Navigating taxes can be daunting for small business owners, but understanding tax deductions is a powerful way to reduce taxable income and improve your business’s cash reserves. From everyday operational costs to long-term investments in equipment, there are many expenses you can claim to lighten your tax burden. In this blog, we’ll explore key tax deductions available to Canadian small business owners, highlight common eligible expenses, and share tips for staying organized and compliant with CRA regulations. 

Eligible Business Expenses

Start by identifying deductible expenses—those incurred to operate your business and reduce taxable income. The CRA allows claims for necessary and reasonable costs tied to earning business income. Below are some common business expenses, but for more details, visit the Government of Canada’s official website.

1. Operational Costs

• Rent for office, retail, or storage space is deductible. Utilities like heating, electricity, and water are also deductible, as are office supplies like pens, paper, and printer ink.

2. Employee Salaries and Benefits

• Wages, salaries, bonuses, and employer contributions to CPP, EI, and other benefits are deductible. Costs for employee benefits, including health insurance, dental plans, and retirement contributions, can also be claimed.

3. Vehicle Expenses

• Fuel costs, maintenance, and repairs for business use of your vehicle are deductible. Lease payments and insurance for a business vehicle are also deductible. If you own the vehicle, you can claim depreciation (CCA) over time.

4. Home Office Expenses

• If you run your business from home, you can claim a portion of home expenses, including rent or mortgage interest, utilities (heating, electricity, water, internet), and property taxes, based on the size of your home office.

5. Marketing and Advertising

• Advertising costs across various channels, website development and maintenance (hosting, domain, design), and promotional materials like business cards and flyers are deductible.

6. Travel and Meals

• Business travel expenses like airfare, accommodations, and car rentals are deductible. You can also claim 50% of meal and entertainment costs related to business activities, such as client meetings or events.

7. Professional Services

• Legal and accounting fees for business-related services, as well as consulting fees for external expertise, are deductible.

8. Training and Education

• Costs for business-related courses, seminars, and certifications, as well as books and industry subscriptions, are deductible.

9. Interest and Bank Charges

• Interest on business loans, credit lines, or business-related credit cards is deductible. Monthly bank fees and transaction charges for business accounts are also deductible.

10. Insurance

• Business Insurance: Premiums for insurance policies covering your business property, liability, or workers’ compensation are deductible.

11. Bad Debts

• If you have an account receivable that is unlikely to be collected and is written off, you may be able to claim it as a bad debt deduction.

12. Capital Assets and Depreciation

• Capital Cost Allowance (CCA): For long-term assets like equipment, vehicles, or real estate, you can claim a portion of the purchase price each year as depreciation. This allows you to spread the cost of these assets over their useful life.

Important Considerations:

• Mixed-Use Expenses: For expenses that are used both personally and for business (e.g., your home or vehicle), you can only deduct the portion that is business-related. Keep detailed records to calculate the correct percentage.
• Receipts and Documentation: Always retain detailed receipts and documentation for all expenses, as the CRA may request them if they review your tax return.

By understanding what qualifies as an eligible expense, small business owners can reduce their taxable income and maximize their tax savings. However, it's essential to ensure that expenses are both reasonable and directly related to business activities to comply with CRA regulations. Visit the CRA’s website for details on tax claims for corporations and sole proprietors/partnerships. 

Keeping Detailed Records

The CRA requires businesses to keep records of income, expenses, and transactions for at least six years. Proper record-keeping helps you make informed business decisions and claim all eligible tax deductions. 

Types of Records to Keep

1. Income Records:

• Sales invoices, receipts, and bank statements to track income.
• Contracts and agreements with clients or suppliers.

2. Expense Records:

• Receipts for business purchases and supplier invoices.
• Credit card and bank statements for business purchases.

3. Payroll Records:

• Employee records, including hours worked, wages, and deductions.
• Track benefits, bonuses, and other compensation.

4. Vehicle Records:

• Maintain mileage logs for business trips.
• Keep receipts for fuel and maintenance related to business use.

5. Asset Records:

• Keep invoices for capital assets (e.g., computers, vehicles).
• Track asset depreciation for CCA claims.

6. GST/HST Records:

• Retain records of filed returns, payments, and ITCs claimed.

