask four questions. Who pays for maintenance? Can you swap the equipment during the term? What does the end-of-term buyout cost? What happens if the restaurant moves or closes?

Leasing also changes how the cost is treated at tax time. The Canada Revenue Agency lets a business deduct the lease payments incurred in the year for property used in the business. If the leased property has a total fair market value above $25,000, you and the lessor can jointly elect to treat the lease as a purchase. You would then deduct the interest portion and claim capital cost allowance on the equipment. Ask your accountant which treatment fits your restaurant.

What a lessor looks at: the equipment itself, the length of the term, and your restaurant's ability to make the payments.

Vendor and dealer financing

Vendor financing means the company selling the equipment also arranges the financing. BDC describes it as financing provided through a manufacturer's financing division or a partner financial institution.

The appeal is convenience. You choose the equipment and arrange payment in the same conversation, and BDC notes that vendor financing is fast and carries lower upfront costs.

The trade-off is flexibility. BDC describes vendor financing as shorter term and less flexible than a traditional term loan. Before you sign, compare the total you will pay against at least one other option on this page.

Ask for the equipment's cash price separately from the financing offer, so you can see what the financing itself costs. Choose the equipment first, on the model, warranty and servicing your kitchen needs. A supplier's financing offer should not decide what you buy.

What a vendor looks at: this varies by dealer and by the financing partner behind it. Ask who the actual financing provider is and what happens if you want to pay the balance early.

Bank and specialist equipment financing

Banks and specialist equipment financing companies fund the purchase of business equipment and assess both the business and the asset. According to BDC, the equipment is used as collateral most of the time, and the repayment period is matched to the equipment's lifespan.

This route suits an established restaurant buying equipment that will last. The paperwork is heavier than with a vendor. BDC lists what equipment financing providers commonly ask for:

• Financial statements for the past two years
• A monthly cash flow forecast for the rest of the current year and the following 12 months
• Background on the company, its operations and its management
• An explanation of how the equipment will increase sales, profitability or efficiency

Requirements vary with the provider and the size of the request. Ask whether the offer covers delivery and installation. Financing that covers only the equipment can leave a cash gap before the kitchen can use it.

What a bank or specialist looks at: the restaurant's financial history, its forecast, and the resale value of the equipment.

BDC equipment financing

The Business Development Bank of Canada offers an Equipment Loan for new or used equipment. Its terms are among the longest available to a Canadian restaurant:

• Financing of up to 125% of the purchase price, which leaves room for shipping and installation
• Repayment over up to 12 years
• The option to postpone capital payments for up to 24 months at the start

Eligibility is the constraint. BDC requires the business to be based in Canada, to have generated revenue for at least 12 months, and to have a good credit track record.

Postponing capital payments delays the principal. It does not remove the cost of financing, so check what the payment becomes once principal repayment starts.

What BDC looks at: revenue history of 12 months or more, and credit record. A restaurant that opened this year, or one with damaged credit, will need a different route.

Canada Small Business Financing Program

The Canada Small Business Financing Program (CSBFP) is a federal program that shares the risk of a loan with the financial institution that makes it. You apply through a bank or credit union, and that institution alone decides whether to approve the loan. Most start-ups and existing small businesses with gross revenues of $10 million or less can apply.

The program allows a business to borrow up to $1.15 million: a maximum of $1 million in term loans and $150,000 in lines of credit. Term loans can pay for new or used equipment.

The full $1 million is not available for kitchen equipment alone. The program sets a lower limit for equipment and leasehold improvements, so confirm the current figure with your financial institution before you plan a purchase around it.

The program also caps the cost. The maximum floating rate is the lender's prime rate plus 3%, and there is a registration fee of 2% of the loan.

Restaurants use this program more than any other sector. In 2024-25, accommodation and food services received $900.9 million, or 47.8% of the total value of CSBFP loans. Equipment loans made up 18.6% of the total.

What the financial institution looks at: the same things it would for any business loan, including financial statements, forecasts and credit history. The program reduces the institution's risk. It does not remove its approval process, so allow time for it.

