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Your business needs capital to continue to grow, and now you’re investigating your options in order to find the right funding structure for your small business. One of the major points to consider is whether a loan with or without collateral is the best option. Learn more about the differences between an unsecured business loan and a secured business loan and how Merchant Growth can help you with our quick and convenient financing solutions.

What is a secured business loan?

With a secured business loan, if a borrower defaults, or in other words, cannot pay back the amount of money borrowed, the lender can repossess the collateral and sell it in order to cover the value of the loan. What can be used as collateral is also directly connected to the industry in which the business operates.
Here are some examples of collateral that can be used for a business loan:

Physical assets:

Non-physical assets:

 

What is an unsecured business loan?

In contrast, an unsecured loan offers funds without a business having to put up collateral for those funds.

Advantages of unsecured business loans

Additionally flexibility:

In addition to not needing collateral to qualify for funding, an unsecured business loan offers a faster application process because you don’t have to prove the value of the assets. With funding from Merchant Growth, you can even get funds in as little as 24 hours. Furthermore our application is fully online, meaning that you can complete it whenever you want, from anywhere that is convenient for you, without having to go in person to a bank and wait to hear back from them.

Qualification

With an unsecured loan, we look at the “whole picture” of your business in order to help determine the amount of funds your small business can qualify for. This can include:

Additional points to consider when it comes to unsecured business loans

Cost

Precisely because there is no collateral involved, the cost of an unsecured business loan will likely be higher than that of a secured business loan.

Personal guarantee

Although there is no collateral involved, it is common practice for business owners to provide a personal guarantee when getting funds.

 

 

What type of unsecured business loans does Merchant Growth offer?

Here at Merchant Growth our three types of financing include:

Term Financing

Similar to a traditional business loan, term financing can help businesses improve their cash flow by providing an immediate injection of funds based on future credit and debit card sales. As with all of our financing options, no collateral is required and businesses can take advantage of flexible terms that take into account your business’s cash flow.

Business Line of Credit

A business line of credit is a revolving credit facility where you only pay interest on the amount that you withdraw. Using a business line of credit from Merchant Growth helps you access the funds that you need without having to max out or simply over-rely on your business’s.

E-commerce Funding

With E-commerce funding, your online business can get access to the funds it needs to continue to grow. This can include buying inventory, increasing ad spend, operational costs, and more. As e-commerce platforms rely on credit card sales as the primary form of payment, we simply debit off of sales that go through your card processor.

What can you use an unsecured business loan for?

Our funding is unrestricted, meaning that you can use it to meet whatever your business’s particular needs are. Some examples of common uses of funds include:

 

 

Unsecured business loans Canada: Getting started today

If an unsecured loan is the right choice for your business, and you’re ready to get started, there are a few things that can get organized on your end in advance, or ensure you have easy access to, in order to help streamline the process even more.

This can include:

Remember that for any business applying for financing with Merchant Growth, our minimum requirements are:

We invite you to apply today and get the funds your business needs for its ongoing growth!

VANCOUVER, BC, Dec. 6, 2023 /CNW/ - Merchant Growth, a leading provider of financing for small businesses, is proud to announce a $300 million forward flow facility provided by funds managed by affiliates of Fortress Investment Group LLC ("Fortress") with Raymond James serving as the financial advisor to Merchant Growth Ltd. This facility supports Merchant Growth's plan to refinance thousands of Canada Emergency Business Account (CEBA) loans, enabling small businesses to capitalize on the partial debt forgiveness opportunity offered by the federal government.

The Canada Emergency Business Account (CEBA) has been a lifeline for many small businesses, providing critical financial support during challenging times. Recognizing the importance of helping businesses navigate their financial obligations, Merchant Growth has collaborated with Fortress to put in place this significant program dedicated to CEBA refinancing. Small businesses will be able to leverage funding via Merchant Growth to refinance their CEBA obligations, therein benefiting from the government's forgiveness offering.

The government's forgiveness program for eligible CEBA recipients presents a valuable opportunity for businesses to alleviate financial burdens. Merchant Growth's mission is to empower small businesses by providing convenient and accessible financial solutions tailored to their unique needs.

"This significant financing program with Fortress reinforces our commitment to supporting small businesses. We understand the challenges businesses face, particularly with the approaching CEBA loan forgiveness deadline, and this funding will help empower businesses to navigate these financial obligations effectively," said David Gens, Founder & CEO at Merchant Growth.

"Fortress Investment Group is excited to collaborate with Merchant Growth in providing essential funding needs for small businesses. This partnership aligns with our commitment to fostering economic growth and resilience in local communities by providing innovative funding solutions to specialty lenders. Together, we are seeking to make a positive impact on the Canadian small business landscape," commented Josh Bonacci, Managing Director at Fortress Investment Group.

About Merchant Growth

Merchant Growth is a leading Canadian financial technology company that specializes in small business financing. Over the past decade, Merchant Growth has supported Canadian businesses with hundreds of millions of dollars in growth financing. Using an innovative approach that includes the latest technology, complete transparency and thoughtful customer care, Merchant Growth is committed to helping make business financing convenient, easy to understand, and accessible. To learn more, visit: www.merchantgrowth.com.

About Fortress Investment Group

Fortress Investment Group LLC is a leading, highly diversified global investment manager. Founded in 1998, Fortress manages $44.7 billion of assets under management as of September 30, 2023, on behalf of over 1,900 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.

