Alternative Financing – A Life Line for Small Businesses
All small businesses across Canada share one common challenge – access to credit, and for multiple needs. The structure of Canada’s financial services industry doesn’t help the situation, with the dominance of the “Big Five” owning so much of the marketplace for operating facilities (operating accounts, etc.) yet failing to offer equal access to credit. This left the small business borrower with few options. At least until the advancement of financial technology (FinTech) and the emergence within the financial services lending industry, of these nimble, tech savvy small business lenders.
Today, this important sector provides significant amounts of credit every day to small businesses across the country. Within this peer group the established position of Merchant Growth at the forefront is for reason – a dominance of consistent lending across the sector for more years than anyone else in the peer group, a proven underwriting formula to consistently provide credit through challenging markets, including the 2020/2021 COVID situation, and a portfolio of not less than 100 sub-industry categories in which they serve.
With a value proposition of “quick and efficient access to credit, with transparency”, the company repeatedly serves its customer base, often multiple times, with reliable access to credit.
Merchant Growth Offers Unique Products to Support SMBs
The development of the fintech small business lending segment has for many years been defined as progressive small businesses themselves, providing a single lending products. While in itself valuable, the challenge has been for the small business owner to understand the difference of these products, and often being presented at the same time to solve for a similar purpose.
With a track record now of financing over 10,000 customers across all provinces with over a half a billion dollars funded, we have supported small businesses in a very significant way. With the earning of many “Badges of Honour” along the way, Merchant Growth is proud of its position as the brand of choice for small businesses. Providing multiple products, trust, transparency and undoubted customer service, Merchant Growth continues to support small businesses who need short term capital support and a reliable partner to see their business succeed.
Merchant Growth, with a strong technological capability, built over many years of development and practical application, has a suite of products designed to meet the different needs of the borrower such as:
Flex Payment Options
Merchant Growth offers a Flex Financing Solution that turns your small businesses future cash flows into immediate working capital that you can use right away. Your payment automatically adjusts to match your small business’s revenue cycle. Your small business can pay more when you’re busy, and less when you’re not.
Fixed Loan Structures
Merchant Growth also offers a Fixed Solution, designed to align to traditional business flows as some business owners feel they’re in a better position to budget monthly expenses and future cash needs with payments. It’s ideal for small businesses who might not have debit/credit sales or those that prefer a fixed payment – same amount paid every period. A fixed daily payment is often better suited for small businesses that have sales which are primarily generated through cheques or deposits. Effectively a business loan, funds are provided to your business up-front, and a daily or weekly payment is made automatically to repay the balance, same amount every month.
Line of Credit
The Line of Credit gives Canadian small businesses the freedom to access capital to meet their growth potential. The line of credit has flexible payments, and interest is only paid on what you draw. The maximum line of credit amount will be 25% of the max qualifying amount that your business qualifies for and your business must be doing $20,000 in monthly sales and have been in business for at least 6 months as part of the qualification process. Merchant Growth’s Line of Credit minimum funding amount is $7,500 whether bundled or standalone. The line of credit is great for cash flow flexibility; use the funds when you need it and grow your business without having to take on large sums of debt.
From “Flex” payment options, to Term loan structures, to Lines of Credit, Merchant has a large following of different businesses with different needs all with different risk positions. This allows the Sales team to better solve for the customer’s needs. And nothing is more important to us than solving for this.
Merchant Growth Mission is to Help Small Business’s
Over the short, medium and long term life of a small business, the credit it uses to sustain and grow its business is hugely important. Leverage can be necessary and important, and so a reliable partner for access, and flexibility and for duration is hugely important. And while so many lenders demand fixed security, the Merchant Growth advantage enables the business to leverage its cash flows to secure credit, freeing up assets and providing flexibility. That’s a great Merchant Growth difference, and a role Merchant Growth always plays – remaining the most chosen partner in the private capital markets for working capital by small businesses.