Most small business owners in Canada start at the bank when they need funding. And most of them find out pretty quickly that banks care more about credit scores and collateral than how much money your business is actually making. If you’re looking for how to get business funding based on sales in Canada there are lenders that work differently.
What Does Funding Based on Sales Mean
A lender looks at how much money your business is bringing in. Bank statements, transaction history, monthly revenue. If the sales are consistent they advance you capital against your future receivables. You pay it back through daily or weekly payments over a set term with a fixed cost attached.
A bank loan decision is based on your credit history, years in business, and what collateral you can offer. Funding based on sales doesn’t focus on any of that. The revenue your business generates is what the lender cares about. That’s how business funding based on sales works in Canada.
What You Need to Apply
Recent bank statements showing your business revenue. A short application form. Basic info about your business.
Larger deals require more documentation but to get started and see if you qualify that’s all we need. Nothing that would take you more than a few minutes to pull together.
How Fast Can You Get Business Funding Based on Sales
Banks take weeks. Sometimes over a month depending on how many times they come back asking for more documents.
At Canada Capital we’ve funded deals the same day the application came in. Most clients hear back within 24 hours. We’re reviewing recent sales not going through years of tax returns and financial statements.
Who Can Get Business Funding Based on Sales
Restaurants, retail stores, e-commerce businesses, trucking companies, contractors, salons, professional services. Any business with consistent revenue.
A hair salon doing $15,000 a month looks different than a trucking company doing $200,000 a month. The amounts and terms are different but the process is the same. We look at what’s coming in and structure something around that.
Credit doesn’t need to be perfect either. We’ve funded business owners who got turned down at banks and other lenders because of their credit. Their businesses were doing well and that’s what mattered to us. More on why banks decline businesses here.
What Can You Use It For
Payroll, inventory, equipment, hiring, marketing, renovations, covering a slow month, fronting costs on a new project. No restrictions on how the money is spent.
What Does Business Funding Based on Sales Cost
More than a bank loan. No collateral means the lender takes on more risk and the pricing is higher. That’s how it works across the industry.
The cost varies depending on how much capital you’re getting, how long the term is, and your business profile. We show you everything before you commit. Total cost, payment amounts, term length. Our team goes over the numbers with you so you can make the decision yourself.
Other Options
Funding based on sales is one way to go. We also offer unsecured business loans, business lines of credit, small business capital, and revenue based financing. Apply here and we’ll go over what makes sense for your business.