What is a Merchant Cash Advance?

2M7’s merchant cash advance is designed to meet the financial needs of Canadian small businesses. It allows you to use a small percentage of future sales to cover the working capital that you need, today. 2M7 Financial Solutions provides a simple borrowing and repayment experience.

We provide up to 125% of your average monthly sales, which can be deposited into your account as soon as the same day!

For example, if your business generates $25,000 in monthly sales, your business would be eligible for up to $31,250 as a merchant cash advance.

With our Split Program, a “withholding percentage” would be automatically deducted from your daily transactions until your advance is fully repaid.

No interest, no hidden fees and your repayments are based on your sales.

How Merchant Cash Advance Works

Split Program

The payments are simple, each day we collect a small % of your sales until the full amount is paid back. That way, we only get paid when you get paid. This makes a merchant cash advance a very cash flow friendly cash advance funding tool!

This % is the most important number in determining if these types of business cash advance financing are right for your business. The withholding % ranges from 4% – 30% of your daily sales, and would vary depending on a variety of factors, including the amount of the cash advance, revenue, type of company, industry, etc.

NOTE: The withholding % should not be confused with an interest rate. It is the number of your daily sales that gets collected and put towards paying your financing. It has nothing to do with your cost of capital.

There is a cost of money that gets determined as a factor rate. Meaning we assess a one-time cost based on the value of sales you might have in the future. Other than the factor fee, there is NO other costs on the funds.

The way a factor rate is calculated is as a multiplier of the amount you receive. The Factor rate will typically fall between 1.18 – 1.48.

Your advance amount is multiplied by the given factor rate to determine the total amount that must be paid back. For example, if you’re given $25,000 at a factor rate of 1.30, you’ll need to pay back a total of $32,500 (25,000 X 1.30 = 32,500).

The factor rate is determined based on a large number of factors including industry, location, years in business, number of employees, amount of funds being provided for credit card merchant financing, etc.

As a merchant lender & merchant cash advance company in Canada, We use our propriety software to create a credit score for your business (Unrelated to traditional credit scores) and thus determine the factor rate for your business as a cash advance lender. The longer we work with your business and the more we understand your business’s particular needs no matter, the more funding we will be able to give and the lower the factor rate will go and can offer some best business cash advance financing.

Please keep in mind that a factor rate is different from an interest rate in that a factor rate doesn’t take time into consideration. Interest rates are calculated on an annualized basis. In the case of a factor rate instead of a fixed payment, the speed at which you pay back is based on your sales and performance of your business and therefore cannot be computed to an interest rate.

Getting approved for a business cash advance can take as little as a few hours, or up to two business days depending on how accurate and complete your application is. To get started with a merchant cash advance you will need to provide basic information about yourself and your business. This will include:

  • A government-issued photo ID
  • Your merchant ID number
  • Recent bank statements
  • A void cheque

Also, you will need to have a business bank account where your cash advance will be deposited. If you wish to apply today or have any questions, feel free to fill out the short quote form here.

The process:

  • Once your application is approved we will deposit the merchant cash advance directly into your bank account.
  • We will connect directly with your payment processor to collect payments. 2M7 Financial Solutions works with most major payment processors in Canada, and the process is completely seamless and transparent.
  • You will be able to monitor and manage your repayments online through your 2M7 account.

How Do We Differ







Quick overview of a merchant cash advance

A merchant cash advance is the provision of a set amount of money, determined by your existing credit/debit card payments.

Once the amount of the advance is accepted, a percentage (known as a withholding) will be proposed. This can range anywhere from 4% – 30% of your daily sales and is determined by a variety of factors. Note: the withholding percentage can vary based on whether your sales are higher or lower than normal, in order to assure you don’t pay more then you can afford.


Why Merchant Cash Advance

The application process for a merchant cash advance is quick and simple. Moreover, it does not affect your credit score. As a business owner, you have the freedom to choose how and where you want to apply funds received. Many 2M7 clients use their business cash advances towards operations such as:


Get liquidity to cover expenses


Buy, upgrade and repair business equipment


Buy stock and increase inventory


Redesign the facility


Expand to a new location


Hire employees to grow business


Invest in marketing and advertising campaigns


Consolidate and pay off existing debts


Expand the line-up of products and services


Buy or upgrade commercial vehicles

Since 2008, 2M7 Financial Solutions has been helping small and medium Canadian businesses get quick and easy access to financing solutions. Unlike other lenders, our merchant cash advance specialists take great care of our customers. That is why we have a 97% approval rate on all submitted applications. If you think your business could benefit from a business cash advance, speak with one of our specialists today.

Does My Business Qualify?

In order to qualify for a standard funding package, your business needs the minimum:





Speak to a specialist today!

Speak to one of our trained specialists to better understand what options we have for your business.

  • This field is for validation purposes and should be left unchanged.