Situation

Business funding when one owner has two businesses: how it is read and what helps.

When one owner runs two businesses, each file is read on its own revenue.

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How is a file read when one owner runs two businesses?

Short answer: Each business is read on its own account. A reviewer needs to know which business is applying, see statements for that business and understand any transfers between the two. Separate accounts, clear records of intercompany transfers and a note on how the businesses relate make the file easy to read.

Key facts

Each business is read on its own account
Transfers between them are removed from revenue
Say clearly which business is applying
The owner may guarantee for both

How this is read

When one owner runs two businesses, each file is read on its own revenue.

Owners with more than one business sometimes move money between them. A funder reviews the business applying, so transfers from the sister company are not revenue and payments from it can look like support.

What helps

Separate bank accounts for each business
Clear explanation of shared costs
Revenue that stands on its own
Disclosure of obligations in both businesses

What hurts

Regular transfers propping up the applicant
Shared accounts
Undisclosed advances in the other business

A sensible plan

Apply in the name of the business that will use and repay the funds, with its own statements. Explain any intercompany transfers.

Illustrative arithmetic

A restaurant depositing about $70,000 a month asks for $25,000 for kitchen repairs. At a 1.24 factor the payback is $31,000, a cost of $6,000. Over roughly 6 months that is about $246 per business day, or close to 7% of monthly deposits.

Total payback: $31,000.
Cost: $6,000.
Payment: about $246 per business day, close to 7% of monthly deposits.

Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.

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.

One more thing that helps

If both businesses are healthy, keeping them financially separate makes each one easier to fund. Intercompany loans should be documented.

What to prepare

Statements for the applying business only
A note on intercompany transfers
Obligations of the other business

Keeping two businesses financially separate is good practice for taxes and liability as well as for funding.

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

Canada Revenue Agency: Keeping records

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

Common questions

Can I combine revenue from both?

Not usually. Each business is read on its own.

Do I need to disclose the other business?

Yes, especially its obligations and any guarantees.

Does a personal guarantee cover both?

It covers the agreement you sign. Read it.