Four Small-Business Trends Canadian Owners Should Act On

Sep 2026

Oct 2026

Business trends are useful when they lead to better decisions. For Canadian small-business owners, four shifts now affect everyday operations: cyber risk is becoming more sophisticated, artificial intelligence is moving into normal workflows, customers are validating businesses across more channels, and persistent cost pressure is making cash-flow planning more important.

These trends apply differently across industries. A restaurant, contractor, retailer, and trucking company will not use the same technology or financing structure. The practical goal is to identify the changes that matter to your operation, test improvements on a manageable scale, and measure the result.

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1. Cyber resilience is now an operating requirement

Cybersecurity has moved well beyond antivirus software and an occasional password change. Phishing, ransomware, compromised credentials, payment fraud, and AI-assisted impersonation can disrupt sales, expose customer information, and stop a small team from operating.

CIRA’s 2025 Cybersecurity Survey collected responses from 500 cybersecurity decision-makers across Canada. Among the organizations surveyed, 43% reported being targeted in a cyberattack during the previous 12 months, while 42% reported a breach involving customer or employee data. CIRA also found that 70% were concerned about threats associated with generative AI. The Canadian Centre for Cyber Security similarly describes the national threat environment as increasingly complex and sophisticated.

The practical response is to build a small set of repeatable controls. Use multi-factor authentication for email, banking, payroll, cloud storage, and administrative accounts. Keep software and devices updated, restrict access to the information each employee actually needs, maintain tested backups, and train staff to verify unusual payment or account-change requests through a second channel.

An incident-response plan matters as much as prevention. The plan should identify who will secure accounts, contact financial institutions or technology vendors, communicate with customers, and restore critical systems. CIRA reported that 66% of surveyed organizations had used their incident-response plan in the prior year, reinforcing the value of deciding these responsibilities before an incident occurs.

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2. AI and digital tools need a clear business purpose

Artificial intelligence is becoming more common in Canadian businesses, but adoption alone does not guarantee a productivity improvement. Statistics Canada reports that 12.2% of Canadian firms used AI to produce goods or deliver services in 2025, double the previous year’s share, while another 14.5% planned to adopt it within the following 12 months.

The same Statistics Canada analysis offers an important caution. Firms using AI initially appeared more productive, but the direct relationship was no longer statistically significant after accounting for prior productivity and complementary capabilities such as cloud computing, data analytics, research and development, and employee technology training. The evidence suggests that AI delivers more value when it is part of a broader operating system rather than an isolated software purchase.

A sensible starting point is one repetitive, measurable workflow. A business might use a digital tool to summarize service requests, organize inventory data, draft routine customer communications, or flag overdue invoices. The owner should define the expected result, protect sensitive information, keep a person responsible for review, and compare time, error rates, or conversion outcomes before expanding the tool.

CFIB’s 2025 digital-transformation report drew on a survey of 1,683 Canadian business owners and found that firms with deeper digital adoption consistently reported stronger productivity outcomes than firms with lower adoption. The broader lesson is to connect technology spending to a process, a responsible employee, and a performance measure.

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3. Customers verify a business across multiple channels

A prospective customer may encounter a company through a search result, review platform, social post, industry directory, referral, or AI-generated answer. They often continue checking before they make contact. That makes consistency across the company’s website, business listings, reviews, and third-party profiles an important trust signal.

BrightLocal’s 2026 Local Consumer Review Survey used a representative panel of 1,002 U.S. adults. It found that 97% read reviews for local businesses and that respondents used an average of six review sites while evaluating businesses. After reading positive reviews, 54% said they were likely to visit the company’s website. These are U.S. consumer findings rather than Canadian population estimates, but they illustrate how reviews frequently lead to additional verification rather than an immediate purchase.

For a small business, the practical work is straightforward. Keep the business name, phone number, address, service area, hours, and product descriptions consistent wherever the company appears. Request genuine reviews as part of a normal follow-up process, respond specifically to both positive and negative feedback, and never buy or incentivize misleading reviews. Publish detailed case studies or testimonials only with appropriate customer permission.

The company website must support what people find elsewhere. Clear service explanations, real leadership information, transparent contact details, and consistent business facts help visitors evaluate credibility. They also give search engines and AI systems better source material when answering questions about the business. Owners evaluating any financing company should review its reputation, verify its claims, and use a structured set of questions before choosing a business funder.