SOURCE Merchant Growth

For further information: Media Inquiries: Gabriella Pelosi, Talk Shop Media, gabriella@talkshopmedia.com

Small business is a major part of British Columbia, representing 98 percent of all businesses in the province, with approximately one-in-ten British Columbians being entrepreneurs of some kind. With that many businesses who are looking to get access to BC small business loans can feel like an uphill battle, either because you’re not sure where to start, concern over rejection from financial institutions, or not knowing all of the options available to you.

Whether you run a business in the city, up in the mountains, or along the coast, getting a business loan in BC doesn't have to be complicated, it doesn’t have to take away from you running your business, and it doesn’t even have to be in person.

Small business loans Vancouver: It’s personal to us!

At Merchant Growth we work with businesses not only across the whole province, but the whole country for that matter. With our bilingual and cross-country team, we’re able to help merchants in a wide array of industries with their funding needs.

However, as a Vancouver-based company ourselves, we’d like to think we have that extra insight into running a small business in the area as well as offering commercial loans in Vancouver.

 

How to get a business loan in BC: Where can you get funds?

Like any other decision, it’s important to weigh the pros and cons of each option in order to find the right solution for your business in both the short and long term.

Traditional Financial institutions:

Conventional institutions such as banks, are often the first place that most small businesses turn to in their search for financing. Given their size and market share, it’s reasonable that this be the first point of consideration.

But with more restrictive qualifications and lengthy application processes, this is not necessarily the ideal solution for all small businesses. As you may be required to actually go in and apply in person, assemble a large amount of documentation, in addition to the time it takes to hear back from them, this can represent a substantial amount of time away from your regular day-to-day operations of running your business.

Government grants or loans:

The federal government as well as the provincial government of British Columbia have a wide array of grants, subsidy programs, and tax credits available. For businesses that qualify and successfully receive government funding, it’s an ideal outcome. However, with potentially lengthy applications, as well as a competitive market with a large number of small businesses across the province or country vying for the same grants, competition can be very high.

In the short-term a grant can be a great solution, especially as it represents funds that a small business owner does not have to pay back. However, as it is likely a one-time injection of capital, once that money is used, business owners should be aware of the other options available to them to continue to fuel their growth.

Friends and Family:

Some small business owners can (and choose to) turn to friends and family to help collect funds. While this is a great option for some, for others this is either not an option, or they decide it is not the right choice for them. As these are your friends and family, it’s extremely important to consider the worst-case scenarios. For example, not being able to pay them back in the time agreed upon, or them perhaps requesting the funds back earlier. Think carefully about whether it’s truly worth potentially compromising such an important relationship.

Venture Capital:

Certain small businesses choose to sell a percentage of ownership of their company in order to get the funds that they need. While this is an option that works out well for some in terms of additional financial support as well as advice that the advisors may be able to provide, each option comes with its own pros and cons.

This type of financial transaction, if done with the right type of individual could allow for a quick growth trajectory, and the business owner maystill be content with the profit connected to their portion of ownership. However, if the relationship is ultimately not a positive one, that investor still owns that portion, and will still have opinions on the future of your business which could result in ongoing conflict.

Business loan BC – What can you use it for?

You may have a specific use for the funds in mind, or you may be considering how the funds could help you plan for your business’s future or free up your available cash flow in the short term. Our BC small business loans can be used for any needs that your business may have. Some examples include:

 

Merchant Growth’s small business loan BC options

Term Financing:

Similar to a traditional business loan, a term financing solution can help businesses improve their cash flow by providing an immediate injection of funds based on future credit and debit card sales. No collateral is needed and this solution offers flexible terms that factor in your business’s cash flow.

Business Line of Credit

A business line of credit is a revolving credit facility on which you only pay interest on the amount that you withdraw. Using a business line of credit from Merchant Growth helps you access the funds that you need while avoiding having to over-rely on or max out your business’s credit cards, ultimately providing an additional level of flexibility in how you manage funds.

Business loans BC: Merchant Growth customer success stories

Merchant Growth works with small businesses across the country, whether they’re in a big city, a small town, or anything in between, as well as those that operate in a wide array of industries, learn more about the experiences of a few merchants that we worked with and their experience with BC small business loans.

Shah Brothers

Shah Brothers is about more than food, their specialty grocery store is about bringing a sense of community and culture with their Indian and Sub-continental good and beauty products to the Prince George area.

While a consistently growing business is an ideal situation to be in, when it comes to keeping up with demand, and expanding, having the funds to do so can sometimes present a problem. With the desire to expand their offerings, Shah Brothers needed to purchase the inventory to do so, and turned to Merchant Growth to help them make that transition.

Read more about Shah Brothers’ experience working with us.

Big Star Sandwich Co. (Richmond)

Facing an unforeseen difficult start, having opened their location right before lockdowns began to take place Big Star Sandwich Co. (Richmond) quickly found themselves low on cash flow when it came to covering operational costs and bills while keeping their business open during the downturn in customers.

Financing from Merchant Growth helped Big Star Sandwich Co. (Richmond) weather the storm of closures and consequently overcome the slow period, helping them to move past that difficult time all while continuing to serve up their delicious sandwiches.

Read more about Big Star Sandwich Co.’s experience working with us.

ProTrack

Based out of Langley, British Columbia, ProTrack specializes in heavy equipment sales, rentals, parts, and support services. ProTrack turned to Merchant Growth for financing for tooling equipment, and so that they would not have to worry about a disruption in their cash flow.

With their Merchant Growth funding ProTrack was able to make the necessary purchasing and continue to grow their business without any major delay in their operations.

