Merchant Advance Capital

Merchant Advance Capital

April 20, 2016 09:00 ET

Alternative Lender Merchant Advance Capital Raises Credit Line Flexibility Bar for SMBs Across Canada

'Give Yourself Credit' Provides Canada's Underbanked Businesses With More Financing Options With Launch of New Unsecured Line of Credit

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 20, 2016) - Canadian small business lending became more flexible today with the launch of 'Give Yourself Credit,' a new unsecured line of credit designed to support Canada's underbanked SMBs. Launched by Merchant Advance Capital, the new line of credit will provide small businesses across Canada with more flexibility and control over their financing at a lower cost, and can be secured without stepping foot into a bank.

"We wanted to develop a product that would put more control back in the hands of Canada's underbanked business owners, at a lower cost - that's what small businesses want when it comes to their finances," said David Gens, the CEO of Merchant Advance Capital.

Businesses are granted an unsecured line of credit based on performance, instead of solely on credit scores or business assets. Unsecured lines of credit are usually only available through banks and credit unions, which are more limited in the ways they can evaluate potential borrowers.

"We've heard from customers that while it's convenient and painless to be able to get a loan from us, it doesn't give them the flexibility to only use what they need and pay it down with ease when they have cash available. For many small businesses in Canada, this is a game-changer as they will feel more empowered, knowing they have a reserve of accessible funds should any unplanned expenses arise," Gens added.

Give Yourself Credit line of credit works like a personal line of credit, allowing customers to apply for an amount based on business performance and be approved in advance. This allows business owners to wait until the time is exactly right before making major moves or purchases, as customers only pay interest when they tap into the approved amount on their line of credit.

As an alternative lender, Merchant Advance Capital is able to serve a wider range of small businesses than traditional institutions, as they can factor in less conventional indicators of creditworthiness as well when evaluating potential customers, such as benchmarking them against their industry or the overall stock market, as well as social media ratings.

Merchant Advance Capital's line of credit also often carries a lower rate than a business loan or merchant advance, which is why Gens encourages businesses to apply for a line of credit, especially if a business is borrowing with plans to grow or expand operations. On top of a minimum weekly payment, the customer can choose to overpay on their loans at any point and close off their balance so they are not locked into paying interest on an outstanding balance for longer than necessary.

"In cases where a company might be expecting to grow substantially through a major purchase, the company could pay down the line of credit through cash generated from the incremental growth revenues before any substantial interest ever accrues," he said.

The Give Yourself Credit line of credit is available to select businesses with rates starting at 13.95 per cent. For more information, visit http://merchantadvance.com/business-line-of-credit/.

About Merchant Advance Capital

Merchant Advance Capital is one of Canada's leading online lenders on a mission to help small and medium-sized businesses grow. They leverage technology and data science to reduce risk and provide more control, lower fees and flexible repayment schedules. Merchant Advance Capital was founded in 2010 and has now grown to include offices in Toronto and Vancouver and serves clients Canada-wide.

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