Best Practices for Record-Keeping

Here are some best practices for record-keeping:

1. Organize Records: Keep all receipts, invoices, and financial statements organized by category and date for easy access.
2. Digital Records: Use accounting software to store and manage digital records, ensuring they’re secure and easily retrievable.
3. Maintain Consistency: Update your records regularly to avoid backlog and ensure accuracy.
4. Keep Everything: Retain records for at least 6 years, as required by the CRA, including receipts and tax filings.
5. Separate Business and Personal: Use separate accounts and credit cards for business expenses to simplify tracking.

The CRA allows businesses to file taxes digitally through its online portal, making digital record-keeping a convenient option. Receipt apps can help by storing photos of receipts and categorizing them for tax purposes, streamlining the filing process.

By maintaining detailed records, small business owners not only ensure they meet their legal obligations but also make it easier to track business performance, identify areas for improvement, and maximize tax deductions. Proper record-keeping might take time upfront, but it will save you significant effort and stress down the road, especially when tax season rolls around.

Understanding Restrictions 

Understanding the restrictions around tax deductions is crucial for ensuring that your small business complies with Canada’s tax laws and avoids costly mistakes. The Canada Revenue Agency (CRA) has specific rules regarding which expenses can and cannot be deducted, and not all business-related costs qualify. 

1. Personal Expenses

• Non-Business Use: Only the business portion of expenses (e.g., fuel, repairs) is deductible.
• Home Office: Claim a portion of home expenses (e.g., rent, utilities) used exclusively for business.
• Food and Meals: Deduct 50% of business-related meal and entertainment costs; personal meals aren't deductible.

2. Capital Costs (Depreciation)

• Claim asset depreciation through Capital Cost Allowance (CCA) over time. Deductions follow CRA limits by asset class (e.g., Class 10 for vehicles, Class 1 for buildings) and are spread over the asset's useful life, not fully in the purchase year.

3. Non-Deductible Expenses

• Fines, penalties, and political contributions aren’t deductible. Personal loan interest isn’t deductible, and life insurance premiums are only deductible if tied to a business loan.

4. Entertainment and Client-Related Expenses

• Deduct 50% of business-related entertainment costs, but employee meals, gifts, and entertainment may be taxable benefits, not deductible.

5. Mixed-Use Property and Assets

• For mixed-use assets like vehicles or home offices, deduct only the business portion, supported by records like mileage logs or office square footage.

6. Gifts and Promotions

• Deduct gifts to clients or partners up to $500 per recipient annually; amounts above are personal expenses. Promotional materials are deductible if business-related.

7. Start-Up Costs

• Pre-operating expenses, like research or training, are deductible once the business starts or can be capitalized. R&D costs may qualify for SR&ED credits under strict criteria.

8. Loan and Interest Deductions

• Interest on business loans is deductible if used for business purposes. Personal or mixed-use loans don’t qualify. Keep documentation, like loan agreements and bank statements, to verify business use.

9. Employee-Related Deductions

• Contributions to private health insurance for employees are deductible, but personal premiums for owners are not. Pension contributions for owners or self-employed individuals are not deductible unless the plan is registered with CPP or a similar program.

10. Sales Tax Considerations (GST/HST)

• If registered for GST/HST, you can claim input tax credits (ITCs) on business-related purchases, not personal ones. For large capital assets, claim GST/HST on the purchase, but the CRA may require ITC recapture if the asset is no longer used for business.

Using losses wisely

Using business losses wisely can help small businesses reduce their tax burden and improve cash flow. In Canada, the CRA allows businesses to carry losses forward or back to offset taxable income, either in past or future years. Loss carrybacks enable businesses to apply losses to previous years and potentially receive a tax refund, while loss carryforwards allow businesses to reduce taxable income in profitable future years. 

It's crucial to track losses accurately, understand the restrictions around claiming losses, and consult a tax professional for strategic planning. By leveraging these strategies, businesses can minimize taxes during profitable years and recover taxes paid in previous years during lean times. 

Consult with professionals

Consulting with professionals, such as accountants or tax advisors, is essential for small business owners to navigate Canada’s complex tax system effectively. These experts can help identify eligible deductions, optimize tax strategies, and ensure compliance with CRA regulations, reducing the risk of costly mistakes. They can also provide tailored advice on managing business losses, carrybacks, and carryforwards, and offer strategic planning to minimize tax liabilities. By working with a professional, small business owners can save time, avoid penalties, and make informed decisions that support long-term growth and financial success.

