According to the Canadian Federation of Independent Business (CFIB), 2025 was a divided year for Canadian small business: while 37% of owners reported a good year in terms of revenues and profits, 35% reported a poor one. The smallest firms felt it most. Among businesses with fewer than five employees, only 35% described 2025 as a good year, compared to 42% of larger firms. Tariff pressures, high operating costs, and slowing business dynamism have left many owners caught in a difficult position.
For those who have turned to the bank for help, the options are often limited. The federal government's Canada Small Business Financing Program (CSBFP) issued just 6,409 loans totalling nearly $1.9 billion in 2024-25, a record in program history. But with approximately 1.2 million small businesses in Canada, the reach of traditional financing programs remains narrow. The average CSBFP loan size was $294,067, which is far more than what most small business owners need to solve a specific, immediate cash flow problem.
A Merchant Cash Advance (MCA) is one alternative worth understanding. It is not a bank loan. It is an advance on your future revenue, repaid as a percentage of daily sales, with a single fixed cost of capital disclosed upfront. There are no interest charges, no hidden fees, and no collateral requirements.
Some industries tend to benefit from this kind of flexible, short-term working capital more than others. Below are five industries which benefit from a merchant cash advance:
1. Restaurants and Food Service
Canada's foodservice sector added nearly 24,000 jobs between January and November 2025 according to Restaurants Canada, a sign that demand is holding up. Growth, however, requires capital, and restaurant revenue is inherently unpredictable. Equipment needs replacing without warning. A slow season can erode a cash position that looked healthy a few months earlier. Traditional lenders typically want two or more years of financial history and strong collateral before approving financing, which many independent restaurant owners cannot provide.
A merchant cash advance can provide working capital in the range of $5,000 to $300,000, with approval typically within one business day and funds deposited within 24 hours. Because repayments are tied to a percentage of daily sales, owners pay more when business is strong and less when it slows. This structure suits the seasonal and variable nature of restaurant revenue better than a fixed monthly payment.
One restaurant owner who used 2M7 funding for a kitchen equipment upgrade described the experience this way: "Highly recommend 2M7 if you are planning any big purchases. They helped us get funding for the new kitchen equipment and we continue to upgrade our facility."
2. Construction and Trades
Construction businesses routinely face a timing problem: materials, equipment, and labour costs arrive before client payments do. Payment terms of 30, 60, or even 90 days are common, which means contractors are often funding project costs out of their own cash flow while waiting for invoices to clear. Banks are generally reluctant to lend against this kind of irregular, project-based revenue, which leaves many contractors with limited options when they need capital quickly.
A merchant cash advance can help bridge the gap between project start and payment receipt, allowing contractors to cover immediate costs without waiting on a lengthy approval process or pledging personal assets.
Sean Morales, who needed funding for a demolition project, noted: "We need funds for a demolition project for our office. These guys got it done in less than 24 hrs."
More information on how working capital applies to the construction sector is available on 2M7's construction and trades funding page.
3. Retail and E-Commerce
Canadian e-commerce orders rose 20% in 2025 according to Omnisend, reflecting continued growth in both online and in-store retail. Sustaining that growth requires inventory investment well ahead of actual sales. Retailers need to order stock months before peak seasons, and suppliers often require payment before goods are delivered. A bank approval process that takes weeks is rarely compatible with those timelines.
Merchant cash advances allow retailers to access the capital they need for inventory, seasonal staffing, or store improvements without lengthy documentation requirements or the need to pledge collateral.
Morgan Lowe, a boutique retailer who used an MCA to expand her store, said: "I am a small business owner that just recently expanded and was struggling to find funding. 2M7 came through and has been wonderful to deal with."
For businesses where inventory is the core challenge, the impact can be ongoing. Visionary Hydroponics noted: "We are a small business and maintaining inventory can be a challenge. These types of [advances] help keep product on the shelf."
Details on how 2M7 works with retailers are available on the retail inventory and growth funding page.