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4. Cash-flow flexibility remains a competitive capability

Revenue and profit do not always arrive on the same schedule as payroll, inventory purchases, repairs, tax obligations, or supplier payments. Persistent cost pressure makes that timing gap harder to absorb.

Statistics Canada reported that 62.2% of businesses expected cost-related obstacles in the third quarter of 2025. Inflation was the most frequently cited cost obstacle, and accommodation and food services and retail trade were among the sectors most likely to identify it. The practical implication is that owners need a current cash-flow forecast rather than relying only on an annual budget or income statement.

A useful forecast maps expected cash receipts and required payments by week, highlights possible shortfalls, and defines what action the business will take if sales, collections, or costs move away from plan. Owners can also review supplier terms, deposit policies, invoicing speed, inventory levels, recurring expenses, and the minimum reserve needed to cover critical obligations.

External financing may be part of that plan, but the product should match the purpose. Innovation, Science and Economic Development Canada reports that 97% of small-business debt-financing applications were approved in 2025 and that the average interest rate declined to 5.8%. However, 75% of small businesses obtaining debt financing were required to pledge collateral, up from 66% in 2024. Availability therefore does not tell an owner whether a product is appropriate for a particular need.

Before choosing funding, compare the total repayment amount, annualized cost where available, collateral or guarantee requirements, time to funding, payment frequency, flexibility during slower periods, early-payment terms, and permitted use of proceeds. A conventional loan or line of credit may suit a planned, longer-term investment. A merchant cash advance may be considered for a shorter-term working-capital need when speed and revenue-linked remittances are important, but its total cost should be reviewed carefully. Businesses with imperfect credit can also compare the broader range of business-funding options available in Canada.

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Turn trends into operating decisions

The most useful response to these trends is a short operating plan. Strengthen one cyber control, test one digital workflow, correct inconsistent public information, and update a 13-week cash-flow forecast. Each action should have an owner, a deadline, and a simple measure of success.

If a working-capital need remains after reviewing expenses, collections, reserves, and conventional financing, compare the available structures carefully. 2M7 can explain how its funding works and provide the total repayment and remittance terms for review. Readers can also consult the small-business finance glossary before requesting a quote or starting an application.

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Sources

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April 13, 2023

August 11, 2026

The Small Business Owner's Guide to Business Loans 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, 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. 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.

3. Government business grants

The Canadian government provides an array of business grants designed to help small businesses flourish. 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.

4. 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.

5. Merchant 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.

October 27, 2026

Small Business Loans in Canada: How 2M7, Driven and Greenbox Capital Compare

Most owners searching for a small business loan already know roughly how much they need. The harder questions are whether they qualify yet, and what the payments will do to their cash flow in a slow month. Those answers are rarely on the first screen of a lender's website.

For newer businesses, the first question usually comes down to timing. Driven, formerly Thinking Capital, requires six months in business, a 600+ credit score and $120,000 in annual revenue. Greenbox Capital requires five months. 2M7 reviews applications from businesses that have been operating for three months, bring in $15,000 a month and have no open bankruptcies.

Picture a landscaping company that opened in March. By June it has three solid months of sales and a crew to pay through peak season. Under a six-month rule, it can't apply until September, when the season is winding down and the expenses have already been paid.

Driven offers term loans. 2M7 and Greenbox Capital offer merchant cash advances, which work differently, and the difference is explained further down. Every competitor figure below comes from that company's own website.

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Side-by-side: published requirements and terms

All amounts are in Canadian dollars.

Requirement	2M7 merchant cash advance	Driven small business loan	Greenbox Capital merchant cash advance
Time in business	3 months	6 months	5 months
Minimum revenue	$15,000+ a month	$120,000+ a year	$10,000+ a month
Credit	Bad credit does not automatically rule you out; typically no hard credit check to apply	600+ FICO score; says applying does not affect your credit score	400+ credit score; hard credit check at the time of offer
Other requirements	No open bankruptcies	Must be an incorporated business	Must accept card payments; public records reviewed
Funding range	$5,000 to $300,000	$10,000 to $500,000 (another section lists $500 to $300,000)	$3,000 to $500,000 (its funding conditions list up to $350,000)
Published costs	One-time cost of capital, quoted individually and shown before signing; no interest or hidden fees	Pricing from 3.9 cents on the dollar; says no hidden fees	Setup fee of 4% of the amount funded ($349 minimum), plus a $95 disbursement fee
Payment options	Fixed amount, or Flex: 4% to 30% of daily card and debit sales	Daily or weekly payments over 3 to 24 months, subject to eligibility	Share of daily or weekly card and debit sales; fixed and flexible schedules mentioned
Documents	3 months of bank statements, photo ID, void cheque	6 months of bank statements or a bank connection; Canadian business bank account	3 months of bank statements; tax returns in some cases

