Business stands on the steady flow of cash. If you have ever started a business of your own, then you are well aware of the importance of money to maintain the health of the business. As per the report of the studies on business cash flow, 2 out of three businesses in Canada suffer from a cash shortage. Cash advance in Canada can play a major role in sustaining the small businesses which rarely get proper business loans from the banks.
What Was in the Study?
The online study on small business cash flow report was conducted by Wakefield Research. The research has been conducted among 500 small businesses which have 0-100 employees. The study has elaborated that cash flow worries have made at least 67 percent small business owners insomniac even if their businesses never actually faced cash flow deficit. The small businesses carry on with cash cushion so thin which threatens them to become out of business in every few months. The most convenient way the small businesses can keep their cash flow is by taking the help of cash advance in Canada.
Pros of Taking the Cash Advances
The cash advances provide the required cash to the small businesses which they can use to expand their business or invest in the required fields. Check out the following points to get to know more about the merchant cash advances.
Available to Businesses Which Have Bad Credit
Have you ever gone to a bank to seek a loan?
If you have, then you understand the importance of a good credit report for the required loans. The problem for the small businesses is that they have just started their journey and does not have the time to gather good credits. The banks, simply for this reason, can refute an application for a loan. Cash advance in Canada plays an important role in this situation. It looks forward to the sales that are going to take place in the future. Thus, it provides cash to small businesses with sharp futures without looking at their credit scores.
Easier to Get the Approval for the Loan
The underlying criteria of the merchant cash advances are so simple that any small business that is in the nascent stage can fulfill them. If only your business has suffered bankruptcy, then it will be difficult to secure a cash advance in Canada. If the age of the business is less than 6 months, the merchant cash advances might not get approved.
Receive Cash Fast
The application process of cash advances is very fast. Therefore, it is not surprising that the business owners get the cash faster than any other loans. In some cases, the cash can be transferred even in 24-48 hours after the application procedure is over.
There is No Interest
You have to understand that merchant advance is not a loan. Thus, no interest is imposed on small businesses. Yes, you have to pay the factor rate, but it is not interesting. In simple words, the money that you have borrowed is the money you owed at the end of the day.
Like any other financial advances, cash advance in Canada has also some cons. The pros outweigh the cons in so many ways that merchant cash advances are becoming one of the most favored ways to borrow money. However, you should talk to an expert to know all the avenues before making a final decision.