Starting a business from scratch can be very difficult. Especially a business that requires a lot of start-up capital. Banks usually require a lot of documents and there is huge amount of paperwork to be done.
Canadian Business Financing can provide you with a safe provision of capital for starting up your own business, if the merchant qualifies. We provide funding to all kinds of businesses, be it big, medium or small and while most qualify, there are underwriting guidelines that have to be adhered to. We do not have funding sources for all, business types, and all situations, but anyone and any size of the business can qualify based on the underwriting criteria. We provide the amount the merchant qualifies for, not the required or demanded amount the customer requests. Those who come to us with a loan requirement for his/her business, may or may not get the full amount requested, depending on the qualifications of the merchant and his or her business, and current situation.
All our dealings are genuine and there is nothing hidden. We believe in ethical practices and providing services that are genuine and bounded by the law at all times. With any funding provider, or agent, nothing is in stone, until the funding company, puts in in writing, for the merchant to review and sign the contract.
Merchant Finance Connection provides business funding to the all kinds of businesses in Canada and The United States Of America. The primary requirement is that a business needs to be in business, for a minimum of 6 months, and some funding providers require 9 months. Irregularities are understandable and we accept that, after all we are all human, but can cause a RED Flag with the funding providers underwriter, so it’s best to have all your ducks in a row, before applying. If there are discrepancies in your accounts and you worried that you may get rejected for funding, then, get it handled before you submit and application and docs to any company.
Hence if there is absolutely any problem and you are in need for some capital either to start a business or maintain a business in the states or in Canada and you have nowhere to turn to, then come to Merchant Finance Connection and we will provide you with the gateway to the funding that you need very easily and with the least amount of hassle that we can. Whatever might be the reason or need, or however big or small the business or amount is, we assist you to always find the solution with Canadian Business Financing programs.
Small or medium sized enterprises need finance to expand their business and a financial mechanism I essential to meet the needs of small businesses. Therefore, CSBFP, Canadian small business financing program has encouraged financial institutions to lend a helping hand to small business owners. Canadian small business loans improve and expand small enterprises by helping to secure up to $500,000. Thus, there are some expectations which need to be met before the loan is sanctioned.
Requirements which need to be fulfilled to obtain a loan :
If you take yourself other side of the desk then you will definitely like to know why and for what reason you should give the loan to the opposite party. Moreover, you would also like to know about the chances of payback and will it be on time or not? Similarly the key of Canadian small business loans is to have all the answers to the questions of lenders and to do this, it is vital to prepare. Yes, you would need to prepare and organize all the documents properly which will explain the need of a loan and confirm that you will be able to repay on time. The second thing is to discuss the plan of business with the lender which will explain why you need the loan and what you plan to do with the loan.
The most important thing is paying back and the lender will be interested to know the cash flow projections which will help the lenders get proper financial data that will help in paying back the loan. A financial statement which will also show your assets and debts will be required to process the loan. To qualify for Canadian small business loans the other required documents will include your credit report and past tax returns of the business which may or may not be needed depending on the terms of the loans.
Benefits of loans :
There are several benefits of Canadian small business loans which help small business people to grow and expand their business. Moreover, there are different types of loans available in the market which can be sanctioned on minimum documents. The loans can be applied at any bank or credit union in Canada. Those who are pioneers can make use of start-up financing program and get the early growth phase of the business accomplished. This can be up to $100,000 dollars to set up the new business by acquiring assets or to take the franchise.
Those who find it difficult to get traditional business loans can get Canadian small business loans of a small amount of $10,000 dollars. These are known as micro loans. There are even community loan funds which can be sanctioned from non profit organization. There are loads of institutions who help women entrepreneurs to accomplish business perspectives without any difficulty. Thus, there are ample of ways to get the loans and each individual can get it easily as per his own limitations.
For young entrepreneurs as well, there are several institutions which support the business by financing them in an easy way. Taking a small business loan can be helpful to set up the business plan or add to working capital which can further help the business owners to reap high profits.
The economy has not fully recovered and many people are still unemployed and many people are busy looking for jobs every day. This has led many people into looking for other means of making money. One of the methods that many people have opted for is entrepreneurship, however starting a business can be challenging when you do not have enough money to start. In the past people have used commercial banks to get funds to start a small business however this is not easy in the present day.
Some methods that you can use today to finance your business include lending networks known as peer- to- peer. This method links you to another individual who is willing to lend money at an interest. There are many companies that link individuals who need capital with those that have money to lend.
A potential loan seeker needs to make a request to lend a certain amount of money which is to be paid with interest. Then the individual who will fund the loan approves and then the businessman can fund his business. Then a lender is paid by the loan seeker over a period of time making it easy to pay back. If a loan seeker has a good rating then it is possible to use this service many times successfully.
Another method that has existed for the longest time is borrowing money from family and friends. Most people in the present day are not very enthusiastic about getting a loan from their family and friends fearing that they may end up destroying their relationships. However, it can be very effective if done the right way. By the right way I mean choosing who to borrow from carefully by ensuring that they are financially stable. You should also always ensure that you meet the agreement by paying back the borrowed cash on the agreed date. You should go far and beyond to ensure that the other party is fully comfortable with the deal.
