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3 Signs You Should Consider a Merchant Cash Advance

3 Signs You Should Consider a Merchant Cash Advance

3 Signs You Should Consider a Merchant Cash Advance
30
Apr 2019
27
Jul 2026

A merchant cash advance (MCA) is a popular alternative to the more traditional business loan, but these cash advances are not a perfect fit for every business owner. If you are looking for different financing options, consider some of the main reasons small business owners decide to choose an MCA.

MCA Repayments Are Within Sight

The repayment of a merchant cash advance is generated through a percentage of future credit and debit card revenue. If you believe that you will have the funds to repay the MCA in a reasonable time period, an MCA is a great option for a temporary cash infusion.

You Need Funding Fast

The approval process for an MCA compared to a business loan is considerably faster. Most MCA providers can approve applications and provide funding within 24-48 hours. If you know you have money coming in, but need a little extra to cover over a cash flow gap, to buy equipment, or to invest in business growth, an MCA is a great option.

No Restrictions

Some traditional lending options may put restrictions or dictate how you can spend any money you have borrowed. With a merchant cash advance, business owners are free to do what they need to do, and the approval is based on future revenue projections of the business, not its current value.Not having a constant supply of capital on hand shouldn’t stop you from growing your business. We can help you determine whether an MCA is right for you. Speak to an expert today.

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June 14, 2021
September 20, 2026

5 Reasons Why Merchant Cash Advance Works for Small Businesses

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.

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April 28, 2026
September 30, 2026

How To Get A Business Loan With a Bad Credit Score?

As a small business owner, when you go to a bank for a business loan, instead of looking at the performance of your business, the bank will check your personal credit score first. This means, even if your business is performing well and profitably, a fair credit score of 600-650 could prevent you from getting a small business loan. A credit score of under 600 portrays you as a high-risk borrower and will make it nearly impossible to borrow even a small loan. A low credit score stops business loans being disbursed to profitable and stable businesses. Bad credit history will follow you and your business for years. For example, you may have owned a successful business for a few years and now you are looking for funds to expand into another city or purchase more equipment, but when you visit the bank, the loan officer turns you away. Why? The answer is easy – his decision is based on your poor personal credit history.

Credit scores

There is no standard scale that defines your credit score. That evaluation varies from a credit agency to a credit agency as they set their own criteria. A credit report from Equifax may give a person one number, while a credit report from another institution will very likely suggest a higher or lower credit score for the same person. Credit scores in Canada are officially assessed by two entities: Equifax and TransUnion.

  • The higher the credit score, the safer it is to lend to you
  • Credit scores typically range from 300 to 900

Credit score brackets:

  1. 800-900 – Highest bracket; excellent credit history
  2. 700-799 – Very good credit history; lowest interest rates available
  3. 650-699 – the Lowest score that can receive standard loans
  4. 600-649 – Fair score; higher interest rates applicable
  5. 300-599 – Low scores; less likely to receive business loans

Therefore, if you have a credit score of 649 or lower, it will dramatically reduce the chance of your business loan being approved. Since major banks first look to the business owner’s personal credit score, even exceptional business performance may not make you eligible for loans, or high-interest rates may apply to you.

What happens if you have a low credit score?

If the borrower has a bad credit score, other than a higher likelihood of being refused a loan by the major financial institutions, there are a few other ramifications:

  • Higher interest rates on loans and lines of credit
  • Difficulty finding business premises
  • Security deposits required by utility companies
  • Higher insurance premiums for business assets

Private lenders help small businesses with bad credit history get loans

Fortunately, there are ways of getting business loans for your company even if you - the borrower - have bad credit. To get small business loans with bad credit history, private lenders are one of the best options. These are more local lenders, better tuned to market conditions, who offer more flexible loan options. There are many private lenders that can provide small business loans. Bad credit history or credit score will make little or no difference to the loan, depending on the type of loan you opt for. Moreover, the application process is much easier and repayments are more flexible. It is possible that a private lender will ask you to open a business bank account with them before they provide you with funding.

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How to get a business loan with a bad credit score?

Merchant cash advance (MCA) lenders provide cash advances, customize private terms and business equity line of credit to small business owners. This would be the best way to get a business loan with no credit assessment, and beneficial repayment terms if you happen to have a bad credit history. Instead of checking your personal credit score, a merchant cash advance provider assesses your business’ performance and monthly credit card sales.The MCA lender will give you an upfront sum of cash in exchange for a percentage of the business’s daily credit card income.  The MCA lender will tie into the credit card processor directly to settle credit card payments so the business owner does not have to worry about missing the payments or dealing with administrative processes. There are many pros and cons of having MCA but regardless of that, it is still considered as the best way to get business fundings.A private term loan gives you the same perks as a small business loan from a major lending institution. However, the private lender does not give the same weight to your bad credit when deciding on the small business loan. Instead, the lender mitigates the risk with fixed daily repayment terms.A business equity line of credit is much less reliant on the credit history of the business owner. Therefore, if you have a bad credit history and require financing for your business, you can use your equity in the business as collateral. A business equity line of credit helps businesses resolve their cash flow issues, though it does require putting up a part of your ownership as collateral.

If the funding is for equipment specifically, our guide to bad credit equipment financing in Canada compares leasing, vendor financing, government-backed programs and merchant cash advances, including how their costs differ.

