5 Ways to Boost Your Business Cash Flow

Oct 2021

May 2026

A business in its prime has sufficient cash flow to carry out all the operations of the firm. When sales and profits are high, companies can take their guard off by increasing the expenses. When records are left unchecked and minimal attention is given towards the cash, bankruptcy becomes the fate of the business. When companies are progressing exceedingly, they need to pay extra attention to their affairs and the cash flow.

Sustaining cash is one of the most common challenges that firms face. Therefore, they must exhibit vigilance in the maintenance of cash flow to progress optimally. So, if you’re looking to boost your cash flow and, in turn, boost your business, here are five ways to do just that.

Lease

Real estate, automotive, and machinery can be more expensive on full payment leading to delirious prospects. Lease payments are an effective approach for business. They can spare a portion of the total income and designate it to the lease payments.

Avoiding Complete Purchases

In the case of complete payments, companies may end up compromising their other practices. If profit exceeds the usual amount, then companies can use it for other developmental strategies instead of paying the entire purchase. They can open up further avenues from the supplementary profits.

Improving Receivables

On certain occasions, payables can exceed the receivables. When the payables are due before receivables, then cash flow becomes affected. In such a scenario, the probability of bankruptcy is high. Companies should analyze accounts payable and receivables. They should garner the receivables before the payables to pay off the debts, carry out the purchases, and stock the inventory.

Early Notifications

Notify the customers and clients of their payments and plan a strategy to manage the payables. Send out the invoices early and conduct electronic payments to ensure safety and accessibility.

Merchant Cash Advance

Merchant Cash Advances are one of the most underrated and efficient ways of maintaining the cash flow. It doesn’t just enable companies to sustain cash but also enhance their prospects. The principle of MCA dictates that certain companies give out money to those business that require investments. Such companies can use it to raise capital and execute payables. They can utilize the cash flow to function productively. The companies have to pay a certain percentage each month they generate revenue. In case of lower cash flow, they can skip the payment and release them later when they gain sufficient cash flow. Moreover, MCA providers also hand out funding to businesses with low credit scores. So, if a bank is turning you down for a loan, you still quality for an MCA and will receive the funds regardless of your credit score.

Conclusion

Maintaining cash flow can be daunting but specific protocols and funding options like MCA ensure that companies retain handsome amounts of cash in their organization. If you run a business and require MCA, then 2M7 is here to help you out. We’re a financial organization that was designed to help small to medium-sized businesses scale in the market. Give us a call today at 1-844-932-0418, and get approved for business funding today.

November 18, 2019

May 12, 2026

How to Get a Business Line of Credit?

What is a business line of credit?

A business line of credit (LOC) is designed to meet the short-term financing needs of businesses. Basically, it is a revolving sum of money lent to a business owner. The borrower pays interest on the borrowed amount while the interest rate may be at a fixed or variable rate, depending on the borrower’s financial state. LOC is a type of debt financing, which is offered by traditional financial institutions in Canada. A business line of credit is often referred to as a “corporate line of credit”. As a debt instrument, they are both the same.LOC is very much like a credit card for your business. The business owner will be given a pre-approved credit amount from which he can draw capital as needed. Once the funds are used, the borrower will need to repay the amount including the interest over the repayment term as agreed. A business line of credit is one of the many options to fund your business or to get funds for a new business. It gives access to affordable credit if the borrower qualifies. The LOC provides ready cash flow, that could help solve the liquidity problems that small businesses tend to suffer the most.

What is a small business line of credit?

Lending providers offer a small business line of credits to small-sized businesses with different combinations of rates and qualifications. These may include the following:

An unsecured line of credit (up to $50,000)
Secured credit (up to $1,250,000)
Floating interest rates
Business insurance
Shorter approval/processing times
Low monthly fees

A small line of credit under $300,000 can be approved online. For small business owners, a line of credit is one of the easiest ways to secure cash flow for their business operations. The application for a small business line of credit is typically short, and approval can be granted within one business day.

How to get a line of credit for your business?

Banks in Canada have a variety of LOC products for small and mid-sized businesses. You should consider applying for a business line of credit at a bank you’re already registered to. Make sure to apply for a line of credit ahead of time as, unlike loans, it can take up to a month to get approved. In order to apply for a line of credit, you should open a business bank account. Below is a list of documents that you would need to provide for your LOC application:

Two pieces of government-issued IDs
Proof of income
Business financial statements, including income, expenses, assets, and liabilities
Other personal- and business-specific information such as an address, license number (if applicable), and how long you’ve been in business

How to get approved for a business line of credit?

Whether or not your line of credit is approved depends on your credit score and your business qualifications. The higher your credit score and the more stable your business income, the more likely it is that you will be approved for a line of credit, and the larger it will be. It is very important to have a good credit score and to keep your business financial documents in order. If a bank is unable to adequately assess your business potential, it will lower the chance of receiving a line of credit. With a private lender, things are a bit easier as the lender may adopt different criteria and qualifications to advance the line of credit. Also, private lenders are more open to lending to businesses with lower credit scores. Remember, when looking for a small business loan line of credit, make sure to evaluate several options. The majority of small businesses prefer to choose private lenders as they are able to receive more flexible offers. Check out how merchant cash advance works to see if your business qualifies.

Why is a business line of credit better than a loan?