Financing used restaurant equipment

Used restaurant equipment can be financed. BDC's Equipment Loan and CSBFP term loans both cover new or used equipment, and other providers set their own rules.

A used range or dishwasher costs less up front, which shrinks the amount you need to finance. It also gives a financing provider less security, because older equipment is worth less if it has to be resold.

Before you pay a deposit on a used purchase, ask each provider four questions:

1. Is there a limit on the age or condition of the equipment you will finance?
2. Do you need an appraisal, an inspection report or proof of ownership?
3. Will you finance a purchase from a private seller or an auction, or only from a dealer?
4. Are delivery, installation and any repairs included?

Compare the installed cost of the used unit against a new one, including warranty and servicing. A lower price helps less if the unit breaks down soon after it goes in.

If the answers rule out conventional financing, a merchant cash advance is one way to fund a used purchase, because the funding is based on your sales and not on the equipment.

Restaurant equipment financing with bad credit

Bad credit narrows your options without closing all of them. BDC notes that there is no specific credit score needed to get a business loan, and that financing can still be obtained with a suboptimal score when other factors, such as projections and collateral, are strong.

In practice, a weak credit history makes bank-delivered options harder to secure and pushes restaurants toward providers that weigh revenue more heavily. 2M7 bases approval on recent sales activity, and credit score is one factor among several.

For a full comparison of what each provider checks and what each option costs, read Bad Credit Equipment Financing in Canada.

Financing equipment for a new restaurant

A restaurant that has not opened yet, or has just opened, has fewer options because it has no revenue history to show.

Without revenue history, a provider relies on your business plan, your forecast and your personal credit. Have all three ready before you approach a lessor, a vendor or a bank.

When a merchant cash advance makes sense for restaurant equipment, and when it does not

A merchant cash advance is an advance on your restaurant's future sales. You receive a lump sum and repay it from revenue, with the total cost set before you sign. It is not secured against the equipment.

It has no interest rate, but it has a cost: a fixed amount set at the start. Compare that cost against the sales you lose each day the kitchen is down.

It makes sense when:

• The equipment has failed and the kitchen cannot run without it. A dead walk-in cooler or range costs you sales every day it is out, and a bank process measured in weeks does not help.
• The cost is a repair, an installation or a compliance fix. Conventional equipment financing is built around buying an asset, and these costs do not always qualify.
• You are buying used equipment from a private seller or an auction that an equipment financing provider will not fund.
• Your credit history or time in business rules out BDC and bank options, but your sales are steady.

It does not make sense when:

• The purchase is large, planned and long-lived. If you qualify for a BDC Equipment Loan or a CSBFP loan and can wait for approval, a term of up to 12 years will usually cost less than a merchant cash advance.
• Sales are too thin to carry the repayments. Funding tied to revenue only works if the revenue is there.
• The restaurant has been open less than 3 months or brings in under $15,000 a month. It will not qualify with 2M7.

The practical test is whether your restaurant can carry the repayments and still cover food, wages and rent. Run the numbers against a slow month, not your busiest one.

How to prepare before applying

Having the right documents ready shortens every one of these processes. What you need depends on the route.

For leasing, vendor financing, specialist financing, BDC or the CSBFP:

• A written quote or purchase agreement for the equipment
• Financial statements for the past two years
• A monthly cash flow forecast
• A short explanation of what the equipment will do for the restaurant: more covers, lower energy bills, fewer breakdowns
• Your premises lease, since a provider may want to know how long you can stay at the location

For a merchant cash advance from 2M7:

• Three months of business bank statements
• Photo ID
• A void cheque

Get two quotes for the equipment before you apply anywhere. A lower purchase price reduces the amount you finance under every option.

Then budget for the whole project: the equipment, delivery, installation and removal of the old unit.

How 2M7 funding works for restaurant equipment

2M7 Financial Solutions is a direct funder that provides merchant cash advances of $5,000 to $300,000 to Canadian businesses. Restaurants use the funding for ranges, walk-in coolers, POS systems, dining room furniture and compliance repairs.

