The Benefits Of Merchant Cash Advances Over Business Loans

When it comes to securing financing for a small business, there is a variety of options available. Two popular options are a merchant cash advance (MCA) and a business loan. While both can provide the necessary funds for a business to grow and expand, there are some key differences between the two. They make an MCA a more attractive option for many Canadian small businesses.

Merchant cash advances give quick access to business funding.

One of the biggest benefits of a merchant cash advance is that it is a much quicker and easier process to secure funding. Unlike a traditional business loan, which can take weeks or even months to be approved, an MCA can be approved and funded in as little as 24 hours. This is especially beneficial for small businesses that need to secure financing quickly in order to take advantage of timely opportunities or to cover unexpected expenses.

Merchant cash advances are more flexible.

Another major benefit of a merchant cash advance is that it is a more flexible option for businesses. With a traditional business loan, the borrower is required to make fixed monthly payments regardless of their sales or revenue. With an MCA, the repayment is based on a percentage of the business’ daily credit card sales. This means that the business only needs to pay back the advance when it has the funds to do so. As a result, it is a more manageable option for businesses with fluctuating cash flow.

In addition, merchant cash advances typically have less strict qualifications compared to traditional business loans. Small businesses with poor credit or limited financial history may find it difficult to qualify for a traditional loan. Therefore, an MCA may be a more viable option.

Merchant cash advances are easier to secure.

MCAs have a higher approval rate as they are based on the company’s future credit card sales. Issuers are not likely to consider the business’ credit score or financial history. This makes it a great option for small businesses that have been in operation for less than two years or have bad credit.

“In February (2022), big banks approved 14.7% of loan requests, down from 28.3% in February 2020,” reports Mae Anderson of The Associated Press for CityNews, “And small banks approved 20.5% of loan requests, down from 50.3% in the same month in 2020. That’s according to the online lender Biz2Credit, based on data from more than 1,000 small business owners who applied for funding on the company’s platform.”

Apply for a merchant cash advance today!

A merchant cash advance is a great option for Canadian small businesses looking for quick and flexible financing. With its easy application process, flexible repayment terms and less strict qualifications, an MCA can provide the necessary funds for a business to grow and succeed. Merchant cash advances are becoming increasingly popular among small businesses in Canada, and for good reason.

Contact Unity Payments to learn about our merchant financing solutions. We provide fast, easy and secure working capital for any business need. Our program offers up to $250,000 in simplified and reliable funding. For more information or to get a free quote, please don’t hesitate to call us at 1-800-661-3761 or email us at to learn more.