Bridging the Gap: Financing Solutions for Tax Season

When a small business pays its taxes, it can often face a temporary cash flow shortage as a result of the large lump-sum payment. This can create a tight situation where operating expenses or new opportunities are harder to fund. As a small business financing company, we understand how these cash flow gaps can impact day-to-day operations. That’s why we offer flexible financing solutions to help businesses access the funds they need, ensuring they can continue to grow and manage their finances without disruption during tax season or beyond.

 

There are 187,741 small businesses in British Columbia, making up 98% of the total businesses in the province. Small businesses are the backbone of Canada’s economy, and many Canadians aspire to start their own. However, the process can seem daunting, and some may not know where to begin. So, we’ve broken the steps down in this blog to help aspiring entrepreneurs through the process.

Creating a Business Plan

The first step that future business owners can take is to write a business plan. A business plan tells external parties such as potential partners, investors, and financial institutions about your company’s goals, strategies and financial projections. It is a crucial document to help you secure funding for your business and provides a roadmap for future operations. A good business plan will include the following:

Executive Summary

• Business Overview
• Industry or Market Analysis and Strategies
• Overview of your Products and Services
• Description of your Business Management and Organization Setup
• Sales and Marketing Strategies
• Competitive Analysis
• Request for Funding
• Financial Projection

For a more in-depth guide on how to write a business plan, check out our blog on this topic.

Choosing a Business Structure

Selecting the right business structure is crucial for future operations. When weighing the options, consider factors like personal liability, taxation, control over decisions, funding needs, regulatory requirements, and long-term business goals. Also, assess the costs of setup and maintenance, as well as the operational flexibility. There are a number of different business structures to choose from, so it may be a good idea to seek professional legal and financial advice to ensure the structure aligns with your specific needs and circumstances.

Sole Proprietorship

A sole proprietorship is a business with one owner operator, who has full control of the business. This structure is simple and less costly to set up, and has less regulatory requirements than others. However, a sole proprietorship leaves owners with unlimited personal liability for business debts, adding risk, and making it harder to raise capital.

Partnership

In a partnership, business ownership is shared amongst two or more people. There are a few different types of partnerships to choose from.

General Partnership

In general partnerships, all partners share management responsibilities and liabilities. Partners pool their resources together and split profits or losses depending on their share in the company. Like a sole proprietorship, general partnerships have unlimited personal liability for business debts.

Limited Partnership

Limited partnerships consist of general partners and limited partners who share profits and losses. General partners typically manage day to day operations for the business and own a larger share of the company. They also have unlimited liability. Limited partners typically have less involvement in the business, a smaller share of profits, and have limited liability.

Limited Liability Partnership (LLP)

In Limited liability partnerships ('LLPs'), two or more individuals or corporations come together to form a partnership. Partners have limited liability for the actions of other partners, so this is often used amongst professionals such as lawyers or doctors.

Corporations

A corporation is a legal entity separate from its owners. It is owned by shareholders, but has some of the legal powers of an individual, such as acquiring assets and debt, and being sued. Corporations provide limited liability protection, protecting the personal assets of business owners.

The above describes the most common business structures used in BC, but for more information, visit the government of British Columbia’s website.

Registering your Business Name

All businesses must register a legal business name with the provincial government. First, conduct a name search to ensure the name you have chosen is unique, and then, register the business name with BC Registry Services. Only corporations, cooperatives or societies can ensure that another business does not use their name in the future. Name protection does not apply to sole proprietorships or partnerships. 

Registering your Business

A Business Number (BN) is required in British Columbia if you need to interact with the Canada Revenue Agency (CRA) for purposes such as collecting GST/HST, payroll deductions, or corporate income tax. This can be done online, by mail, or by fax.

Online:

Visit the CRA’s Business Registration Online (BRO) service and complete the online application form. You’ll need details about your business, including its name, address, and the nature of your business activities.

By Mail or Fax:

Download and complete the “Form RC1, Request for a Business Number (BN) and Certain Program Accounts” from the CRA website. Send the completed form to the address or fax number provided on the form.

You will need to provide the following information:

• Business Details: Business name, address, and contact information.
• Business Structure: Type of business (sole proprietorship, partnership, corporation).
• Business Activities: Description of the primary business activities.
• Ownership Information: Information about the owners or directors of the business.

Receive Your Business Number

After processing your application, the CRA will issue a Business Number. The BN is a unique nine-digit identifier used for all dealings with the CRA. You will receive it by mail or electronically, depending on your method of application.