Read more about ProTrack’s experience working with us.

 

Business loans BC: What to prepare

As you begin your search for a small business loan in BC there are a few things that can get organized on your end in advance, or ensure you have easy access to, in order to help streamline the process even more. This can include:

Get started today with your small business loans BC

At Merchant Growth, we’re here to make small business financing simple and convenient. When it comes to getting a quick and convenient business loan BC, you can get between $5K-$800K in as little as 24h with our simple minimum requirements; being based in Canada, having a monthly revenue of $10K, and being in operation for at least 6 months. Whether you’re in need of a commercial loan in Vancouver, or BC small business loans for those located in other parts of the province, get started with us today!

At its core, running a business involves managing your outgoing expenses with the incoming revenue your business generates, your cash flow, and the money your business is left with after that subtraction of all bills and operational costs, your available working capital. As you can see, although the terms are sometimes used interchangeably, cash flow and working capital, while related to each other, are indeed separate financial components. Moreover they are terms that all small businesses need to have a clear understanding of.

In this blog we’ll help provide clarity to what is cash flow vs working capital, why it is essential to business operations as well as the working capital loan options available so that you can continue to leverage cash flow for your business’s growth. As the saying goes “you need to spend money to make money”, but in order to do so many businesses should consider the advantages of working capital loans.

 

Understanding your business’s cash flow

If we use a metaphor, think of your business’s cash flow like a river, and you’re standing in the middle: there is the water that flows to you (money coming into your business), and the water that flows away from you (expenses that come out from running your business). The flow of money to you (from sales) and away from you (for expenses) is your business’s cash flow. Understanding your numbers and having a proper cash flow plan in place is fundamental to the success of any small business, with your cash flow typically calculated on a weekly or monthly basis, same as any other business financial tracking you already have in place.

Assets

This is the money your business has coming in, but assets are not only the available money you have in the bank currently, they are also the accounts receivables, inventory, and business property (if you own it).

Liabilities

This is the money that covers all the costs and expenses of running your business. It could include rent, salaries, money paid to vendors, suppliers, taxes, accounts payables, or any other money that your business owes.

Profit vs Cash Flow

Although you may make a profit on each individual sale you make, if you have more expenses than incoming profit, your business will still be cash flow negative. Even a business that is profitable and cash flow positive can face challenges with cash flow if the working capital they have is not enough to meet the business’s needs and growth plan.

What is working capital

To calculate the amount of working capital your business has, the simplest equation is:

Working Capital = Current Assets - Current Liabilities

The general suggested ratio is 2:1 in terms of assets vs liabilities, but for most small businesses, this is likely not realistic to maintain at all times.

The reason this is also somewhat problematic in terms of the daily small business operations is that not all of your assets are liquid, they simply are not all cash in the bank that you can withdraw on any given day. Although you have your inventory and location, having more available working capital should never mean having to suddenly entirely liquidate either of those to simply turn around and purchase more inventory or re-invest in other upcoming projects. If this is the case, your business will then likely find itself in the same situation a few months down the road.

 

The challenge of cash flow

If the amount of available working capital the business has is not enough to allow for continued business growth, upcoming projects, or even sudden additional costs, businesses should consider alternative sources. Accordingly the need for additional working capital should not be considered taboo or negative as that extra injection of funds can be used for a variety of reasons. Cash flow financing allows for some stabilization amid the ebbs and flows of incoming and outgoing capital into your business.

While on the one hand, businesses with high cash flow can mean an elevated steady stream of incoming funds, on the other, the fundamental challenge for high cash flow businesses is ensuring access to enough regular capital to also cover expenses so that operations can continue and the business can continue to grow.

This can be particularly challenging for businesses that require frequent inventory purchases, especially if they have to be made in advance, or for businesses that have long wait periods between when they receive inventory and actually receive it. Cash flow can also be especially challenging for businesses that have larger contracts that take place over longer periods of time, but payment is only made upon completion, such as those in the construction industry.

Furthermore businesses may find themselves waiting to collect on monies owed to them by customers to then be able to pay their suppliers, resulting in a stall in regular cash flow.

Businesses can try a variety of cash flow adjustments to reduce expenses, especially during slow periods or amidst rising costs, but there is only so much that one can do to yield results, especially in the immediate short term.

Seasonal business

Seasonal businesses require even more cash flow planning due to the simple fact that their period of incoming cash flow is subject to the time that their business is indeed open and operational.

During the low season or off-season, many likely have reduced or even no incoming cash flow, unless they operate a complimentary business during the rest of the year. Having an extra boost of capital to help, for example, purchase inventory before the season starts.

 

What is a working capital loan and why/when should you get one?

If your current cash flow does not provide your business with the working capital it needs, consider a working capital loan. A working capital loan provides additional positive cash flow, for immediate use in the form of financing that a business can use for any purpose with the intention of running their business. This could include purchasing inventory, covering expenses such as rent or salary while they wait for incoming payment from a complete project, increasing marketing spend, etc. Unrestricted capital means funds that you decide how to spend for your business.

Some use-case examples:

One thing of note is that the overarching theme across the potential uses is that they all generally tend to be time-sensitive. When small businesses are in immediate need of loans for working capital, cash flow financing from an alternative lender, such as Merchant Growth can solve for that need substantially quicker than waiting and applying at a bank. Moreover it can all be done at the time of day that suits you best (like outside of your standard business hours!) as well as on the go, from the comfort of your home, or anywhere else.

Loans for working capital: What options are available?