Competitor terms as published on October 18, 2026. Sources: 2M7 merchant cash advance, homepage and application page; Driven; Greenbox Capital homepage and merchant cash advance page.

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Why three months versus six months matters

A six-month rule gives a lender more history to judge. Three months already shows most of what matters, though: how much money comes in, how steady it is from week to week and whether the account stays positive. Bank statements show that more directly than a credit report does.

That history matters most in businesses where the costs come first. A restaurant buys equipment and stock before its first busy season. A contractor pays for materials and crew weeks before the client's first payment clears.

2M7 reviews your statements alongside your industry and time in business. Our Fundability Score™ is separate from bank credit scoring, so bad credit doesn't automatically end an application, and applying typically doesn't involve a hard credit check. Driven requires a 600+ credit score and incorporation. Greenbox sets a 400+ credit score and runs a hard credit check when it makes an offer.

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What the funding costs beyond the advance

Each funder in this comparison describes its cost in a different way, which makes a straight comparison harder than it should be.

Greenbox lists two fees in its funding conditions: a setup fee of 4% of the amount funded ($349 minimum) and a $95 disbursement fee for Canadian businesses. On a $50,000 advance, those two fees total $2,095, separate from the cost of the funding itself. Its merchant cash advance page puts typical factor rates between 1.1 and 1.5.

A factor rate is simpler than it sounds: multiply it by the amount funded. A $50,000 advance at 1.3 means repaying $65,000, whether that takes four months or eight.

Driven prices its term loans from 3.9 cents on the dollar, says it charges no hidden fees and offers lower rates to businesses with credit scores above 750. That figure is a starting price, so your actual cost depends on the rate and term you're offered.

2M7 charges a one-time cost of capital instead of interest. It's quoted for your business specifically, you see the full amount before you sign, and there are no hidden fees on top.

Compare the amount deposited in your account, the total you'll repay and the payment schedule. Published figures like these can't tell you which provider will cost less for your business. Only a written offer can.

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Get Approved For Funding

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How payments change when sales slow down

This is the part of a funding agreement owners most often underestimate. A fixed daily payment that feels easy in July can be hard to carry in February, especially for seasonal businesses. 2M7 offers two structures.

Flex payments take a set percentage of your daily card and debit sales, between 4% and 30% depending on your agreement. At 10%, a $2,000 day puts $200 toward your balance and an $800 day puts in $80. Because it follows your sales, Flex is only available to businesses that process card and debit payments every day.

Fixed payments take the same amount on schedule, and you know that figure before you sign. They suit businesses with steady revenue that want a predictable number. If sales drop, customers in good standing can call us to request a temporary reduction, subject to our approval.

Greenbox takes payments from daily or weekly card and debit sales and mentions both fixed and flexible schedules, but it doesn't publish the percentage. Driven collects daily or weekly payments over terms of 3 to 24 months and doesn't describe payments that adjust with sales.

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Is a merchant cash advance a loan?

No. With a conventional business loan, you borrow money and repay it on an agreed interest and payment schedule. A merchant cash advance is funding against your future sales, and you pay a one-time cost of capital instead. Ours depends on your industry, location, time in business, number of employees and the amount you receive.

That's also why a factor rate or withholding percentage can't be read like an annual interest rate. The useful comparison is the total dollars you'll repay and how quickly the payments come out. We go into more detail in the difference between a merchant cash advance and a business loan.

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Questions to ask any funder, including us

Before you sign anything, get clear answers to these:

How much reaches my account after setup, disbursement or other fees?
What's the total I'll repay, in dollars?
Will applying or accepting an offer trigger a hard credit check?
How often are payments taken, and are they fixed or tied to my sales?
What happens to my payment if sales drop for a month?
Is there a discount for paying early, and what are the conditions?
Is there a personal guarantee? "No collateral" doesn't mean "no personal guarantee."
If I need more funding later, how does a top-up change my current payments?