Permits and Licenses

Bizpal is a free tool to help you find permits that you may need for municipal, provincial, and federal levels of government.

Location:

Permits and licenses may vary depending on your municipal and provincial regulations. Obtain a business license from the local municipal office where your business operates. This license allows you to conduct business within that municipality.

Industry-Specific Permits

Health and Safety Permits: If your business involves food handling, health care, or other regulated activities, you may need specific permits from health authorities or regulatory bodies.

Environmental Permits: Businesses with potential environmental impacts, such as waste disposal or emissions, may require permits from environmental agencies.

Provincial Permits and Licenses

Liquor License: If your business involves the sale or distribution of alcohol, you need a liquor license from the Liquor and Cannabis Regulation Branch.

Special Industry Licenses

Certain industries, such as real estate, financial services, and transportation, require additional provincial licenses.

Federal Permits and Licenses

Import/Export: If your business involves importing or exporting goods, you may need permits from the Canada Border Services Agency (CBSA) and other federal agencies.

Transportation: Businesses involved in transportation may require permits from Transport Canada.

Set Up Your Business Operations

When starting a business in BC, first decide on the location, whether it’s a home-based business, retail space, or office space. Next, set up your business banking by opening a business bank account and obtaining a business credit card if needed. Lastly, organize your accounting and record-keeping by setting up an accounting system to track income and expenses efficiently.

Hire Employees (if applicable)

When recruiting and hiring in BC, start by developing clear job descriptions, posting job listings, and conducting interviews. Ensure compliance with BC employment standards and WorkSafeBC requirements to meet all legal obligations and maintain a safe workplace.

Deploy a Marketing Strategy:

Creating a marketing strategy involves identifying your target audience, understanding their needs, and determining how your product or service meets those needs. You likely will have already done this when creating your business plan. You may need to gather further insights on customer demographics, preferences, and behaviors to develop your marketing objectives. 

Once you have clear, measurable goals aligned with your business targets, you can choose the right mix of marketing channels, such as social media, email, content marketing, and paid advertising, to help you meet those goals. When you are ready, create a budget, implement your plan, and regularly analyze performance data to refine and optimize your strategy for better results.

Ongoing Compliance and Growth

For ongoing compliance and growth, keep your financial records up to date and ensure timely filing of annual reports and tax returns. Continuously assess and adapt your business plan to facilitate growth and stay aligned with your business goals.

Business Financing for Expansion and Scaling

Once your business is in full swing, you may find that you require additional financing for the growth of your business. To secure financing for your business, the first stop is usually the bank. Banks are typically able to offer the best interest rates, but they also have more stringent requirements for loaning money. Unfortunately, not all small business owners will qualify for a bank loan. With lower interest rates comes a greater aversion to risk, resulting in strict criteria for approval. At Merchant Growth, we are able to fund businesses that are unable to qualify for a bank loan, and have funded 10,000+ Canadian small businesses over the past decade. 

Term Financing

We offer term financing for amounts ranging from $5,000 to $800,000, supporting a variety of small businesses across BC and the rest of Canada. Our application only takes a few minutes to complete, and funding is available in as little a 24 hours. Unlike traditional loans, we do not require collateral, and repayment is structured around your business’s cash flow, with flexible terms to suit your needs. 

Business Line of Credit 

Our business line of credit is a flexible financing option designed to provide businesses with fast access to capital when they need it. With a revolving credit facility, you can borrow funds as required and pay interest only on the amount withdrawn. This allows business owners to effectively manage cash flow and reduce over-reliance on credit cards. Our line of credit offers favorable interest rates and repayment terms tailored to your business’s needs, giving you the freedom to borrow, repay, and borrow again as needed.

Minimum eligibility requirements:

• Location: Canada
• Monthly Revenue: $10K
• Time in Business: 6 months

If you are ready to apply today, check out our quick application and see what your business qualifies for!

As the most populated province in Canada, Ontario is also home to the highest number of entrepreneurs, with almost 450,000 small businesses operating across the region. Whether you run a bustling startup in Toronto, a brick and mortar shop in Ottawa, or a family-owned business in any of Ontario’s diverse communities, accessing the right financing is crucial for long-term business success. 

Navigating the process of obtaining a small business loan can be daunting, so we’ve broken down your options in this blog. We’ve included which financial institutions can service small business owners, the types of financing available, how your business can use these funds, and how Merchant Growth can help.

