Canada does its best to offer its many small business owners with resources and opportunities to run successful small business. This is demonstrated, as in 1961 the Small business Loans Act introduced the small business loans program. And in 1999 the act was revised to produce the Canada Small Business Financing Act (CSBF). This program states its objective as ?to streamline loan administration, improve its ability to achieve cost recovery and to extend financing that would otherwise have been unavailable to small-and medium-size enterprises.?
This act has allowed for years of financing for small businesses in Canada, but for small business owners who still need funding after receiving a small business loan, or are not eligible to receive a small business loan, there are other funding options available.
One of these options is the merchant cash advance. There are a variety of factors that make merchant cash advances a great funding choice for small business owners.
First, under the CSBF Act, the maximum loan amount that a small business can access is $250,000. Some merchant cash advance lenders can provide loans of up to $600,000, and a small business owner has the opportunity to access this amount of money depending on the dollar amount of monthly credit card sales his/her business processes.
Second, loans granted under the CSBF Act can only be used to purchase real property and immovables, finance leasehold improvements or improvements to leased properties, or to purchase or improve new or used equipment.
Most merchant cash advance lenders will impose no restrictions on how a merchant cash advance can be used. As all businesses are different, each business may have a unique financial need, and a merchant cash advance leaves the decision of how to use lent funds to the borrower.
Finally, merchant cash advance lenders do not set interest rates, or require fixed monthly payments. As customers make credit card purchases, a small percentage of each sale goes towards the repayment of the merchant cash advance. Therefore, borrowers never need to remember to make a payment, or worry that they will not be able to afford a payment, because the payments adjust with the business? sales. Merchant cash advance lenders only get money when your business makes money.
If you?ve already received a small business loan and find yourself still in need of additional funding, consider a merchant cash advance. If you don?t qualify for a small business loan, consider a merchant cash advance. If you are a small business owner who needs money to finance any type of business venture for your existing merchant business, consider a merchant cash advance.
David Castro -
About the Author:
David Castro often writes articles about Small Business Loans for Merchant Resources International ? To Learn more Visit Us at http://mymerchantcashadvance.ca/
Source: http://smallbusinessgrants.businessempire.biz/2011/04/22/small-business-loans-in-canada/
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