A business loan is typically obtained and disbursed only for a specific purpose. It is meant to provide access to capital for a one-time, major financial expenditure. Therefore, to manage your operating cash flow, you will have to apply for multiple business loans – each of which will negatively affect your credit score.However, a business line of credit allows you to improve your credit score. You only borrow the money you need and pay interest based on that amount. A business LOC allows for greater financial planning and resolves cash flow problems that small businesses often experience.

Why you may be denied a line of credit?

There are a number of reasons why you may be denied a business LOC. Most likely, your bad credit score will lead to a refusal, but that is not the only reason. The line of credit may be refused for a number of reasons, including:

Purpose of LOC does not meet the required criteria
Your industry is too risky
The commercial bureau reports negative performance
Business revenues indicate insufficient ability to handle monthly payments

Having a low credit score doesn't mean you can't take any type of loan. Check out some ways to get a business loan with a bad credit score.

Approaching a private lender for a small line of credit

If you require a moderate-sized line of credit, it is worth approaching a private lender. A small lender will not require as many documents as the bank, and the approval process will be faster as well. Also, private lenders accept applications for LOCs online and you can get request a quote online. Private lenders will help you understand why your line of credit has been denied by the bank and can provide the necessary funding in a shorter time with less hassle and stress and treated as bad credit debt help. If you are interested in an alternative solution made for small businesses, talk to one of our experts today for the best business cash advance loans.

May 25, 2022

May 12, 2026

2M7 Announces 2022 “Forward Thinkers Scholarship” for Business and Finance Students in Canada

2M7 Financial Solutions is proud to announce its annual Forward Thinkers Scholarship to support Canadian post-secondary students in Business, Finance, or equivalent programs who are forward-thinking individuals dedicated to making a difference in their fields. The selected recipient will have demonstrated excellence in their studies and will receive $2,500.00 CAD towards their continued success.“

Students are the future of our industry and we welcome the new perspectives and fresh ideas they bring to the table,” said Avi Bernstein, CEO of 2M7 Financial Solutions. “We’re proud to support passionate and talented individuals in the pursuit of their education, and we welcome all Business and Finance majors to apply for an opportunity to receive the Forward Thinkers Scholarship in 2022.”

As one of Canada’s leading merchant cash advance providers, 2M7 Financial Solutions helps Canadian small and medium businesses secure the funding they need to accelerate their growth. As a client-centric company, 2M7 values the entrepreneurs who are the backbone of the Canadian SME economy and believes in empowering business owners and enabling them to achieve their full potential. Similarly, 2M7 believes it’s important to give students the opportunity to excel in their fields and bring cutting-edge ideas that will help drive the industry forward.

The selected recipient will encompass 2M7’s values of innovation and demonstrate a genuine desire to make innovative strides within their respective field.

To learn more about the scholarship or to start the application, please visit the Forward Thinkers Scholarship page here.

Applications will be accepted beginning June 1^st, 2022, and the deadline to apply is 11:59 PM on August 31, 2022. Winners will be announced in the Fall of 2022.

About the “forward thinkers scholarship” by 2M7

The ”Forward Thinkers Scholarship” by 2M7 is an annual scholarship program, established in 2022 by 2M7 Financial Solutions. It recognizes outstanding students who are pursuing or entering full-time studies in Business, Finance, or an equivalent program. For those interested in applying for the 2022 scholarship, please make sure to follow 2M7 on Facebook for further announcements.

October 12, 2022

May 12, 2026

2M7 Announces 2022 “Forward Thinkers” Scholarship Recipient

2M7 Financial Solutions is proud to announce the recipient of the 2022 “Forward Thinkers” scholarship – the annual scholarship that recognizes distinguished and entrepreneurial students who encompass 2M7’s values and demonstrate a genuine desire to make progressive strides that help drive their desired industries forward.“We’re pleased to award this year’s Forward Thinkers scholarship to Beiya Xie, a Business student majoring in Entrepreneurship and Innovation, who challenges the status quo and thinks outside the box to find innovative solutions to improve her family’s small business,” said Avi Bernstein, CEO of 2M7 Financial Solutions. “Since its inception, 2M7 has been driven to support forward-thinking small businesses in their journey, and Beiya demonstrates a level of dedication and innovation that is at the core of our business values.”As a proudly Canadian owned company, 2M7 strives to stay at the forefront of its industry and offer an alternative lending solution that better fits the needs of small businesses in Canada – giving them quick access to the funding they need to expand and accelerate their growth in order to succeed in today’s competitive landscape.“Canadian entrepreneurs and small businesses are the backbone of our economy, and 2M7 has an unwavering commitment to helping them grow. Just as with our small business clients, we believe it’s important to give students the opportunity to excel in their fields,” said Avi Bernstein. “Beiya demonstrates a deep passion for improving the products her family business offers, a vision for expanding the services they provide, and a dedication to customer service excellence that 2M7 is proud to support.”Founded in 2008, 2M7 Financial Solutions has grown into one of Canada’s largest merchant cash advance providers – providing over $250 million in small business funding to date. With extensive expertise in Canada’s lending landscape, and a deep understanding of the challenges that small businesses face in getting approved for loans, 2M7 helps business owners get the financing they need.

About the “forward thinkers scholarship” by 2M7

The ”Forward Thinkers” scholarship is an annual scholarship program, established by 2M7 Financial Solutions to recognize outstanding students who are pursuing or entering full-time studies in Business, Finance, or an equivalent program. The scholarship is awarded to students that encompass 2M7’s core values and demonstrate a genuine desire to make innovative stride that drive their industries forward. For those interested in applying for the 2023 scholarship, please follow 2M7 on Facebook for updates on next year’s scholarship.