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5 Ways to Achieve Financial Independence

5 Ways to Achieve Financial Independence

5 Ways to Achieve Financial Independence
10
May 2021
27
Jul 2026

Most people will never know what it is like to have true financial independence. However, you don’t have to be one of them. By taking the right step today, you can build wealth that can allow you to have the passive income that you need to achieve financial independence. Here are five steps that you can take today.

1) Create a plan

The first thing that you need to do is have a plan. Figure out how much of an income you would like to have after you officially retired. The rule of thumb is that you should save up to 25 times your annual desired passive income. For instance, if you would like to get $50,000 annually in passive income, then you would have to build up to $1,250,000 in your savings by the time you are planning to retire.

2) Save and invest

To start building the wealth that you need for financial independence; you will need to save and invest. Don’t worry if you don’t currently have a high income. You can have time to work on your side. Through the magic of compound investing, you can build some incredible wealth by investing in stable, dividend-paying stocks. Aim to save at least 10% of your income each month to achieve your financial independence goals.

3) Live below your means

As you get older, you will likely increase your income. This can lead to “lifestyle creep” which can cause you to spend more. It is important to continue to live below your means so you can save and invest. The higher rate of your savings, the faster you can achieve financial independence.

4) Have an emergency fund

One unforeseen medical or life emergency can derail your financial independence plans. Therefore, you will want to have money set aside in case the unexpected happens. Some situations that may require emergency cash include a setback in your business, medical emergencies, or a natural disaster.

5) Study the economy

The economy plays a big role in how your business operates, the purchasing power of your money, and your income. Be sure to study the stock market, the economy, interest rates, and other factors that can play a role in your business and investing life. A great way to stay on top of the economy is to read top economic books and to read up on the latest economic articles on sites such as Bloomberg, CNBC, and The Wall Street Journal.

Keep your business on track and achieve your financial goals

Make sure that your business stays on track. With 2M7 Financial Solutions, you can receive the merchant cash advance that your business needs to stay on top of expenses. To learn more, please contact us. We are always ready to assist your business today.

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July 16, 2026
July 26, 2026

The Future of Alternative Lending in Canada

Canadian small business owners have never had a more complicated relationship with capital. The cost of materials is up, hiring is expensive, and the big banks, despite a series of interest rate cuts over the past year, are still not exactly rolling out the welcome mat. A 2025 survey by Equifax Canada found that 25% of small and medium business owners cited credit availability from banks or suppliers as one of their top concerns heading into the final quarter of the year. That number tells a story most business owners already know by heart.

The good news is that a parallel financial system has been quietly maturing alongside the traditional one. Alternative lending in Canada is no longer a last resort. It is becoming the first call.

The Market Is Growing Fast, For Good Reason

According to Research and Markets, Canada's alternative lending market reached an estimated $18.42 billion in 2025, following a compound annual growth rate of 16% from 2020 to 2024, with projections putting that figure at roughly $30.59 billion by 2029. Those are not niche numbers. That is a structural shift in how Canadian businesses fund themselves.

The reasons are not hard to find. According to the Bank of Canada's Business Outlook Survey for Q4 2025, business sentiment remained subdued, with firms pointing to trade-related uncertainty, slowing demand, and persistent cost pressures as their most pressing concerns. When cash flow is tight and the economic environment is uncertain, waiting three weeks for a bank decision is not a viable strategy. Businesses need answers faster, and alternative lenders have built their entire model around that reality.

What "Alternative" Actually Means in Practice

The term gets used loosely, so it is worth being specific. Alternative lending covers working capital loans, revenue-based financing, equipment financing, invoice factoring, and lines of credit. One of the most practical tools in this category is the merchant cash advance, which gives a business a lump sum in exchange for a percentage of future revenue. There is no fixed monthly payment grinding against a slow week. Repayment breathes with the business, which makes it particularly well-suited to operators with variable or seasonal revenue.

For industries like construction, retail, trucking, and food service, that kind of structural flexibility is not a nice-to-have. It is the difference between taking a contract and turning one down.

The Speed Problem Banks Still Have Not Solved

A contractor who wins a large job but needs equipment before the first draw arrives has a real and immediate problem. Alternative lenders who work with trades and construction businesses understand the cash flow cycle of that industry and can structure a deal accordingly, often with capital in hand within days. A retailer staring at a seasonal inventory window that will not wait for bank paperwork faces the same math. The problem is timing. The solution is fast business funding from a lender who understands the sector.

Speed alone, though, is not the whole value proposition. The better alternative lenders are also smarter about who they will fund.

Credit Scores Are Not the Whole Story

Traditional banks lean heavily on credit scores and historical financials. They want two or three years of clean statements, solid collateral, and a business that practically does not need a loan to qualify for one. Alternative lenders are increasingly looking at revenue patterns, bank statement trends, and business trajectory instead. A business with a rough patch in its history but strong current cash flow is a very different risk than its credit report might suggest.