Term Financing:

Like a traditional business loan, with a term financing solution small businesses can improve their positive cash flow with an immediate injection of funds based on future credit and debit card sales. Collateral is not required, and it offers flexible terms that factor in your business’s cash flow. The key here is to ensure your cash flow plan takes into account the profit that this extra working capital will generate, but also ensure your business’s ability to pay back the funds according to the terms of the loan.

Business Line of Credit

A business line of credit is a revolving credit facility on which you only pay interest on what you withdraw. It helps you to avoid having to over rely on or max out your business credit cards, providing an additional level of flexibility.

Merchant Growth working capital loans: What you need to know

Speed is one of the clear advantages of getting working capital loans from an alternative lender. Depending on the amount of financing you’re interested in, your business’s current revenue, and your speed at providing the necessary details about your business, you could receive financing between $5K-$800K in as little as 24 hours! Beyond that, most businesses that work with us receive financing within 3-14 days from when they apply.

As we try to get a clearer understanding of your business, some elements of the business we’ll look at can include:

The goal is to have an overall picture of your business and its operation, to help find you the right working capital loan for your business’s particular needs.

At Merchant Growth, our minimum requirements are:

If you’re ready to get started today and get the cash flow financing to help continue to grow your small business, we’re here to help answer any questions and help you secure a working capital loan!

Alternative Lending in Canada: Alternative to What?

Reading the word “alternative” likely brings up the question “what is the standard or conventional option?” For most small business owners who are not able to use their own personal funds, or perhaps raise money from friends and family, or who cannot or do not wish to max out their business credits, the first place that they will turn is their financial institution.

Companies that offer alternative loans in Canada offer online platforms to facilitate the financing process, and leverage a wide range of technology.

How Long Has Alternative Lending Been Around?

In some ways, the true origin of private lending goes back as far as lending itself. Whether that was borrowing money from an individual or group that charged interest, or the general interest in non-bank options.

Modern alternative lending got its start over fifteen years ago, in 2005, when the first peer-to-peer online loan is estimated to have taken place. With its start primarily in the UK and US markets, it has since grown globally, with alternative lending options becoming increasingly common worldwide.

Alternative lending in Canada has also been around for well over a decade, having grown substantially alongside market demand and overall interest in bank alternatives whether because of convenience factors or difficulty accessing capital from traditional institutions. At Merchant Growth, we’re proud to say we’ve been around since 2009.

Private Lenders Canada: Is Private Lending Safe?

As a private lender, security is of the utmost importance to us, both in terms of your private information and also in terms of the financial transaction.

Having worked with over 8,000 businesses and funded over $500 million, security is always top of mind for us.

 

 

Pros of Working With a Private Lender

Fully online: No more having to take time away from running your business, no more making appointments, and no more waiting in line. When working with an alternative lender, you can submit an application at the time of day that works for you, and from wherever suits you best, whether that be in the comfort of your home, or on the go from your mobile device.

Faster funding: With traditional institutions such as banks, in addition to the time it takes to actually go into the bank, delays in hearing back with regards to your potential approval for funding can take weeks, or even months! When working with an alternative lender such as Merchant Growth, small businesses can get funding in as little as 24 hours, with the majority of businesses able to get through the process from application to funding in an average of a week.

Approvals for a wider range of industries and businesses: Many banks will often have more restrictive policies on the types of businesses that they fund, as well as more rigid rejection policies based on the standing of the business such as their credit score. For example, businesses in the cannabis sector or restaurant industry often face higher levels of rejection with banks than with private lenders because of the lingering stigma Cannabis still faces post-legalization, or the risk profile restaurant or food-service businesses face. Working with a private lender, you are less likely to face those types of restrictions, as we work with a wide variety of businesses from all types of industries.

Unrestricted capital: Use the funds for your needs, with no need to submit a formal plan of intended use. Whether that’s purchasing inventory or equipment, hiring additional staff, opening another location, or simply for operational cash flow. Your funds, spent how you need to spend them.

Unsecured funds / no collateral required: another benefit of working with private lenders in Canada is that many (including Merchant Growth!) don’t require any collateral to approve you for financing. This is known as unsecured lending.

You run a newer business: Government grants or funding programs and banks may have different minimum requirements when it comes to how long your small business has been operational. This is another level of flexibility that working with an alternative lender provides. In the case of Merchant Growth, the minimum time in operations is six months, so even businesses still in their startup phase can apply for funding.

Things to Consider When Working With a Private Lender:

Rates: Because private lenders in Canada work with a wider range of businesses than banks and also offer financing as quickly and conveniently as they do, the rates will likely be higher than getting funds directly from institutional banks.

Term length: Because of the type of lending, private lenders cannot necessarily offer all of the same term lengths that banks can offer.

Payment frequency: Similarly, because of the length of the term, the frequency of payments may not be the same as what the banks are offering. For some small businesses this is ideal, because they do not have to make a single larger monthly payment. For others, who may prefer that, the more frequent daily or weekly payments is not their preference.

No in-person interactions: For some individuals, the convenience of online financing is a top reason for seeking out alternative loans in Canada, while for others, face-to-face meetings are essential and non-negotiable when it comes to financial transactions. Because we offer the convenience of a fully online and over the phone experience, there is no need for face-to-face interactions. However, offering the best customer service experience possible throughout the whole process from start to finish is always a fundamental value, and we aim to support our merchants and always answer any questions or concerns they may have.

 

 

Private lending: What Types of Financing Options are Available?