To qualify, your restaurant needs to:

• Be located in Canada
• Have been operating for at least 3 months
• Bring in at least $15,000 a month in revenue
• Have no open bankruptcies

Meeting these minimums does not guarantee approval. 2M7 reviews each application.

Approval takes one business day, and funds arrive in your account within 24 hours of approval. No collateral is required.

You see the total cost before you sign. There is no interest, and there is no penalty for paying early. You choose between two repayment structures. Flex payments move with your daily card sales. Fixed payments stay the same unless you call 2M7 to request a lower amount when revenue drops.

2M7 has funded more than 5,000 small businesses and issued more than $650 million since 2008.

See how this applies to your kitchen on the restaurant equipment and operations funding page, or check if you qualify.

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Frequently asked questions

What is restaurant equipment financing?

Restaurant equipment financing is any arrangement that lets a restaurant pay for kitchen, bar or front-of-house equipment over time. In Canada the main forms are leasing, vendor financing, bank or specialist equipment financing, a BDC Equipment Loan, a CSBFP loan and a merchant cash advance.

How much does restaurant equipment financing cost?

There is no single rate. Ask each provider for the upfront cash, the payment amount, the total you will repay and any buyout. Under the CSBFP, the floating rate cannot exceed the lender's prime rate plus 3%, and there is a 2% registration fee.

Is it better to lease or buy restaurant equipment?

Lease equipment you expect to replace or upgrade, such as POS hardware. Buy equipment that will stay in service for years, such as ranges and walk-in coolers. Check who pays for maintenance and what the buyout costs before you sign a lease.

Can I finance used restaurant equipment in Canada?

Yes. BDC's Equipment Loan and CSBFP term loans both cover new or used equipment. Other providers set their own limits on age, condition and seller, so ask before you pay a deposit.

Can I get restaurant equipment financing with bad credit?

Yes, though the options narrow. BDC notes that no specific credit score is required for a business loan. Providers that base approval on revenue, including 2M7, can fund restaurants that a bank would decline.

Can a new restaurant get equipment financing?

A restaurant with no revenue history can apply for leasing, vendor financing or a CSBFP loan, which is open to most start-ups. BDC's Equipment Loan requires 12 months of revenue. 2M7 requires 3 months in operation and $15,000 in monthly revenue.

Does the CSBFP provide $1 million for kitchen equipment?

No. The program allows up to $1 million in term loans, but a lower limit applies to equipment and leasehold improvements. Your financial institution decides the amount it will approve.

How long can I take to repay a BDC Equipment Loan?

Up to 12 years. BDC also allows capital payments to be postponed for up to 24 months at the start of the loan.

Are restaurant equipment lease payments tax deductible?

The Canada Revenue Agency lets a business deduct lease payments incurred in the year for property used in the business. Confirm how this applies to your restaurant with your accountant.

How fast can I get funding to replace broken kitchen equipment?

It depends on the route. 2M7 approves applications within one business day and deposits funds within 24 hours of approval. Bank-delivered options take longer because they require financial statements and forecasts.

Does a merchant cash advance have a cost?

Yes. It carries a fixed cost of capital in place of an interest rate. Compare the amount you receive, the total you repay and how often payments are collected before you accept an offer.

What documents do I need to apply?

For most equipment financing: an equipment quote, financial statements and a cash flow forecast. For a merchant cash advance from 2M7: three months of bank statements, photo ID and a void cheque.

Choosing the right option

Start with how much time you have. If the purchase is planned and your restaurant has at least 12 months of revenue and sound credit, begin with BDC or a CSBFP loan through your bank. The terms are the longest available.

If you are buying from a dealer and want one conversation, ask for the vendor's financing terms and compare the total cost against a second option.

If the equipment has already failed, your credit is damaged, or your restaurant is too new for BDC, look at funding that is based on your sales. Check if your restaurant qualifies with 2M7.

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