That nuance matters enormously to the owner who went through a hard year during a supply chain disruption or a pandemic slowdown and rebuilt. The reality is that a lot of viable businesses carry bruised credit, and the full picture of a business cannot be reduced to a three-digit number.

Open Banking and the Technology Layer

There is a regulatory development worth watching closely. Canada's consumer-driven banking framework, commonly called open banking, is set to launch in 2026, designed to replace risky online password sharing with secure data connections and to increase competition in the financial services sector. For alternative lenders, this matters. Open banking means faster, more accurate access to financial data with the borrower's consent, underwriting decisions made in hours rather than days, and a cleaner picture of a business's actual financial health.

For borrowers, it means less paperwork. The loan application process, already streamlined by the better alternative lenders, will get faster still.

AI-powered underwriting is part of this picture too. Decisions that once required manual review are increasingly automated, and lenders are getting better at identifying creditworthy businesses that traditional models would have rejected. The businesses that benefit most are exactly the ones that have been underserved the longest: service businesses with thin assets but strong revenue, newer operators without years of statements, and owners in industries that banks have always found difficult to assess.

Sector-Specific Lending Is Maturing

A trend that deserves more attention is the rise of industry-specific lending. Generic small business loans are fine, but a lender who understands the cash flow cycle of a specific industry will structure a deal differently than one who treats every file the same way.

Trucking is a good example. Owner-operators often invoice on 30- to 60-day terms while fuel costs hit weekly. Getting capital from a lender who actually understands the trucking industry means repayment gets structured around that reality, rather than creating a cash flow problem with the solution itself. Sector fluency is increasingly a real differentiator in this space.

The Road Ahead

The trajectory for alternative lending in Canada is clear. The gap that banks leave in the small business credit market is not getting smaller. The technology powering faster and smarter lending decisions keeps improving. And Canadian entrepreneurs are becoming more financially literate about their options, less willing to accept a bank rejection as the final word.

The businesses that will thrive in this environment are the ones that treat capital access as a skill, not a crisis response. Knowing your options before you need them is a genuine competitive advantage.

2M7.ca works with Canadian small business owners across industries to find the right funding structure for their situation, whether it is their first alternative loan or their tenth. If you have questions about what the best option is for your business, feel free to reach out to us.

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April 13, 2023
August 7, 2026

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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March 15, 2021
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How to prepare your business for capital raised

You have worked hard to start up your business. After perfecting your presentation, you have been able to raise some capital. Congratulations! Now what do you do? Make sure you don’t waste this opportunity to launch your business right. Here are five ways to prepare your business for capital raised.

1) Know your “runway”

Your business’s “runaway” is the amount of time your business has before it runs out of cash. First, you should look at your business’s monthly expenses and your capital raised and then, determine how much time you need in order to gain a steady stream of income. Ideally, you will want your business to have a six-month “runaway.” With six months’ worth of operating capital, you can deal with various disruptions that will come with operating a new business.

2) Use a budget management tool

One of the best ways to manage your business is to use a budget management tool, and with the right budget tool, you will be able to manage your expenses and identify opportunities to save money and run leaner. There are a number of top budget management tools that are designed around start-ups. Some of the top budget management tools include the following: Quicken - Quicken is great for smaller starter-ups with its easy-to-use software and interface. Centage - If you have more complex operations, then Centage is an ideal budget management software system. Lola - Lola is a great budget management tool if you are dealing with a number of expense report.

3) Secure the best prices from vendors

You want to make sure that your capital goes as far as it can possibly go. Therefore, you will want to control your costs. One of the best ways to control cost is to be able to get the best prices from your vendors. Be sure to get multiple quotes from as many vendors as possible. Also, if you are planning to use a vendor for the long term, try to negotiate better prices to help you stretch your capital.

4) Have a business plan

It’s a good idea to have a business plan. In fact, a business plan is like a road map that shows everyone in your company, as well as your investors, what is your plan to grow income and become profitable. If you have no experience writing up a business plan, don’t worry. There are a number of business plan templates that you can use to help you get started. Here are a couple of places where you can find business plan templates:

5) Have an emergency or contingency plan

You want to make sure that your business has a plan for the unexpected. In fact, situations such as natural disasters or disruptions in manufacturing or inventory can spell disaster for your business. The best way to plan for an emergency is to set aside a portion of your capital raised and set it aside for emergency situations. That emergency money can save you in situations where you need money fast and you may not be able to raise further capital.

Getting your capital for your business going

Now that you have the capital that you need for your business, it is time to get going. Be sure to have a plan, set a budget, and watch your spending. Also, spend your business capital the right way and you will be well on your way to start-up success. If you require a merchant cash advance for your business, 2M7 Financial Solutions are here to help you out. Request a quote, we will be happy to assist you.

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