A merchant cash advance (MCA) is a form of business financing where a company receives a lump sum of capital in exchange for a percentage of its future credit card and debit card sales. Unlike traditional loans, MCAs don’t have fixed monthly payments — instead, repayment is automatically deducted as a small percentage of daily or weekly card transactions.
This structure makes MCAs particularly attractive for businesses with fluctuating revenues, as payments naturally decrease during slower periods and increase when business picks up.
The MCA process in Canada is straightforward. You submit a simple application, the provider evaluates your business based on revenue trends (not just credit scores), you receive an offer detailing the advance amount and factor rate, and once accepted, funds are deposited into your account — often within 1 business day.
Canadian MCA providers typically require minimum monthly revenue of $10,000+, at least 5 months in business, FICO 400+ credit score, and at least 51% business ownership.
Compared to traditional bank loans, MCAs offer approval in 2–4 hours versus 2–8 weeks, accept FICO 400+ versus 680+, require no collateral, and feature revenue-based repayment rather than fixed monthly payments.
When choosing an MCA provider, look for transparent pricing with no hidden fees, reasonable factor rates between 1.1 and 1.5, fast funding with same-day or next-day deposits, dedicated support with a personal funding advisor, and early payoff discounts.
CanLend Capital offers all of these features, making it one of Canada’s most trusted MCA providers for small businesses.