Merchant Advance Program
Take Advantage Of A Merchant Cash Advance
Using the simple to obtain DLC Merchant Cash Advance, you can address a variety of business requirements or use it for personal reasons such as paying your mortgage down or contributing to RRSPs. There are no limitations regarding how you spend your merchant cash advance – use the funds as you see fit.
Popular uses for a merchant cash advance include:
1. Purchasing inventory. Available cash allows you to take advantage of special deals or unexpected opportunities when they arise. Can you negotiate with your suppliers to get a discount of 5% or 10% when paying by cash? If so, you should be considering a DLC Merchant Advance.
2. Growth capital expenditures. Use the funds for renovations, equipment purchases, advertising or business acquisitions.
3. Debt reduction. The money can be used to cover emergency cash requirements such as tax payments or other obligations.
4. Down payment on business office purchase. Want to own your own business property but you’re finding that coming up with the down payment is a challenge? This could be a great way to help make it happen.
5. Topping up you RRSPs. It can often be difficult to put money aside for an RRSP. But by making a lump sum contribution of, say $30,000 from a DLC Merchant Advance, you would have $30,000 in an RRSP and up to $12,000+ income tax return or tax reduction (check with your accountant regarding your specific situation to confirm how this could impact you). Since many business owners already have a shareholder loan to the company, this should have limited tax implications (again, it’s important to check with your accountant for your specific situation).
6. Lump sum mortgage payment. If you have prepay privileges or if your mortgage is currently open, a DLC Merchant Advance is a great way to get a large chuck of principal paid down that could help you save thousands in interest and years in amortization. Do it again next year and have your property paid down years ahead of schedule.
7. Home renovations. Get all those renos done quickly by obtaining a lump sum that could possibly save you money and significant personal time in managing such projects.
How it works
We average the monthly volume of debit and credit card transactions your business receives and set up your DLC Merchant Advance for approximately that amount. A small withholding comes off each future debit/credit transaction (ie, 10%) to pay back the advance over the next year – secured against your future sales rather than conventional ways such as against property. A non-reporting account, a DLC Merchant Advance typically has little or no effect on your borrowing capacity. If you have a couple of slow months, you pay less. If sales are higher, it gets paid off faster.
How to qualify
In order to qualify for a DLC Merchant Advance, you must be in business for at least one year, and average a minimum of $3,000 per month in debit and credit card transactions. Even if your credit score is quite low, we can usually get your application approved. It’s more about historical sales than your credit.
As always, I’m here to help, so please email or call me to apply or for more information. We have a variety of financial tools available to help you meet your goals.