Term Financing:

Closer to a traditional business loan, with a term financing solution businesses can improve their cash flow with an immediate injection of funds based on future credit and debit card sales. Collateral is not required, and it offers flexible terms that factor in your business’s cash flow.

Business Line of Credit

A business line of credit is a revolving credit facility on which you only pay interest on what you withdraw. It helps you to avoid having to over rely on or max out your business credit cards, providing an additional level of flexibility.

What are the Eligibility Requirements for Private Business Loans

Each private lender will have their own specific requirements, but the general minimum requirements private lenders in Canada will look at are that the business is based in Canada, the amount of time that the business has been operating, and the amount of revenue the business generates on a monthly basis.

At Merchant Growth, our minimum requirements are:

What Other Factors Will Private Lenders Look at to Determine if my Small Business Will Get Approved

Each lender will value different aspects of your business’s standing according to its own risk assessment profile, but some of the other general factors that will come up in conversation when examining your business on the whole can include:

 

 

Alternative Lenders Canada: Is Alternative Lending Better Than Traditional Lending?

We’re probably biased because alternative lending is what we do, but in reality, it comes down to the particular needs and expectations of each small business customer.

It’s not so much that one is “better” than the other, each has its own benefits and additional factors to consider, so it’s more about factoring in the standing of your business, how fast you need the funds, the experience you’d like to have getting the funding, and understanding the repayment option.

Getting Private Business Loans: Next Steps

If you’re interested in learning more about Merchant Growth’s private business loan options, get in touch with us today or if you’re in the market for small business financing, and looking for $5K-$800K in as little as 24h, you can get started and apply here!

Merchant Opportunities Fund Increases BMO Credit Facility to $100 Million

VANCOUVER, BC, Aug. 21, 2023 /CNW/ - The Merchant Opportunities Fund, a Vancouver-based private debt fund focused on investing in specialty finance portfolios, today announced that it has increased its revolving debt facility with the Bank of Montreal ("BMO"). The facility now consists of a $70 million funding commitment with a two-year term along with a $30 million accordion, with a Schedule 1 bank being added to the now syndicated facility.

The Merchant Opportunities Fund invests in proprietary specialty finance portfolios that in many cases consist of loans or advances that are originated, underwritten, and serviced by their primary originator, Merchant Growth. The BMO debt facility specifically provides funding for the Merchant Growth portfolio. BMO is acting as Agent and Sole Bookrunner on the revolving debt facility.

"We are thrilled to help thousands of additional Canadian borrowers through this significant increase in our borrowing capacity with top tier financial institutions," said David Gens, President & CEO of the Merchant Opportunities Fund and Merchant Growth.

Through the fund's 13 year track record of prudence and profitability, the Merchant Opportunities Fund has helped its investors generate attractive and consistent returns while also contributing to the prosperity of more than 15,000 businesses and individuals. Since its inception in 2010, the Fund has generated a compound annual return net of all fees of over 9% for its investors.

About Merchant Opportunities Fund

Our mission is to provide our investors with returns typically only accessible to institutional or accredited investors through private investments, coupled with greater liquidity options and flexible redemption rights. We do this by investing in short-term, small to mid-sized business credit and consumer loans originated by successful specialty finance companies. Since 2010, our capital has contributed to the prosperity of more than 15,000 Canadian businesses and individuals. To learn more, visit www.merchantopportunitiesfund.com.

About Merchant Growth

Merchant Growth is a leading Canadian financial technology company that specializes in small business financing. Over the past decade, Merchant Growth has supported Canadian businesses with hundreds of millions of dollars in growth financing. Using an innovative approach that includes the latest technology, complete transparency, and thoughtful customer care, Merchant Growth is committed to helping make business financing easy to understand and accessible. To learn more, visit www.merchantgrowth.com.

For further information: Sean Watkins | VP of Marketing | Merchant Growth | 416.846.6900 | swatkins@merchantgrowth.com

Small businesses are a vital part of Alberta’s economy and employment. In fact, there are over 150,000 small businesses located in the province, with small and medium sized businesses making up the overwhelming majority of businesses in the province. The reality of running a small business, regardless of industry or sector, is the need to access capital. When seeking business loans, Alberta based companies should consider all the options available both public and private, as well as carefully evaluate their particular needs and circumstances.

Whether you’re located in a major city like Calgary or Edmonton, further south in Lethbridge or Medicine Hat, or more north in Fort McMurray, the need for small business funding in Alberta affects all types of businesses. In this blog we will review financing options for businesses located in Alberta, including the different types of financial institutions for getting an Alberta small business loan, different types of financing options, how your business can use these funds, and ultimately address how to get a business loan in Alberta and what you will need

 

 

Small Business Funding Alberta: What are the Options Available?

Alberta business loans come in many different formats, sizes, and with varying terms and conditions. Understanding the options available to you will allow you to put your business in the best position for success when it comes to getting the right loan for you and is prudent financial planning for your business.

Traditional Financial Institutions

For most small businesses, a traditional financial institution such as a bank is the first place that will come to mind during your search for Alberta small business loans. Due to their size, banks can offer lower interest rates which makes them an attractive first consideration for most small business owners seeking financing.

The reality that many will face however is lengthy and drawn-out application processes, more restrictive qualifications and parameters to be met, and long periods of time waiting to hear back about approval. In addition to the time that needs to be set aside to make the appointment with the bank, attending the appointment which will most likely be during business hours that you would normally be better off working at your own small business, and time having to assemble any physical documentation that you would need to bring with you.
Furthermore banks are generally more risk averse, which makes it much more cumbersome to get financing from a traditional financial institution.

