Product

Business cash advance Canada: an advance sized on all your deposits.

Not every Canadian business takes payment by card. A business cash advance looks at total deposits, which suits trades, B2B and invoice-driven companies.

Apply Now Do I Qualify?

✓ Checking what you qualify for does not affect your credit score.

How it differs from a card-based advance

A traditional merchant cash advance is sized on card volume and often repaid by a split of card settlements. A business cash advance is sized on all deposits into the business account: cheques, e-transfers, EFTs and card settlements together.

That matters for a contractor paid by progress cheque, a distributor paid by e-transfer or a clinic with a mix of insurer and patient payments. Their card volume understates what the account really sees.

Worked example

A commercial cleaner in Calgary deposits $48,000 a month, mostly by EFT from contracts. A $30,000 advance at a 1.30 factor repays $39,000.

Cost: $9,000.
Payments are weekly, so over about 20 weeks that is roughly $1,950 a week.
The payment is about 16% of monthly deposits, which the cleaner tests against payroll before signing.

What the funder reads

Average monthly deposits over the last several months, and whether they are steady or seasonal.
Average daily balance, and the number of low-balance or negative days.
Time in business and any existing advances.
Whether deposits are business revenue rather than transfers between your own accounts.

Typical starting points

Monthly revenueTypically from around $20,000 a month in deposits for Canadian files. The exact line varies by funder and by file.

Time in businessTypically about 12 months. Newer businesses can be reviewed, but the options narrow.

Account healthLimited low-balance or negative days. Funders read the last few months of bank statements for this.

CreditScores from 500 are considered. A score of 600 or higher opens more options and better offers.

DocumentsA signed application and recent business bank statements, typically the last four months.

Existing advancesFiles with an existing advance can be reviewed, including second position.

Common questions

Is it the same as a merchant cash advance?

The mechanics are similar. The difference is what the advance is sized on and how repayment is collected. A business cash advance is built around total deposits.

Do I need card sales?

No. Total deposits are what is assessed.

How is it repaid?

Usually a fixed daily or weekly debit from the business account, or a percentage of deposits.

What if I invoice customers on terms?

Deposits are what count, so the timing of when invoices are paid shows up in the pattern. Funders look for consistency across months.