Start-up bad credit business loans

For entrepreneurs with bad credit seeking business loans for their start-up, private lenders and alternative lending are the best options. Where small business loan applications at major institutions have a less than 25% chance of approval, merchant cash advance (MCA) approvals stand at over 75%! This is because MCAs do not evaluate the business owner’s personal credit score, and only take into account business performance. Besides that, MCAs can be approved within 4-6 hours.Government loans and grants are also great options. Both have flexible repayment terms and offer additional business support to small entities. However, some of the government loans may require a good credit history and may have strict eligibility criteria.

Using business loans to rebuild your credit

Apart from using funds to expand their business, business loans can help borrowers improve their personal credit scores. Once you opt for an equity line of credit or a private term loan, make sure to pay on time and your credit score will improve over time. As a result, the better your credit score is, the lower your interest rates will be and you will have a greater chance to access financial lending markets.Borrowing is an inherent part of any business regardless of its size and the industry it operates in. Major financial institutions and private lenders usually lend to businesses with exceptional credit histories opposed to those with a bad one. Don’t let your bad credit history stop your business from getting the financing it needs. Options such as a merchant cash advance (MCA) will provide you with the required funding, as well as improve your credit card history in general. If you think it might be a good solution for you, do not hesitate to get in touch with us.

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October 21, 2026
October 28, 2026

The Real Cost of Waiting: How Delayed Funding Affects Small Businesses

A supplier offers you forty thousand dollars of inventory at sixty cents on the dollar, but only if you can wire the deposit by Friday. A commercial tenant space opens up two blocks from your restaurant's biggest competitor, and the landlord wants a signed lease within the week. A trucking client needs three more units on the road for a contract starting next month. These moments do not wait for anyone, least of all a bank.

Most business owners understand financing math in the abstract. They know interest rates, they know what a personal guarantee means, they know roughly what their credit score should look like. What fewer owners have priced out is the cost of time itself, the weeks that disappear between applying for a loan and actually having usable cash. That gap is not neutral. It is where opportunities go to die.

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Banks Are Approving More Loans, Just Not Quickly

There is a common assumption among small business owners that traditional lenders have tightened up and that is why approvals feel so hard to come by. The data tells a more complicated story. According to ISED Canada, the approval rate for small business debt financing actually climbed to 97 percent in 2025, up sharply from 89 percent the year before, and the share of requested funds that lenders actually authorized also reached 97 percent, the highest ratio recorded since 2015.

Read that again. Banks are saying yes more often than they have in a decade, and they are authorizing close to the full amount requested. So why does it still feel like pulling teeth to get money into your account?

Because approval and funding are two different events, separated by underwriting queues, document requests, credit committee schedules and internal risk reviews that were never built with urgency in mind. A "yes" that arrives four to six weeks after you applied is not the same as a "yes" you can act on. For a seasonal retailer or a contractor bidding on spring work, a technically approved loan that lands after the window has closed is functionally a rejection.

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What Slow Money Actually Costs

Owners tend to think about the cost of financing in terms of interest rate alone. That is only half the equation. The other half is opportunity cost, and it rarely shows up on a spreadsheet until it is too late to fix.

Consider inventory. A retailer who cannot move fast on a bulk buy loses the margin on that deal permanently, and often loses shelf space to a competitor who could move. According to BDC, businesses that misjudge their seasonal cash position frequently end up carrying either too much stock, which ties up capital and risks obsolescence, or too little, which means missing the sales window entirely. BDC points out that a seasonal operator such as a restaurant can see monthly sales swing from fifty or sixty thousand dollars in the off-season to two or three hundred thousand at peak, a gap wide enough that a few weeks of delayed working capital can decide whether that peak season is profitable or merely busy.

Contractors face a version of this that is even less forgiving, since weather windows and material costs move on their own calendar regardless of when a bank finishes its paperwork. A framing crew that cannot lock in lumber pricing before a spring increase, or a contractor who cannot mobilize equipment in time for a short building season, is not losing a little margin. They are sometimes losing the entire project to a competitor who financed faster.

Trucking operators know this rhythm too. Fleet expansion, trailer repairs and fuel costs do not pause while an application sits in a queue, and a truck parked waiting on financing is a truck earning nothing.

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The Real Price Tag Is Compounding, Not Fixed

The mistake most owners make is treating a slow approval as a one-time inconvenience rather than a recurring tax on the business. Every deal missed because funding arrived too late becomes a data point that shapes future decisions, usually toward caution. Owners stop chasing good opportunities because they have learned, through repeated frustration, that their capital cannot move fast enough to capture them. That is a much bigger loss than any single missed inventory deal. It is a business permanently operating below its own potential because its financing infrastructure cannot keep pace with its ambition.

Add to this a macro backdrop where interest rates and lending appetite continue to shift year over year, and the businesses that win are not necessarily the ones with the best credit profile on paper. They are the ones whose capital access matches the speed of their market.

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Where 2M7 Fits Into That Equation

This is precisely the gap 2M7 was built to close. We work with restaurants, retail operators, construction and contracting businesses, and trucking companies all across Canada. 2M7 offers Merchant Cash Advances built around one principle: fast business funding is not a luxury feature, it is the entire value proposition. We work with owners who have been turned away elsewhere because of bad credit, structuring financing around actual business performance and cash flow rather than a credit score alone. 

We are not a bank, and we do not operate on bank timelines. Where a traditional lender might take weeks to move an approved file into funded cash, our process is built to get capital into your account in days, because a deal, a deposit deadline or a seasonal window rarely gives you weeks to work with.

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The Decision Is Simple

If your business has ever missed an opportunity because financing took too long, that is not a one-time bad break. It is a pattern that will repeat until you change which lender you call first. Contact 2M7 directly, walk us through what you need funded, and find out what your options look like when they’re on time.

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