Guide

Cash planning for expanding into the United States a practical guide.

Selling into the US is a natural next market for many Canadian businesses. The cash demands are often bigger and longer than expected.

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How much cash does a Canadian business need to expand into the US?

Short answer: More, and for longer, than most owners expect. Budget for research, travel, trade shows, legal and tax advice, any US entity, marketing and initial inventory, many of them months before the first sale. US distributors often pay on 60 or 90 days, so plan collections realistically and fund the expansion in stages.

Key facts

Many costs arrive before the first US sale
60- to 90-day payment terms are common
Currency exposure grows with US revenue
CanExport may share market-development costs

Overview

Selling into the US is a natural next market for many Canadian businesses. The cash demands are often bigger and longer than expected.

Estimate the up-front costs

Include market research, travel, trade shows, legal and tax advice, US entity setup if needed, marketing and initial inventory. Many costs arrive months before the first sale.

Federal programs such as CanExport may share some market-development costs.

Plan for longer payment cycles

US distributors and retailers often pay on 60- or 90-day terms. Cross-border shipping and customs add time.

Forecast cash with realistic collection times.

Manage currency

Revenue in US dollars and costs in Canadian dollars create currency exposure. A strong Canadian dollar reduces what US sales are worth.

Consider a US-dollar account and talk to your bank about hedging options for larger volumes.

Watch trade rules

Tariffs, duties and rules of origin can change. Confirm the current treatment of your products and keep documentation that supports origin claims.

Export Development Canada offers insurance and guidance for exporters.

Fund in stages

Expand one market or channel at a time and use early results to justify the next step. Short-term funding can support a defined test; long-term expansion usually needs longer-term capital.

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.

Your checklist

Budget the first market test.
Plan for 60- to 90-day payment terms.
Open a US-dollar account.
Confirm tariff treatment of your products.
Check CanExport and EDC support.

Guides like this one are general education written for Canadian owners. They are most useful when you turn them into a few concrete actions with dates, and revisit them when your numbers change. If funding is part of your plan, the same preparation that makes the plan work, clear numbers and a specific purpose, also makes an application faster and stronger.

Talk it through

Merchant Fund Express reviews Canadian businesses in every province and territory. If you would like a specific answer for your business rather than general guidance, send a signed application and your last four months of business bank statements, or call (305) 384-8391 first to ask a question.

Sources and review

Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.

Common questions

Is this advice for my situation?

It is general education. Your file and agreements are specific, so read them and ask questions.

What should I do next?

Gather four months of statements and write what the money is for in one sentence.

Can you help me apply?

Yes. Apply once and the file is matched to the structure that fits.