Friends & Family

Some businesses will turn to friends and family to try to raise funds. When possible this can be a great option due to lower overall cost and avoidance of any of the frustration one may have to deal with traditional institutions.

However the amount of money you will be able to pool will likely be smaller so if you are seeking a bigger injection of funds, there are limitations, and you may find yourself still needing to source additional capital. Furthermore, working with friends and family may ultimately result in greater frustration in, for example, the terms of timeline to pay back the funds if suddenly someone needs the funds to be returned sooner than initially agreed upon. Combining money and personal relationships can be a great solution for some but can be detrimental to others.

Venture Capital or Angel Investor

For certain small businesses, it can make sense for you to offer a percentage of ownership in exchange for capital. The investor may provide additional expertise or have valuable connections to help with your small business’s growth.

However getting outside investment also comes with its own challenges, the first of which is that you are diluting your ownership of your small business. Secondly, you'll also have other opinions to consider when making important decisions for your business. Thirdly, as opposed to simply having to pay off the associated amount taken with a loan, you’ll now be paying a portion of your company’s profits to this group or individual indefinitely.

Grants

When it comes to getting funds, grants are a great option to consider. The reason being that the difference between a loan or any type of financing versus a grant, is that you don’t have to pay a grant back.

Small businesses interested in grants should do their due diligence in researching the right grant, both on the provincial and federal level as they come with different conditions. This can include being used for an identified purpose (such as for helping, investing in training of workers to develop additional relevant skills, or for technological development), or they can be intended for a particular industry or to create additional opportunities or support a specific demographic group.

If you’ve been fortunate enough to qualify for a grant, whether to help you at the startup phase of your business, or to help in your growth journey, in most cases the unfortunate reality is that grants are a one-time injection of capital. Once you use it, that’s it. The next time you find yourself needing capital you now find yourself back at square one searching for a solution.

Additionally, the grant process is arguably even more challenging than even banks because of demand for the limited availability of the funds coupled with the competition of all the other Albertan or even Canadian small businesses vying for them.

 

 

Business Loans Alberta: Quick and Simple Financing With Merchant Growth

If you’re not eligible for grants, or simply don’t have the time to apply or wait to hear back from a bank only to get turned down, an online business loan such as one from Merchant Growth may be the right solution for your Alberta small business loan needs.

At Merchant Growth, we work with a wide range of small businesses across many industries.

Term Financing

In your search for Alberta small business loans a Term Financing Solution provides businesses with quick access to capital, between $5K-$800K in as little as 24 hours! Term financing is unrestricted capital, meaning that you can use it for your business’s particular needs for growth.

Similar to conventional bank loans, with Term Financing your small business receives a lump sum upfront, but rather than monthly payments, the balance is paid back through weekly or daily payments. This solution is ideal for businesses with consistent cash flow due to the predictability of repayment which makes it easier to budget for.

Business Line of Credit

A business line of credit is a great solution for small businesses in particular or businesses that need quick access to cash or have irregular business cash flow because it offers the potential for lower interest rates and additional flexibility. A revolving credit facility that allows business owners to borrow money with repayment terms that are flexible, and with business owners only paying interest only on the amount they have borrowed.

The Line of Credit gives small businesses the freedom to access capital when they need it, repay it when they want to, and borrow again. A Line of Credit offers favorable interest rates and you only pay interest on what you withdraw, so minimum monthly payments can be easily budgeted for. And businesses don’t have to worry about maxing out their credit cards.

Business Loans Alberta: Merchant Growth Success Examples

Merchant Growth is proud to serve our small business customers with their financing needs across the country, and that includes businesses located in Alberta and across the country.

Terra Excel Drones

Terra Excel Drones, from Edmonton, Alberta provides a complete assortment of drone services, drone technology, and drone certifications, in addition to selling drones.

They reached out to Merchant Growth in particular due to their need for financing in a timely manner and to help them avoid depleting their available cash flow while keeping up with current demand and simultaneously planning for upcoming projects.

Read more about Terra Excel’s experience working with us.

Aboriginal Choices

Aboriginal Choices offers individualized and supportive assistive programs for children and their families. They are connected to individuals and families that they work with through the Child and Family Services Agency (CFSA) or a Delegated First Nation Agency (DFNA) in Alberta.
Aboriginal Choices sought out financing from Merchant Growth to help cover unforeseen emergency expenses, as well as due to increasing fuel costs. Funding allowed them to remain operational and continue to take on additional contracts.

Read more about Aboriginal Choices’ experience working with us.

 

 

Business Loan Alberta - What Can You Use it For?

Your Alberta small business loan can be used for any needs your business may have. You may have a specific use for the funds in mind, or you may be considering how funds could help you plan for your business’s future or free up your available cash flow in the short term. Some possible uses for Alberta small business loans include:

Small Business Loans Alberta: What To Prepare

As you begin your search for Alberta business loans there are a few things that you should get organized to help streamline the process as much as possible. This could include:

Next Steps: Business Loan Alberta

At Merchant Growth, we’re here to make small business funding easy and accessible. When it comes to getting a quick and convenient small business loan in Alberta businesses can get between $5K-$800K in as little as 24h with our simple minimum requirements of being based in Canada, having a monthly revenue of $10K, and being in operation for at least 6 months. Get started with your Alberta small business loan today!

Small business owners wear a lot of hats and often take on multiple roles within their businesses, which means that they are consequently always on the go. This means that when it comes to their financing needs, any excess time spent applying for financing or waiting to hear back from a financier means time away from running the business and potential growth.