Small Business Funding Ontario: Exploring Your Options

When the need arises to secure funding for your small business, it can be difficult to know where to start. One of the first things to consider is what type of lending institution you should work with. This is crucial to ensure you secure the best possible financing to support your enterprise.

Traditional Financial institutions

Traditional financial institutions such as banks and credit unions are often the first stop for small business owners seeking financing in Ontario. This is for good reason: banks offer competitive interest rates and a sense of reliability, making them a logical initial choice. Unfortunately, not all small business owners will qualify for a bank loan. With lower interest rates comes a greater aversion to risk, resulting in strict criteria for approval.

Additionally, the process of obtaining a business loan from a bank or credit union can be lengthy, requiring complex documentation. In-person visits to the bank are often required, taking valuable time out of a business owner’s day. Long waiting periods may be unsuitable for those who have a time-sensitive need for capital.

Government Grants

The Government of Canada has a wide variety of grants available at a provincial and federal level. For Ontario-based businesses, the provincial government’s website is a great place to start. Unlike loans, grants do not need to be repaid, making them an attractive source of funding for business owners. 

Securing a grant typically requires thorough research and understanding of the various options available at provincial and federal levels. Additionally, grants often come with specific conditions and are usually intended for particular purposes, such as investing in worker training, technological development, or supporting specific industries or demographic groups. It's crucial to identify the right grant that aligns with your business needs and goals.

The application process for grants can be demanding, often requiring detailed proposals and documentation. The limited availability of funds and high demand from other small businesses can make the process highly competitive. Despite these hurdles, the potential benefits of securing a grant make it a worthwhile option to explore for small business funding. However, it's important to recognize that grants are usually one-time financial injections. Once the funds are used, you may need to seek additional capital from other sources. 

Friends and Family

Turning to friends and family for a loan may be an option for some business owners. This approach often comes with lower costs and fewer formalities when compared with traditional lending options. While this method can provide quick and flexible funding, it is important to discuss and agree upon clear terms for repayment. Both parties should be mindful of unexpected scenarios, such as not being able to repay on time, or a sudden request for the funds to be returned earlier than planned. Carefully weighing the benefits against the risks is vital to ensure that this option does not compromise your valuable relationships.

Dilutive Funding

Some entrepreneurs opt to secure funding from venture capitalists or angel investors by offering a percentage of ownership in exchange for capital. This approach can provide not only financial support but also valuable expertise and connections from experienced investors. 

On the other hand, one of the key downsides of obtaining funding from venture capitalists or angel investors is the dilution of your ownership, as well as the obligation to share decision-making authority with your investors. If all parties do not share the same vision for the company’s future, conflicts can arise. Additionally, unlike a traditional loan where you repay a set amount, giving up equity means sharing a portion of your profits with investors indefinitely. It's crucial to ensure that this type of financial arrangement aligns with your long-term business goals, and that you are comfortable with the level of influence your investors will have.

Quick and Convenient Small Business Financing with Merchant Growth

If your business is ineligible for grants, or can’t meet the stringent requirements of a bank loan, an online business loan from Merchant Growth may be a suitable option for you.

Term Financing

At Merchant Growth, we offer term financing for amounts ranging from $5,000 to $800,000, supporting a diverse range of small businesses across Ontario and the rest of Canada. Our application only takes a few minutes, and funding is available in as little a 24 hours. Unlike conventional loans, we do not require collateral, and repayment is structured around your business's cash flow, with flexible terms to suit your needs. 

Business Line of Credit 

Our business line of credit is a flexible financing option designed to provide small businesses with quick access to capital when they need it. With a revolving credit facility, you can borrow funds as required and pay interest only on the amount withdrawn. This allows business owners to effectively manage cash flow and avoid over-reliance on credit cards. Our business line of credit offers favorable interest rates and repayment terms tailored to your business's needs, giving you the freedom to borrow, repay, and borrow again as needed.

Small Business Funding Use Cases

At Merchant Growth, we understand that small business owners in Ontario and across Canada have diverse needs and priorities when it comes to financing. Our flexible funding options allow you to support various aspects of your business's operations and growth. 