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Frequently asked questions

Can my business apply for funding after three months?

Yes. Canadian businesses can apply to 2M7 after three months if they bring in at least $15,000 a month and have no open bankruptcies. Approval depends on our review. Driven requires six months and Greenbox Capital requires five.

Can a startup with no revenue get 2M7 funding?

No. 2M7 funds operating businesses with at least three months of history and $15,000 or more in monthly revenue, because the review is based on your actual sales.

How fast does 2M7 fund?

2M7 makes a decision within one business day, and approved funds reach your account within 24 hours. Existing customers can text their rep for a top-up, which is typically paid out within 30 minutes if approved.

Does applying to 2M7 involve a hard credit check?

Applying to 2M7 typically doesn't involve a hard credit check. The review focuses on your bank statements, revenue, time in business and industry.

Does 2M7 charge fees on top of the cost of capital?

No. 2M7 doesn't charge interest or application, origination, documentation or brokerage fees. You pay one cost of capital, and you see it before you sign.

Does paying early reduce my cost?

Yes. 2M7 takes 10% off your remaining balance when you pay early, as long as your account is in good standing and the payment comes from you rather than from another funder.

What happens after I click Check If I Qualify?

You fill out a short form with your contact details, business name, time in business and monthly revenue. A 2M7 funding specialist then calls to verify your details. If you move forward, you'll need three months of bank statements, photo ID and a void cheque.

Do 2M7 payments drop when my sales drop?

With Flex payments, yes. The amount collected is a percentage of daily sales, so it falls on slower days. With fixed payments, the amount stays the same unless you ask for a temporary reduction and 2M7 approves it.

Check whether your business qualifies

Since 2008, 2M7 has issued more than $650 million to over 5,000 Canadian businesses, and about 80% of our customers come back for additional funding. We're a direct funder rather than a broker, so the money comes from our own account and you deal with the people making the decision.

If you've been operating for at least three months and bring in $15,000 or more a month, the first step is a short form with your contact details and basic business information. Have three months of bank statements, photo ID and a void cheque ready for the next step.

Check If I Qualify

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February 22, 2022

August 10, 2026

2M7 Featured as a Leading Merchant Cash Advance Provider in the 2022 Canada FinTech Lending Study

2M7 Financial Solutions is honoured to be featured as a leading merchant cash advance provider in the 2022 Canada FinTech Lending Study, organized by Smarter Loans, which offers insights into the state of the industry and emerging trends. According to the study, the primary concerns for borrowers were interest rates and loan terms, with 40% ranking these as their top priorities. This indicates that financing needs are rapidly evolving – which is particularly true for Canadian businesses.

However, a shift in the financial landscape has created unique challenges for small and medium businesses in getting approved for loans, and the digital credit score algorithms used by traditional lending sources such as banks have made it increasingly more difficult to secure small business financing. Therefore, 2M7 has been stepping up to support Canadian businesses with a lending alternative – providing faster and easier access to the working capital they need, and offering flexible repayment terms to help maintain a positive cashflow during these challenging times.“

We are directly supporting the economic recovery and are working tirelessly to help Canadian companies prosper during these times,” said Avi Bernstein, CEO of 2M7 Financial Solutions. “Right now, more than ever, small and medium businesses need more accessible funding options to grow their businesses, and 2M7 is eager to be a part of the journey alongside them. We love to see our clients succeed and are committed to supporting their growth, just as any good partner should.”

With a 75% approval rate, 2M7 Financial Solutions is delivering on its mission to fund every Canadian business that needs financing. Using a proprietary algorithm to evaluate risk and determine credit worthiness, 2M7 is able to fund businesses that might not otherwise qualify for a traditional loan. Furthermore, the innovative assessment process gets businesses approved faster, with funds deposited directly into their bank accounts within 24-48 hours – delivering a solution to the simplified application process and rapid access to funds that were rated among the priorities for borrowers in the 2022 FinTech study.

About 2M7 Financial Solutions

‍2M7 strives to provide a unique financing solution that is in line with the demands of today’s emerging industry trends in order to create a seamless funding and repayment experience. As the industry continues to evolve, 2M7 remains at the forefront of the innovative technologies and processes that are transforming the Canadian financial industry, providing solutions that better meet the needs of Canadian businesses.