Canadian bank lending volumes are up - but not for small businesses!

The Royal Bank of Canada recently reported growing profits earlier this week and the bank has begun to see an increase in loan demand and lending volumes. Large corporations are finally making more investments in growing their businesses - for many years they held back due to economic concerns - but they are finally spending again and tapping the banking well.
I recently read this Globe and Mail article that went into greater detail about what Canada's biggest bank (RBC) is doing and seeing in the market. What's interesting is that although their lending volumes are up, the small business sector is not seeing any of that at all. Big businesses are being funded but small businesses are not. The banks overlook this important space (a MASSIVE part of our Canadian economy and job creation) and don't spend the resources required to properly serve it. This has been a secular trend that has continued for decades now and shows no signs of slowing.
Fortunately, private companies interested in funding this part of the market are active, growing, and coming up with more and more new ways of serving small businesses. At Merchant Advance Capital we recently introduced a merchant advance loan product in addition to the traditional merchant advance. This allows businesses that don't accept as much debit/credit to receive funding through us under a fixed daily payment structure. We are super excited to be offering this - we love the idea of being able to serve more small businesses that need growth capital for expansion. We want to help each and every one of you.
The holiday season is upon us and I would like to take this opportunity to wish you happy holidays. To all of our clients, referral partners, service providers, investors, friends, and family - may you have a happy new year and we look forward to growing with all of you into 2013.
Yours truly,
David Gens - Chief Executive Officer - Merchant Advance Capital LP