Small businesses face an increasing challenge in obtaining loans to fund their ongoing operations:
– Lending to small businesses contracted in the last two years by $40b
– 55% of small business owners attempted to borrow in 2009; only 40% had their credit needs met completely.
– 50% of small business applications for new credit lines were turned down
– 83% of small businesses report using a credit card to support their business
Many small businesses have been forced to turn to commercial credit cards to finance operations, a very high-cost option.
Can-Am Payment Systems’ Merchant Cash Advance provides a cost-effective, convenient alternative to access the working capital needed to sustain your business.
How it works
– Apply for an advance amount of a portion of your average Visa/MasterCard monthly volume total.
– The daily retrieval percentage will be up to 20% of your daily credit card deposit.
– Repayment is conducted at a predetermined factoring rate.
– Estimated length of contract will vary from 5-7 months.
Merchants meeting the following criteria will be considered for an advance:
– Minimum one year in business
– Minimum $5,000 in Visa/MasterCard processing per month
– Minimum 12 months processing history
– No bankruptcies
– No open tax liens or judgments
– SIC guidelines follow FDMS standards, with some limited additions
– Estimated payback time typically ranges from 5-7 months
– Average daily retrieval rate of 20%
– Advance amount of up to 100% of average monthly processing