Which Industries Benefit the Most from Merchant Cash Advance?

May 2026

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.

Get Approved For Funding

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.

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

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March 15, 2021

May 12, 2026

How to prepare your business for capital raised

You have worked hard to start up your business. After perfecting your presentation, you have been able to raise some capital. Congratulations! Now what do you do? Make sure you don’t waste this opportunity to launch your business right. Here are five ways to prepare your business for capital raised.

1) Know your “runway”

Your business’s “runaway” is the amount of time your business has before it runs out of cash. First, you should look at your business’s monthly expenses and your capital raised and then, determine how much time you need in order to gain a steady stream of income. Ideally, you will want your business to have a six-month “runaway.” With six months’ worth of operating capital, you can deal with various disruptions that will come with operating a new business.

2) Use a budget management tool

One of the best ways to manage your business is to use a budget management tool, and with the right budget tool, you will be able to manage your expenses and identify opportunities to save money and run leaner. There are a number of top budget management tools that are designed around start-ups. Some of the top budget management tools include the following: Quicken - Quicken is great for smaller starter-ups with its easy-to-use software and interface. Centage - If you have more complex operations, then Centage is an ideal budget management software system. Lola - Lola is a great budget management tool if you are dealing with a number of expense report.

3) Secure the best prices from vendors

You want to make sure that your capital goes as far as it can possibly go. Therefore, you will want to control your costs. One of the best ways to control cost is to be able to get the best prices from your vendors. Be sure to get multiple quotes from as many vendors as possible. Also, if you are planning to use a vendor for the long term, try to negotiate better prices to help you stretch your capital.

4) Have a business plan

It’s a good idea to have a business plan. In fact, a business plan is like a road map that shows everyone in your company, as well as your investors, what is your plan to grow income and become profitable. If you have no experience writing up a business plan, don’t worry. There are a number of business plan templates that you can use to help you get started. Here are a couple of places where you can find business plan templates:

5) Have an emergency or contingency plan

You want to make sure that your business has a plan for the unexpected. In fact, situations such as natural disasters or disruptions in manufacturing or inventory can spell disaster for your business. The best way to plan for an emergency is to set aside a portion of your capital raised and set it aside for emergency situations. That emergency money can save you in situations where you need money fast and you may not be able to raise further capital.

Getting your capital for your business going

Now that you have the capital that you need for your business, it is time to get going. Be sure to have a plan, set a budget, and watch your spending. Also, spend your business capital the right way and you will be well on your way to start-up success. If you require a merchant cash advance for your business, 2M7 Financial Solutions are here to help you out. Request a quote, we will be happy to assist you.

March 30, 2021

May 12, 2026

How to Get Business Financing With Poor Credit

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.

October 18, 2021

May 12, 2026

5 Ways to Boost Your Business Cash Flow

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.