Access to fast cash for small business can mean the difference between keeping operations regular in the event of unforeseen circumstances, or it can also mean the ability to take on new projects and grow your business. Easy business funding means not having to choose between depleting your cash flow in order to ensure your team gets paid on time while also having the funds for upcoming projects that require an upfront cost.

With speed and efficiency being fundamental parts of small businesses’ success, in this blog we’ll cover all the areas where fast financing can mean the difference between potentially missing out, or making the most of growth opportunities with the right access to funding.

Fast Business Loans Online VS at a Bank

A major delay in the funding process is having to make time to go to the bank during the hours that they’re open, rather than at the time that works best for you as a business owner. As someone who may work extended hours or even, applying online means you can apply at any time and don’t have to go in person. No more driving to the bank, having to make an appointment in advance, or waiting in line. Whether on your mobile device or computer, you can apply for financing at any time of the day when it’s convenient for you.

In addition to their excessive paperwork and long waits, another difference that sets Merchant Growth apart from banks is that not only do we not have the same restrictive parameters when it comes to industries that we will or will not fund. Furthermore we also take into account the full picture of the business and its overall health when it comes to making an assessment.

 

Why Businesses Need Fast Funding When Something Goes Wrong

As much as one tries to plan for the unforeseen, and even if you’ve set up an emergency fund, unfortunately that’s not always enough to cover it. In these types of scenarios fast cash for small business matters that much more.

Equipment Failure

If your business heavily relies on equipment, whether that be in the automotive industry, construction, restaurant industry, or it’s a matter of vehicular failure, this shutdown is not only like losing a fundamental team member, it also risks a partial or total shutdown of operations. Access to fast small business loans gives you access to the funds to repair or replace vital equipment and help minimize any delays that you may occur in the meantime.

Emergency Repair

Whether it’s a water leak, weather-inflicted damage on your patio, a broken window, or any other unfortunate sudden scenario you may find yourself in, the stress of getting this repair sorted as soon as possible and the associated cost, coupled with the potential loss of incoming revenue in the meanwhile, is a double hit that is definitely hard to take. Quick and easy funding can help alleviate some of the stress so that you can get your repair sorted without having to deplete your cash reserve, or even worse, shut down your business for an extended period of time.

Easy Funding for Small Business Growth

Convenient funding isn’t only for worst-case scenarios, but rather can add an extra boost to your business at an optimal moment for growth.

Hiring Additional Staff

Business has suddenly taken an uptick and you and your team are stretched thin trying to keep up with demand. Or maybe you’re facing the unfortunate scenario of a sudden departure of an employee without notice. Now you find yourself needing to fill that spot fast. But with funds already tied up in inventory purchases or upcoming projects, access to fast business funding can help alleviate that one additional cost you have to juggle.

Having the right people on your team, and the right size of team allows your small business to provide the best service possible to your customers. Regardless of if it’s for additional hiring for your busy season, or you’d like to add on more full time team members, fast access to funds means you don’t have to miss out on the best talent.

Expansion & Upcoming projects

While a growing business is a best case scenario, it likely requires additional funds to help facilitate this growth. Whether it’s purchasing an additional location, another vehicle, an extra piece of equipment, or even building or expanding an outdoor patio, fast business funding allows you to inject those additional funds to make it happen.

Upcoming projects should be exciting, but unfortunately logistics and planning, in particular when it comes to funds to fulfill those projects can add additional stress, or even leave them out of reach. Fast small business loans means that those new projects don’t have to wait, in particular for industries such as construction or transportation that have longer periods of time between their larger payments for ongoing projects or services.

Inventory

Managing inventory can be incredibly tricky. You have to make sure you have enough to keep up with demand while also not being unable to sell it. Additionally, inventory planning and purchasing can require substantial advance planning, or businesses may find themselves in a crunch either because they’ve run out, or a particularly good deal has presented itself.

It may also be the case that a supplier is offering a discount for a limited period of time which would mean an increased profit margin if taken advantage of. With our fast loan approval process, businesses don’t have to worry about missing out on this type of opportunity as they wait to hear back if they’ve been approved for financing or not.

In any of these situations, it is a challenge for businesses to come up with a substantial enough sum of money to make the inventory purchase without yet having made those sales, and without depleting all of their cash flow needed to cover other expenses.

Marketing

Whether it’s for a special offer or new product that would benefit from the extra push and exposure from a marketing campaign, or generally promoting your business to reach more customers, with easy business funding, businesses can extend their reach.

Marketing can be tricky, even for individuals with experience. And while one can certainly get a positive return on investment, depending on the type of marketing campaign it can still be costly upfront. Because it is a secondary expense (unlike salaries, utilities, or other necessary costs that businesses have to remain operational) businesses may be unknowingly missing out on additional growth opportunities.

Time sensitivity is a frequent tactic used in marketing - think limited time, special promotion. But the same time crunch then also applies to your ability to promote it.

Seasonal Businesses

If small businesses weren’t already feeling exceptionally pressed for time when it comes to access to financing, imagine if your sales period were reduced from year-round to a few months. This is the reality that seasonal business owners are faced with given their shorter window of opportunity and the necessity to be that much more diligent with how their time is optimized.

With easy funding for small business seasonal businesses don’t have to find themselves left out and unable to secure financing. Whether it be in anticipation of their upcoming season, or in the event they need an additional injection of capital during the season to help give their business a needed boost and maximize their profit.

