How to Attract Customers to Your Store in 2021

With COVID-19 vaccines being administered all around the world, it's only a matter of time that businesses resume their work in the field. While corporations will have little to no hurdles, it will be small businesses that will have to make more effort. You don’t need to be an expert to understand these issues in today's economy. Some help in reopening will allow any sort of company to see instant results if capital is invested and used effectively. This is where merchants cash advances come in. An MCA works very differently. You’re receiving funding from a financial solution business. However, the perk of getting an MCA is that you only have to pay it back from a percentage of your sales. If you aren’t making any sales, you won’t have to pay back anything. So, if that doesn’t sound like a reasonable enough argument to make you get an MCA to nudge your business in the right direction, let us continue. Here are five reasons why cash advances will work in our company’s favor.

Easy to Qualify

Today's economy makes it troublesome for businesses in terms of finance. Conventional loans have rigid requirements that are turning people away. Moreover, they take more time, and sometimes your request may be denied. Merchant cash advances are more viable as they offer a sum of money at a fixed rate, and are easy to qualify for, even for first-time owners. While bank loans require hours to fill out, these applications contain brief questionnaires, prioritizing output rather than processing information. Expand Office Space Upgrading your office will be one of the heftiest investments you’ll ever make. But, it’s a necessary one. If your office space no longer meets the requirements of your business, you have to move into something that’s more fit to your needs. However, it’s not cheap. Moving into a new office requires a ton of money upfront. An MCA can be a great way to complete the down payment and move into the new office.

Quick Funding

Traditional bank loans have an approval time for weeks, and it is not even certain if your application will get accepted or not. If you don’t want to get caught up in those waiting times, an MCA is the best option. Funds from an MCA could reach your account the same day as your application is submitted!

Works Despite Credit Score

There are cases when businesses are in a stable situation and may have a poor credit score. In such cases, qualifying for a loan is impossible as banks want a surety that you are a viable candidate for receiving money. A history of bad credit is a red flag that tells a bank you won’t be able to repay the loan. An MCA gives you a much reliable alternative for cases where credit scores are low. There will be some things that will change but you will still be entitled to receive a cash advance!

No Restrictions

With bank loans, there are a ton of rules and regulations that restrict you from spending your money on certain places. With an MCA, there’s no such limitations. You’re free to invest your advance into anything as long as it helps in the growth of your business. An MCA can help elevate your operation to new heights with greater flexibility and opportunities. If you’d like to learn more about obtaining a merchant cash advance for your business, 2M7 Financial Solutions is here to help. We offer merchant cash advances to businesses in all industries and of all sizes. Gain an edge over your competition and contact us today.

If you are looking to grow your business, then you may find it challenging if you have poor credit. However, there are a number of options that can help your business get the financing with poor credit. Here’s a look at the steps you can take to secure fencing for your business with poor credit.

1) Check your credit score

The first thing that you should do is know your credit score. If your credit score is below 700, then your credit will be considered subprime. Also, this can prevent you from the top business financing options. You can credit your credit score for free on Credit Karma. You can also request one credit report, per year, from the two major credit reporting agencies.

• Experian to include a different link https://www.transunion.ca/
• Equifax - to include a different link https://www.consumer.equifax.ca/

2) Know your options

Once you know your credit score, then you can explore your options. In fact, if you have a low credit score, then you will want to consider the following types of financing options:

• Business credit cards - There are a number of business credit cards that allow customers with subprime credit scores. While these credit cards may have higher interest rates, they will allow your business to get the quick funding that you need.
• Merchant cash advance - A merchant cash advance is an advance based on the credit card sales deposited into your business’s bank accounts. In short, a merchant cash advance can help you get access to your money faster for a small fee. Many businesses used merchant cash advance to gain faster cash flow.
• Short-term line of credit - A short-term line of credit allows you to draw from a pool of funds. When you pay back the loan with interest, then you can draw from the line of credit again.

3) Create a business plan

If you are looking to secure a short-term business loan, it is a good idea to have a business plan. After all, the bank will want to know what type of business that you are in and how you intend to generate revenue. A well-organized business plan will increase your chances of being approved for a short-term business loan.

4) Have collateral

If you have any form of collateral, then you can secure a loan much more easily. Here are some types of collateral that can allow you to get the funds that your business needs:

• Vehicle
• Property
• Inventory
• Unpaid invoices
• Cash

5) Find a co-singer

Finally, you can find a co-signer that can help you secure a loan or financing with poor credit. A co-signer can be anyone from a member of the family to a business partner. The co-signer should be aware that they are liable for the loan if you don’t pay back the principal or the interest.

Getting your business up and running

Bad credit doesn’t have to stop you from funding your business. At 2M7 Financial Solutions, we do not require a credit score to issue a merchant cash advance. Apply now to get a merchant cash advance today.

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.