How to Get Financial Support When Starting a Business in Toronto

September 30, 2019 5:40 pm Published by Leave your thoughts

So far, 2019 has been a fantastic year for Toronto. Not only did the Toronto Raptors make history by winning their very first NBA Championship this summer, but the city also recently made headlines for becoming the fastest growing city in North America. 

Not only is Toronto famous for its dynamic multiculturalism, world-class arts scene, and incredible food, Toronto has also become a destination for business across Canada and around the world, eclipsing the San Francisco Bay Area as the fastest growing market for tech jobs in North America.

All of this means that if you want to start a business in Canada, Toronto is one of the best places to do it.

But for all the access to markets and resources you get by making Toronto your headquarters, raising start-up capital can be a major challenge. Not only are there lots of other businesses competing for a finite amount of funding, securing financing through a bank can be nearly impossible for new businesses.

So how can business owners get the money they need to start a business in Toronto?

Merchant Capital Advances: An Exciting Alternative

Given how difficult it can be for small businesses and start-ups to get funding through the normal banking channels, perhaps it isn’t surprising that, as more funding alternatives become available, a growing number of entrepreneurs are exploring how private business loans in Toronto can help them secure the funding they need without having to jump through the hoops required by the big six banks.

One of the most popular of these alternatives is the Merchant Capital Advance (MCA). Merchant Capital Advances are designed to help companies that need short and long-term funding for a variety of reasons and who are for one reason or another not able to get a traditional bank loan.

At SharpShooter Funding, we have witnessed first hand just how big a difference MCAs can make for businesses that have great potential for growth but just need a little extra capital to get started.

If you’re tired of being told that the bank simply can’t extend you the credit or capital you need to grow your company, get in touch with us to find out how MCAs can help, or keep reading to learn more about how this unique form of funding works.  

The MCA Advantage

The MCA advantage can be summed up in a few words: fast, affordable funding with flexible repayment options that won’t affect your credit score.

However, one of the most common questions we get from businesses interested in applying for support from SharpShooter Funding is about the difference between business loans vs MCA — are these actually distinct kinds of funding, or are they simply different words for the same thing?

The truth is that MCAs are distinct from business loans in a few major ways. When applying for an MCA, you essentially purchase a tranche of funding: for example, a $10,000 MCA might cost $12,000, but this is a fixed expense. Unlike a loan, which charges interest that can quickly get out of hand if you can’t pay it back right away, you know going into the agreement how much the funding will cost.

This is why getting an MCA won’t affect your credit score. It’s also why we can approve you for an MCA within as little as three hours after receiving your application.

Furthermore, when it comes to paying the MCA back, there are flexible options available. Most companies opt to make regular payments on the amount every week, so they aren’t faced with having to repay a lump sum further down the road.

Given how quickly your business can get capital through an MCA, and how easy it is to set up a payment plan that works for your particular industry, perhaps it isn’t surprising that this is one of the most popular new forms of funding available for Canadian start-ups who have been denied traditional bank loans.

Who Can Benefit From an MCA?

Clearly, an MCA is an exciting option for any company looking for ways to secure start-up money or capital to grow or expand business operations. But is an MCA right for your company?

At SharpShooter Funding we work with many businesses in a wide range of different sectors of the economy. If you want to find out more about the various industries we work in where companies have benefitted from our flexible approach to funding, here are just a few of the types of businesses we have recently worked with:

  • Retail
  • Beauty
  • Logistics
  • Automotive
  • Medical
  • Dental
  • Florist
  • Restaurants
  • Catering
  • Fitness clubs

One of the reasons why MCAs are so popular across such a diverse range of industries is because the MCA format provides capital quickly and transparently, and offers companies options when it comes to managing payments.

If you want to explore your options for alternative funding, call us to learn more about how SharpShooter Funding can help you get your business the capital it needs to unlock future growth.

Whether you are looking for long-term funding, a merchant capital advance, or are simply exploring your financing options, we make applying for funding easy, and can process your application any day of the week. 

For up-and-coming entrepreneurs who want a place with local dynamism and a global reach, few cities are as perfectly situated as Toronto. A growing economy, bustling finance industry, and access to major logistical networks all set Toronto apart as one of the most exciting North American cities to do business in in the 21st century.

If you want to build your business in Canada’s largest city, get in touch with SharpShooter Funding to find out which financing options are best for your business!


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