1. Cash Flow Management: Even profitable businesses can experience cash flow challenges. Our funding solutions provide immediate access to capital, helping you bridge gaps between receivables and payables, ensuring smooth operations.
2. Expansion Initiatives: Whether you're looking to open a new location, expand your current space, or enhance your facilities, our financing can provide the necessary capital to fuel your growth ambitions.
3. Inventory Purchases: Stay ahead of demand by stocking up on inventory. Our funds enable you to make bulk purchases, take advantage of supplier discounts, or invest in seasonal merchandise to meet customer needs.
4. Hiring Additional Staff: As your business grows, you may need to expand your team. Use our funds to cover hiring costs, onboard new employees, and ensure adequate staffing levels during busy periods.
5. Marketing Campaigns: Increase brand visibility and attract more customers with targeted marketing initiatives. Whether it's digital advertising, social media campaigns, or local promotions, our financing can support your marketing efforts.
6. Emergency Situations: Unexpected expenses can arise at any time. Our funds provide a safety net, whether that be for emergency repairs, equipment replacements, or other unforeseen financial challenges.

With Merchant Growth, you have the flexibility to allocate funds where they're needed most, empowering you to seize opportunities for growth and navigate challenges effectively. Don’t take our word for it though, and see what our customers have to say:

Ontario-based Customer Testimonials

The Decorating Centre

The Decorating Centre was founded in 2005 in Burlington, Ontario and works exclusively with trade professionals, offering high-quality, custom-ordered furniture and home goods. With a 25,000-square-foot showroom and over 3,500 registered interior designers, the Centre’s commitment to exclusivity and bespoke products has been key to its success. However, global supply chain disruptions extended manufacturing lead times from 6-8 weeks to 24-26 weeks, causing significant cash flow issues due to delayed receivables.

To address these challenges, The Decorating Centre secured financing from Merchant Growth, which provided the necessary funds to pay suppliers and their landlord, providing relief during a challenging period. 

Read more about The Decorating Centre’s experience working with us.

Avenue Tire Depot

Founded in 2004 by Mohamad Zeitoun, Avenue Tire Depot has become one of Ottawa’s top providers of quality auto parts and workmanship. Avenue Tire Depot is committed to providing honest service at fair prices and through this dedication, the business has established a reputation for exceeding customer expectations.

Avenue Tire Depot faced logistical challenges when trying to meet customer demands, requiring additional funds to maintain inventory levels. When traditional bank financing was not an option, they turned to Merchant Growth and received funds within one week, enabling the business to catch up on purchase orders and buy inventory for the busy season. 

Read more about Avenue Tire Depot’s experience working with us.

Securing a Small Business Loan in Ontario: Preparing Yourself for Success

Obtaining small business funding, whichever method you choose, requires careful preparation. Here's a quick overview of the documents you can prepare ahead of time to maximize your success:

• Relevant financial statements such as monthly bank statements, and any major contracts
• Proof of ownership
• Lease or deed to any physical spaces you rent or own
• Tax documents
• Your business plan

In Conclusion: Small Business Funding for Ontario Business Owners

At Merchant Growth, our mission is to make small business financing simple, with the below minimum eligibility requirements:

• Location: Canada
• Monthly Revenue: $10K
• Time in Business: 6 months

If you meet the above criteria, apply today, and our highly rated Customer Support team will be there to support you every step of the way.

Here at Merchant Growth we care what our customers think. Whether it’s our customer service, how our products have helped small businesses, or areas that we can look to improve. Helping our customers secure growth financing to achieve their goals, and offering the best customer service throughout that process are two important parts of the experience merchants have when dealing with Merchant Growth.

Reviews are essential to a business’s reputation. They show the credibility of our operations as well as build trust with companies that have not previously worked with us as well as those that may even be looking into online financing for the first time.

We love our clients – especially when we receive testimonials like the ones below. They highlight an array of positive experiences as well as key takeaways that provide additional reassurance for merchants working with or thinking about working with Merchant Growth.

But don’t just take our word for it; check out these Merchant Growth reviews to learn more about what you can expect when working with us.

 

What we appreciate about this review is that it highlights the full Merchant Growth experience: a quick and straightforward application that allowed the merchant to put their growth financing to use right away.

We are here to support businesses from a wide array of industries, located across the country: we’ve worked with over 10,000 businesses, lending out over $650 million to support their ongoing growth.

 

In addition to offering a straightforward online experience, you never have to go anywhere in person, and because of that, you can start your application anytime, anywhere.