If you are not particularly comfortable about borrowing money from your friends and family you should consider using your retirement fund to fund your business. There are many people who have succeeded using this method so you can be guaranteed that it works. It is also possible to use your retirement fund and combine it with cash from other sources like loans. It is not always easy to invest money in a business you have no control over such as the stock market. Therefore investing your retirement fund in a business you own is much more preferred.
If you already have a small business or you are starting your own business, alternative funding sources for business are vital in getting the capital to do it. There are many people willing to sell their businesses and there lies so many opportunities however without capital owning such a business will only remain to be a dream. There are many other alternative means of financing your business that you should put into consideration before making the final decision.
Many people who own businesses at some point will require extra funding to ensure the capital base is increased. With this need, the only option is to look for an alternative business financing from recognized companies apart from the usual bank loans. It is rare that today’s economic situations will allow a business owner to fully finance their businesses all alone without involving other parties and these calls for extra financing.
There are different types of alternative business financing for clients. With this, they have to come with the best terms of service that will work well for the business. The following are sources of business financing.
Small and big businesses can benefit from this alternative business financing. Usually it involves a collective bargain from individuals who come together either through online networking, and pull the necessary resources through support from other big organizations. There are specific online sites which are used in the process of Crowdfunding. The main advantage of this method is that there is no limit to the amount of money that can be collected to fund the business and many times it will exceed the required cash.
This will depend on the sellers’ willingness to make some financing when it comes to selling. Here the seller will take part of the selling price by paying cash and the balance will be paid as promissory notes. These notes will be paid back by the buyer but with interests at an agreed period of time like fours years.
Merchant advances on cash
This is a quick source of funding which is ideal for the starters and the service industries which will find it hard to start with expensive equipments and the real estates. The main setback of this is that there are high interests, however they are quick source of funds.
This is another ideal alternative business financing option. The retirement savings can be borrowed for the business expansion. This has become an important and effective way of investing the entrepreneurial ideas with success. However one cannot take the entire retirement package as investment but only a limited amount as allowed by law. This method will work in combination with other sources of funding like normal loans.
There are some businesses which will use this alternative business financing for funding. This means the business owner selling some outstanding invoices to a chosen financier. This is called the factor and is offered at a discounted rate. Upon the completion of the invoice in full amounts, the factoring will profit a lot by getting the money badly needed.
Peer to peer lending options
The peer to peer plans are use to eliminate the traditional banking loans. It allows the business to seek for the alternative business financing directly from other potential lenders. The advantage of this is that one can directly negotiate to the terms of services offered like low interests and the repayment plans. The success of this will highly depend on the credit history.
The current business finance options is full with the best opportunities to choose from and will allow one to direct the way the business will be done. With many options to choose from there is no need to let the business go under the bridge when financing can be arranged.
Acquiring merchant capital from a funding provider, also called a “funder”, can be simple, and there are many providers of merchant capital.
However, funding providers, have different programs, all of which a merchant may or may not qualify for, or may or may not want the use.
There are some pitfalls and issues, that a merchant looking for funding should be aware of.
First, look for a company that will issue more money, or a second advance, when partially paid back, without paying off the first, and recharging for the whole amount again.
Second, the agent contacting you, is getting paid by the funding provider,
once the merchant receives their funds or the working capital , so any agent fee being charged by the agent, is above and beyond, anything necessary to get funding, and should be looked at, as an excessive charge.
The merchant should not authorized, extra fees to the agent, via ACH or what other mean may be used! The merchant is paying for the funding through the fee charged by the funding provider. There are agents and companies that don’t charge excessive fees, that take advantage of unsuspecting merchants.
Third, if the company acquiring the funding for the merchant, claims they are the funding provider, and the paperwork you are required to sign, has the name of some other entity or party, this should be questioned.
You need to know who you are doing business with. If a company is a third party, and the funding is coming from someone else, the third party company is being paid by the company actually doing the funding, and you should not authorize any fee above and beyond the cost of the money that you agree to, in the contract that the “Funding Provider” that is named in the contract is charging.
Don’t be mislead!
Your cost of the money, are the fees that is disclosed in the agreement, with the entity that is actually doing the funding, and who the merchant has the agreement with, not the agent or agents company.
If the agent offering to acquire merchant funding, does require a fee, it is recommended that you connect with MerchantFinanceConnection.com, as we can direct you to a funding provider, where the funding, can be acquired without the extra fee that many agents and companies charge.
If the company that the agent is sending you to, to get funding, is charging, above the cost of the money funded, a fee other than simple account set up fees, ranging a few hundred dollars, or less, you are with the wrong company. Move on and find a company that will not charge these excessive fees, as they are already charging you a fee for the monies advanced, and anything above or beyond that should be considered out of line!
~Welcome to the Merchant Finance Connection Blog~
Shedding some light on the Funding Industry.
As we move forward, we will be trying to enlighten the merchant,