4. Trucking and Transportation
BMO's Fall 2025 Canada Truck Transportation update describes the Canadian trucking industry as still in a fragile state, with trade barriers and tariff uncertainty continuing to weigh on domestic and cross-border freight volumes, rates, and fleet fundamentals. For owner-operators and small fleets, this means running lean while still needing to cover fuel, maintenance, and payroll between loads.
Traditional financing in this sector often requires an established credit history and years of documented revenue, which can be difficult to demonstrate during a period of industry-wide softness. A merchant cash advance offers a more accessible path to short-term working capital, with repayments that adjust alongside revenue rather than remaining fixed regardless of conditions.
More detail on how this applies to transportation businesses is available on 2M7's trucking funding page.
5. Landscaping and Seasonal Businesses
Seasonal businesses face a structural cash flow challenge that most financing products are not designed for. Revenue arrives in concentrated bursts, while costs related to insurance, equipment upkeep, and preparing for the next season continue year-round. A lender evaluating a landscaping company's winter financials will often see a picture that looks worse than the underlying business actually is.
The CFIB's December 2025 survey found that smaller firms are the most vulnerable to sudden cost pressures and disruptions. For seasonal operators, that kind of pressure is predictable and recurring rather than exceptional.
A merchant cash advance with flexible repayment can work with this pattern rather than against it. When revenue is strong in peak season, repayments reflect that. When it drops in the off-season, repayments decrease proportionally. Owners are not locked into a fixed payment schedule that ignores the realities of how their business operates.
Who Qualifies
Businesses interested in a merchant cash advance through 2M7 need to meet a straightforward set of criteria:
- The business is located in Canada
- The business has been operating for at least 3 months
- Monthly revenue is at least $15,000
- There are no open bankruptcies
No collateral is required. Approval decisions take into account overall revenue and business activity, not credit score alone.
How Repayment Works
2M7 offers two repayment structures. Fixed payments mean the same amount is debited on a regular schedule, with the option to request a reduction if revenue drops significantly. Flex payments are tied directly to a percentage of daily sales, so repayment amounts naturally rise and fall with business activity. The flex option is available to businesses that process daily credit and debit transactions.
Before signing, the total cost of capital is presented clearly. There are no origination fees, application fees, interest charges, brokerage fees, annual maintenance fees, or early repayment penalties. The cost disclosed upfront is the only cost.
Once a business is an existing client, requesting additional funding is straightforward. Clients can contact their dedicated representative directly by phone or text, and if approved, funds can be deposited within 30 minutes.
What Business Owners Have Said
"2M7 greatly guided us through the entire process of funding for our small business. We're extremely pleased with their clear explanations of what to expect and their steady commitment to helping us." -- Kotryna Zis
"Had the pleasure of dealing with 2M7 and Yakov, who helped our business get approved with funds in my account the next day. Greatly appreciate their help. Everything that we talked about was provided." -- Brady Douglas
"2M7 has been so wonderful to work with. Every employee I speak with is incredibly helpful and kind. I would never have been able to get back on my feet after COVID-19 if not for them." -- Jenny Watson
Is a Merchant Cash Advance Right for Your Business?
A merchant cash advance is not the right fit for every situation. It works best for businesses that have consistent revenue, need capital quickly, and want repayment terms that reflect how their business actually performs rather than a fixed schedule set by a lender.
Canada's government financing programs reached fewer than 6,500 businesses last year in a country with over a million small businesses. For many owners who fall outside the criteria those programs require, alternative working capital solutions are worth exploring.
If your business is based in Canada, has been operating for at least three months, and brings in at least $15,000 per month in revenue, you can check your eligibility with 2M7 without a lengthy application process.
Related reading: What is a Merchant Cash Advance? 2M7 vs. Other Merchant Cash Advance Options The Truth About Small Business Loans 5 Ways to Market Your Small Business on a Budget
Sources: CFIB: A Divided Year, Small Business Performance in 2025 ISED: Canada Small Business Financing Program, Overview and Highlights 2024-25 Retail Insider / Restaurants Canada: Foodservice sector added nearly 24,000 jobs in 2025 BMO: Industry Update, Canada Truck Transportation, Fall 2025 Retail Insider / Omnisend: Canadian E-Commerce Orders Rose 20% in 2025