The Merchant Growth team is also here to support you over the phone if needed and to answer any and every question you may have throughout the process. We want merchants to make informed decisions and feel confident and secure when it comes to choosing the right type of financing for their business.

 

We understand that getting financing can seem like a stressful process. When you consider the conventional experience that often comes with working with a traditional financial institution, it certainly makes sense. Having to schedule an appointment (most likely during your own business’s operational hours), assemble paperwork, go in person, and then have to wait to hear back, only to potentially get bad news, even after all that work. It’s mentally draining and simply inconvenient.

As this review highlights, a key benefit to our funding experience is the use of technology. Technology is a significant part of our application and adjudication process that allows us to individually assess each business efficiently, in addition to applications being reviewed by our team.

 

We consider repeat customers not only one of the biggest compliments we can get, but also a testament to our service. Customer service is a fundamental part of our operations, and we aim to support our clients as best we can. Not all businesses are able to secure financing from a traditional financial institution such as a bank. This can be due to a wider array of reasons, including the industry in which they operate or the general standing of the business. As we individually examine the “whole picture” of a business, we are able to support businesses from a large assortment of industries with their growth financing needs.

 

Besides repeat customers, recommendations among merchants that know each other showcase the positive impression that we hope to make on every customer that we work with. Our reputation is important to us both online and via word of mouth.

Whether your business needs funds for buying inventory, equipment, renovations, opening a new location, or even just paying bills, our capital can be used for any business purpose you need it for.

 

Our business philosophy is built on the success of our clients, and we truly appreciate the relationships that we’ve been fortunate enough to build.

We’ve been working with small businesses for fifteen years, and have invested in the ideas and creativity of these business owners because we believe in the value of small businesses as a fundamental part of the country. The innovation and dedication of business owners inspires us to be the best funding partner out there.

If you’re a present client of ours who has had a positive experience with us or one of our staff specifically – let us know! We’d love to hear from you, as always.

Check our review pages and case study page to learn more about the experiences of our clients all across Canada.

Merchant Growth Reviews Pages:

Merchant Growth’s Trustpilot Page

Merchant Growth’s Google My Business Page

Merchant Growth’s Case Studies Page

Please note that Merchant Growth's Canada Emergency Business Account (CEBA) Refinancing Program has now ended and the forgiveness incentive deadline has now passed. Businesses who have not yet paid back their CEBA loans have until December 31, 2026 to do so.

 

While the pandemic brought about a great deal of uncertainty and stress, in particular for small business owners in Canada, the Canadian Emergency Business Account (CEBA) program provided some relief to restaurants during those exceptionally challenging times. Through this program qualifying businesses could get up to $40,000 in funding, in addition to a $20,000 increase that was later made available, providing a total of up to $60,000 in relief funding to help businesses stay operational.

Now that the loan has come due, businesses should strongly consider the incentive offered by the federal government, whereby paying $40,000 back by the March 28th 2024 deadline entitles them to a forgiveness incentive of up to 33% of the loan.

For businesses in the restaurant industry who are unable to pay the bulk back on their own or who are unable to secure the funds from their financial institution, there are still options available.

If you’ve applied for refinancing with the institution that provided you your CEBA loan (such as a bank or credit union) by the January 18th deadline but have not been approved, you now have until March 28th 2024 to get financing from another source, such as Merchant Growth and still qualify for the forgiveness incentive.

Merchant Growth is actively supporting establishments in securing refinancing through our CEBA Refinancing Program, a crucial step towards unlocking the $20,000 CEBA forgiveness.

CEBA and restaurant challenges

The Canadian restaurant industry, grappling with economic disruptions intensified by the global pandemic, finds itself at a critical juncture. Navigating supply chain fluctuations and unpredictable consumer demands, restaurants are recognizing the need for strategic financial measures.

Restaurants were especially affected by closures, given that many rely on the in-person experience that they usually offer to make a substantial portion of their revenue. While some were able to increase their takeout and delivery offerings to try to still have some incoming revenue, many were simply not able to generate the same volume of sales as previously.

Since then, restaurants have faced ongoing challenges amid economic uncertainty, in particular rising food costs, which have had a significant impact on all businesses in the food industry, as well as consumer’s ability to spend on eating out. While business may have picked up more recently, and patronage is increasing slowly but surely, the long-term effects of the past few years have not yet been erased.

