Use case

Emergency repairs and shortfalls funding: how to size it and what to watch.

A failed compressor, a flooded basement or a lost customer does not wait for a bank.

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

What this looks like

A failed compressor, a flooded basement or a lost customer does not wait for a bank.

Unplanned costs are the most common reason an owner looks at an advance. The need is real, the amount is usually known, and the clock is short.

How to size it

Size it to the quote in hand, plus a small cushion for installation or downtime. A request equal to a documented repair estimate is easy to underwrite and easy to repay.

Illustrative arithmetic

A restaurant depositing about $72,000 a month asks for $20,000 to replace a walk-in cooler. At a 1.25 factor the payback is $25,000, a cost of $5,000. Over roughly 4 months that is about $298 per business day, or close to 9% of monthly deposits.

Total payback: $25,000.
Cost: $5,000.
Payment: about $298 per business day, close to 9% 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.

Which structure tends to fit

A short advance suits an emergency because speed matters more than the lowest possible cost. After the crisis, consider whether a cheaper facility could take over.

Where it goes wrong

Taking more than the repair costs because the money is available
Not accounting for revenue lost during downtime
Skipping insurance claims that could cover part of the cost

Before you apply

Get a written quote and the earliest delivery date
Check whether insurance or a warranty applies
Plan how the payment fits during the downtime

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

How much should I ask for?

Ask for the amount you can name in dollars and tie to a quote, invoice or schedule. A smaller, specific request is easier to approve and cheaper to repay.

Which structure is best?

It depends on whether the need is a one-time purchase or a recurring gap. See the comparison pages for the trade-offs.

How fast can I get it?

Decisions are often the same day on a complete file, and funding can follow the next business day.

Keep reading

Funding use casesPayroll, inventory, expansion and more Merchant cash advance CanadaHow an advance against future card sales works Revenue-based financing CanadaRepay a fixed multiple as a share of revenue Cash-flow affordability calculatorCan the month carry the payment?Underwriting situationsCredit, NSFs, time in business and more

Educational information only. It is not legal, tax or accounting advice.

See what you qualify for

Same-day decision. Applying takes a few minutes and will not affect your credit score.

Apply Now →