 

 

Fast Loan Approval: What Can Small Business Owners Do to Help Expedite the Process

When it comes to fast small business loans, applying online will certainly mean a faster and more streamlined experience overall. However, small business owners can also take a few steps to help the process move along and contribute to a faster loan approval.

If you get stuck or have any questions or concerns at any point in the application, our team at Merchant Growth is always here to help. As you prepare to apply for Merchant Growth financing, consider the following points to help speed up your easy business funding experience.

Understand how to access your online banking information

Unlike going in person to a bank with all of your paperwork, getting a fast business loan online means that you’ll need to be able to access and share some financial information about your bank online. To help ensure a fast business finance experience, knowing how to access this information helps speed up the process that much more.

Have access to vital business information

Ensuring you have quick and easy access to the necessary business information such as proof of ownership, proof of sales, etc., all contribute to a streamlined experience and ultimately a fast loan approval. Your ability to provide the necessary information in a timely manner means that your application can consequently also be assessed that much quicker. During the application process we will work with you and let you know any supplementary information that you’ll need to provide.

 

 

Fast Business Loans Canada: The Merchant Growth Experience

Easy funding for small businesses is the difference between having access to the money that one needs in a timeline that meets your needs, and applying from wherever works for you, rather than a drawn out and overly complicated process elsewhere.

So just how quick is Merchant Growth small business financing?

Depending on the amount of financing you’re interested in, your business's current revenue, and ability to access documentation about your business, you could receive financing between $5K-$800K in as little as 24 hours! Beyond that, many businesses that work with us receive financing within 3-14 days from when they apply.

What Type Of Fast Business Finance Options Are Available?

Merchant Growth offers two main financing options depending on your needs:

Fixed Financing

Closer to a traditional business loan, with a fixed financing solution businesses can improve their cash flow with an immediate injection of funds based on future credit and debit card sales. There is no collateral requirement, and it has flexible terms that take into account your business’s cash flow.

Business Line of Credit

A business line of credit is a revolving credit facility on which you only pay interest on what you withdraw. It allows you to avoid maxing out your business credit cards, and provides an additional level of flexibility.

 

When it comes to quick business loans in Canada, consider Merchant Growth for your financing needs. We’ve helped over 8,000 small businesses with fast business funding so that they never have to choose between getting the necessary funds and actually running their business. What better time to get started and get the funding your business needs, today!

Merchant Growth Announces Strategic Partnership With Loop, Acquires Small Business Loan Rights From Lending Loop

VANCOUVER, BC, June 13, 2023 /CNW/ - Merchant Growth Ltd. ("Merchant Growth"), together with its funding vehicle, Merchant Opportunities Fund Limited Partnership, is pleased to announce an exclusive partnership with Loop Funding Inc. ("Loop") to become the dedicated financing provider for small business customers of Lending Loop (Loop's small business lending platform). This strategic move will ensure a seamless transition for Lending Loop's customers, who will continue to receive exceptional service and support by Merchant Growth for loan offerings.

This partnership will see Merchant Growth assume the go-forward responsibility of providing term loans to Lending Loop's customers, enabling Loop to focus on growing its neo-banking platform through which they offer multi-currency accounts, credit cards, FX and more. This collaboration allows both companies to leverage their respective strengths and provide the best solutions for small businesses.

Merchant Growth CEO David Gens, expressed enthusiasm about the collaboration, stating, "Lending Loop has always operated in an incredibly customer-centric approach while being highly tech-enabled, which is in alignment with Merchant Growth's approach. We are excited to provide additional term loan financing to Lending Loop's customer base in the years to come."

The integration of Lending Loop's term loan customers into Merchant Growth's platform will be executed with meticulous attention to detail, ensuring a smooth transition for all parties involved. Lending Loop's term loan customers can expect continued access to competitive loan products, personalized service, and the same level of care they have come to expect from Merchant Growth.

Cato Pastoll, CEO of Loop, commented on the partnership, saying, "At Loop, we have become laser-focused on providing innovative banking services for Canadian businesses and entrepreneurs. This partnership with Merchant Growth allows us to double-down on our focus on delivering excellent financial products and services for small businesses, knowing that our Lending Loop customers will receive world-class service for their borrowing needs going forward."

Merchant Growth is dedicated to serving small businesses and empowering them with the financial resources they need to thrive. This exclusive partnership further strengthens the company's position as a trusted partner for small business financing, offering a comprehensive suite of solutions to support their growth and success.

About Merchant Growth

Merchant Growth is a leading Canadian financial technology company that specializes in small business financing. Over the past decade, Merchant Growth has supported Canadian businesses with hundreds of millions of dollars in growth financing. Using an innovative approach that includes the latest technology, complete transparency and thoughtful customer care, Merchant Growth is committed to helping make business financing convenient, easy to understand, and accessible. To learn more, visit: www.merchantgrowth.com.

About Loop

Loop Financial Inc. is the parent company of Loop and Lending Loop and offers financial services for growing Canadian businesses. Loop Financial offers no-fx business credit cards, multi-currency business banking details, free international payments and capital products for growing companies. Since 2014, Loop has helped Canadian ecommerce brands, start-ups, agencies, entrepreneurs and more save thousands in banking fees with financial products that accelerates business growth. Lending Loop is an online loan platform that provides small businesses with access to simple and affordable loan products.

SOURCE Merchant Growth

For further information: Sean Watkins | VP of Marketing | Merchant Growth | 416.846.6900 | swatkins@merchantgrowth.com

 

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