Because restaurants are not an essential service, there are inherent ebbs and flows based on consumer sentiment. While some feel as though restaurants are a luxury that they can still afford, there are those who have eliminated it from their lifestyle due to their own financial challenges.
The importance of the forgiveness incentive

$20,000 is a large sum of money in any context. But for business owners in the restaurant industry who already operate on razor-thin margins, the impact of that amount of money could even mean the difference between staying open or having to shut down the business altogether. The CEBA forgiveness of $20,000 is about more than financial relief, it’s about seeking stability for restaurant owners as well as their employees that all depend on the business remaining operational.

Whether or not a business gets financing or not, after the January 18th deadline, restaurant owners will have to start paying back the loan. The point of consideration then is the shift in the total value owed from $40,00 to the full value of $60,00 plus interest. This will in turn create a further financial burden on those restaurants which now need to come up with additional funds to meet the repayment terms.

Furthermore, in some instances, once the December 2026 full repayment value comes due, restaurant owners may then even face the reality of taking future financing on the $60,000 loan, resulting in an even higher total cost to those business owners.

Merchant Growth's role

At Merchant Growth, we’re committed to fueling restaurant owners' businesses and their continued success. Whether that’s opening another location, buying ingredients, hiring staff, building a new patio, or fundamental operational and business costs like repaying a CEBA loan.

With our over 15-year history as a small business lender, not only have we become a top lender in our space, we’ve also become very familiar with both the challenges and opportunities for growth that restaurant owners face.

Our CEBA Refinancing program is about supporting restaurant owners and helping them take advantage of the forgiveness incentive in order to ensure that they do not miss out on the $20,000 incentive due to being able to pay back the loan on their own, or being unable to secure funding from a bank.

Eligibility and application process

At Merchant Growth, we believe that getting funding should not take away from actually running your business, and this is a principle that is also fundamental to our CEBA Refinancing program.

That’s why we offer a fully self-served, online application where you can fill out your personal and business information, confirm your identity, and be presented with the offers available to you all in a single process. However, should you have any questions, concerns, or issues come up as you are applying, our team is here to help you.

Before applying for CEBA Refinancing with Merchant Growth, restaurant owners should be aware of three basic eligibility requirements.

• Be an eligible holder of a CEBA loan
• Have made an attempt at refinancing your CEBA loan at the financial institutions (bank, credit union) that provided you with CEBA loan by January 18th, 2024
• Monthly revenue of $10K
  • Please note that this is monthly and not an average of monthly revenue.

If you’re ready to move ahead with applying, to have the process go as smoothly as possible you should have the following information on hand:

• Personal information (name, address, etc.)
• Business information (name, legal name, time in businesses, address, revenue)
• Information about your CEBA loan (what institution it is held with, amount, amount paid back)
• Digital copies of bank statements from the past 6 months
• Piece of government-issued photo ID (besides a passport)

During the application process you’ll be presented with three different offers that you can choose from that best meet your needs.

What happens after applying

Following your application, it will take approximately two (2) business days for the funds to be deposited into your account.

Please ensure that you successfully transfer the funds to your CEBA account in order to pay off that balance. If applicable, restaurant owners are also required to ensure they’ve secured any additional funding from other sources should they decide to only take a partial balance with Merchant Growth. Otherwise, in both of these cases, failure to properly complete the repayment of the CEBA loan will render a business ineligible for the forgiveness incentive.

Looking forward

While no one can predict the precise future of the Canadian restaurant industry, there is an inherent resilience and optimism among all small business owners, who are a fundamental part of the country’s economy. Ensuring that your restaurant takes advantage of the forgiveness incentive is about a strategic, long-term investment in your business.

Merchant Growth is more than a financial partner; it is a longstanding collaborator in the narrative of Canadian restaurants, having worked with restaurants of all types across the country.

By offering tailored refinancing solutions, Merchant Growth plays a pivotal role in helping restaurants not only unlock the full potential of CEBA forgiveness, but also their ongoing growth as the industry continues to regain its footing.

To date we've been able to help hundreds of restaurant owners pay off their CEBA loans and benefit from the forgiveness incentive, and we look forward to continuing to support many more ensure they are able to take advantage of the savings that the government is offering to those that pay off the loan.

Visit the Government of Canada's official CEBA website for additional information about CEBA loans.

We invite you to take advantage of the forgiveness incentive and up to $20,000 in savings, as you look ahead to what’s next for your restaurant business.  Learn more about Merchant’s Growth CEBA refinancing program and get started today!