7 Small Business Trends to Leverage in 2020

Cannabis has been legalized in Canada since 2019, and since the legalization, the consumption of marijuana has skyrocketed to the extent that setting up a cannabis business in the country is guaranteed to be a profitable investment. There’s never been a better time to move into the industry. However, if you’re a cannabis enthusiast that wants to make a move into this industry, the first thing you’re probably concerned about is the working capital to start the business. Business loans in Canada are a big part of the entrepreneurial world, however, getting funding for a cannabis business is easier said than done. So, how can you get funds for your future company? If this is a question that you’re asking, you’re at just the right place. Here are a few funding options from sources that will happily lend you money.

Bank Loan

Banks are obviously the first option whenever we think about anything money/loan-related. But cannabis, banks, and business loans in Canada are three things that don’t blend well together. Most mainstream banks will refuse to work with cannabis companies. However, if you can find the right bank, there’s potential to get your hands on a large stack of cash for your cannabis company at reasonable interest rates. There’s a lot of room for customizing payment plans as well, so you can pay back the money on your terms. You’ll have to find a relatively smaller bank that has lenient policies for where they invest their money. But even those banks are strict with their requirements for loans and will check to make sure you don’t have bad credit. The banks will not approve a loan if there’s any signs of problems in your credit and financial history.

Business Line of Credit

A business line of credit is another underrated option when it comes to getting funds for a cannabis business. It’s a simple process that provides your business with a revolving credit limit. It’s very similar to a credit card, but interest rates are significantly lower. You can withdraw a certain amount of money that you need and will have the option to pay it back in the form of monthly balances and partial payments. You’ll have the added benefit that the interest will only be charged for the outstanding balance of your card, making it a viable option for business loans in Canada. This is a good option for some quick funding when you need to pay the utility bills, fund inventory refilling, pay salaries, and more. However, you’re not going to get a large amount of money with a business line of credit. You’re going to be limited to a certain amount of money, depending on your credit limit. If you’re looking for funds to start your company, a business line of credit is not a good idea. If you need a small amount of money for occasional expenses, this is a great option.

Merchant Cash Advance

A merchant cash advance is, by far, the best way a cannabis business can secure funding. It’s a system where you pay today’s bills with tomorrow’s money. Your MCA provider will hand over a flat sum of cash directly into your account, and you’ll only have to return a certain percentage of your sales every month until the entire amount is covered. This is a flexible option for businesses that aren’t certain of what their sales volume will be each month. For example, if you have $0 in generated revenue for December, you won’t have to pay back anything to your MCA provider. That’s the major benefit of MCA and why it’s such a great idea for an industry like cannabis. Where Can You Get a Merchant Cash Advance? So, now that you know what an MCA is let’s talk about where you can get it. 2M7 Financial solutions is a Canadian merchant cash advance provider that has been helping small businesses like yours get over the funding limitations and compete with your top competitors. The best part about working with 2M7 is that we give funds to companies that banks and other lenders are saying no to. Here’s a breakdown of why 2M7 is the company that should fund your business:

• Quick Process – We work fast! If you signed up for an MCA in the morning, you could have the money in your account by the end of the day.
• Ignoring Bad Credit – Unlike banks, 2M7 doesn’t rely on credit scores as a factor to decide who gets funding and who doesn’t. If you have bad credit, you are still eligible for an MCA.
• Multi-Use Funding – Businesses have tons of miscellaneous costs, and we get that. That's why the money you get from 2M7 can be used for any business purpose you choose.

Conclusion

A merchant cash advance is the best way to secure capital for your company. So, if you are looking for a Canada-based provider to help you out, get in touch with the funding experts and discover how this alternative financing option can help your business.

You’ve been researching financial options for your business. Now you’re wondering what the advantages of a merchant cash advance (MCA) really are. These five benefits show you just how helpful MCA could be.

A Merchant Cash Advance Is Flexible

One of the big advantages of a merchant cash advance is that it can be more flexible than a traditional loan. You may qualify for a larger amount, but you don’t have to take the entire sum. You can take what you need instead.

MCAs can also be more flexible in terms of how they’re repaid. Since they’re made on the basis of future sales, you’ll pay a percentage of your actual sales. If sales are low one month, you’ll pay less. When sales are high, you can pay your advance off faster.

MCAs Don’t Need to Be Big

Another great feature of MCA is that you don’t have to be looking for a large amount. Banks sometimes won’t approve business loans under $100,000.

If you just need a small injection of cash to keep the business floating, you may want much less than that. In that case, MCAs can be a great choice.

New Businesses Can Qualify

When you apply for a loan with the bank, they’ll likely want to see a business history, as well as a business plan. If you haven’t been in operation for quite some time, you may not qualify.

MCAs are evaluated on the basis of your estimated future sales, not what you did in the past. If you just opened up shop but need cash, a merchant cash advance can help.

The Process Is Simpler

Applying for a bank loan can be a long and complex process. If you need cash right now, then a merchant cash advance could be your best bet. It’s easier to apply for, and you’ll get approval sooner.

The Uses Are Endless

With a bank loan, you may need to declare a certain purpose. A merchant cash advance can be used to do almost anything in your business. If you need to fund payroll or want to invest in a special project, then a merchant cash advance could be the right choice.

Ready to discover all the advantages of MCA for your business? Get in touch with the experts and get the funds you need.

You’ve done your research, and you’re convinced a merchant cash advance is a great opportunity for your business. You can get a flexible funding solution to help you cover essential business costs or even expansion. Better yet, you can quickly access the funds you need with flexible repayment terms. So, how do you get an MCA? Follow these steps and you’ll have the funding you need in no time.

Research Providers

Doing research should be your first step. There are plenty of lenders offering MCAs, but not all of them are created equal. Many of them do business online. This makes it easy to find information about where they operate and the kinds of businesses they support. Some specialize in working with small businesses, while others prefer working with large businesses. Some may have expertise in your industry. Always look for a provider who is upfront about their MCA program. Check customer reviews and testimonials. What do other business owners say about this lender?

Submit an Application

Once you’ve decided on a provider, it’s time to prepare your MCA application. Always review the lender’s specific requirements. The more complete and accurate your application, the faster the lender can approve you. You’ll need to provide:

• Government-issued ID, to prove your identity
• Your merchant ID number
• Recent bank statements
• A void cheque

Your merchant ID number allows the lender to check on your merchant account, giving them accurate information on your monthly sales. Your recent bank statements can also provide this information, as well as crucial information about cash flows. You’ll also need to provide a bank account number for your business. The business bank account is where your merchant cash advance will be deposited.

The Approval Process

The lender will approve your application within two business days. If your application is complete and accurate, the funds may arrive on within the same day. Always check what the lender will provide. Some lenders will offer up to 125 percent of your monthly sales. Next, they’ll send you an agreement. Read this over carefully, since it contains information about your repayment schedule, fees, and more. Some lenders post their general terms, including rates and fees, online. You can review them before you apply. If you’re unsure about the lender’s offer, don’t be afraid to contact them. For example, if you were hoping for more funds than they offered, you can discuss their rationale with them. Once you’re satisfied with the lender’s terms, your funds will be transferred to your bank account.

How Repayment Works

Your merchant cash advance provider should get in touch with your payments processor. They’ll set up direct deductions, which means repayment of your advance happens automatically. You can keep track of payments through your account with the provider. This makes the process perfectly transparent, and you’ll always know where you stand.

Get the Funds You Need Now

Ready to get a merchant cash advance for your business? You can get in touch with the experts for a free quote or apply now. The funds you need could be just a few clicks away.