The True Impact of Growth Capital
Amansad Financial recently entered the merchant cash advance sector so that we would have the chance to see how different small business owners throughout Canada have put the money to work – and seen their businesses flourish as a result. Our company has always been dedicated to helping hard working Canadians get access to the funding that will get them to the next level in life, whether it is finding the mortgage that will get them into the home of their dreams, even though banks might have found a couple of chinks in their borrowing profile, and merchant cash advances have helped us bring that same approach to our small business clients. That is why we work with each client – first and foremost – to see if a merchant cash advance is the best decision for their company, and then to help them come up with a plan for putting that plan to the best possible use. We believe that our clients are the experts – after all, they are the ones who got a small business up and off the ground – and there are times when the experiences we have seen other borrowing companies go through help us advise new clients of the best paths forward.
If you’re a small business owner and you take out a merchant cash advance, you can obviously use the money however you want. If you want to use it to go and buy a boat or a vacation home, you can – and you’ll be paying for it out of your business funds. But as a sole practitioner, you can do that in Canada. The risk, of course, is that your business might fall off over time and the payments each business day might actually do more harm than good. But we know of a number of successful business owners who have used that form of financing to pay for personal expenditures and still emerged from the situation well in the black.
Obviously, we entered this sector in the hope that our clients would take the merchant cash advance and use it to turn the corner or take the next step in their business. One of our competitors has a client who owns a small pet store on the outskirts of Calgary. A lot of the big box retailers have eaten into his business, particularly in the area of pet supplies, but the personal touch that he has maintained with his customers has kept many faithful clients. His shop is an area that is going through gentrification, and some of the young professionals moving in around him have taken a liking to his shop as well. There is another area of Calgary that is going through a similar renaissance, and he had given thought to opening another location over there. A lot of these new neighborhoods are designed to foster walking rather than driving, so having a local pet shop like his over there could double his income. He came to us for a merchant cash advance to give him cash on hand after he signed the new lease and acquired the equipment he would need to operate that store. Because of his low risk profile, we were able to secure a merchant cash advance with just a 22% fee (the difference between the advance and the total of his repayments – this can be as high as 40% in some cases). Just a year later, his revenue had more than doubled – gone up by 130%, in fact – so the fee was well worth it.
We want to help our clients write stories like this for themselves and for their families. We’d love to talk to you about how we can help your small business. Please call or email one of our merchant cash advance experts today, and we can go through the process with you and help you decide if this is the financing that can accelerate your business.