Merchant Cash Advance


growing plant

The Challenge

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

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The Solution

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

 

Advance assumptions:

– 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