Are you worried about the instability in the American banking & lending melt down, foreclosures and the long list of banks closing their doors? We're not immune up here in Canada. Well we are and we aren't. Allow me explain.

When the USA gets sick, Canada usually gets a cold. 

Canadian banks have massive national networks whereas American banks are mostly regionally focused. We have deposit insurance (provided by CDIC) as do Americans (FDIC), however that will not help the clients of IndyMac Bank who have deposits or investments in excess of the insured limits. Canadian strength truly lies in our limited number of charted banks within our national network. 

There have already been effects here in Canada. Within the past year alone, several of our key alternative lenders have either scaled back, pulled out or shut down entirely. Here is a short list that is not even close to complete: GMAC, Accredited Home Lenders, Money Connect, Xceed and recently the involvement of the federal government pulling out 40 amortization's and dropping the 100% financing available.

Have we ever had a bank failure here in Canada? Yes, we have had many, CDIC's own website list's at least 43 examples since 1970 without any since 1986! Even during the depression when most of the American banks were closing their doors, Canadian institutions remained mostly intact. 

The situation is likely to be unfolding rapidly over the next few months, and anyone who claims to have all the answers is misguided.  As a professional, I closely monitor this situation and how it will affect the demand for the Merchant Cash Advance industry. As the credit crunch expands, our terms continue to remain the same to the Canadian market. Fast, easy and risk free money.

Cheers,

John Meloche

A client of mine who owns a growing auto repair shop in Saskatchewan had been offered an opportunity from one of Canada’s largest muffler repair franchises to expand and take on their name. That required him to upgrade his shop with vehicle hoists. As well, to meet some very tight safety regulations, it would cost him more than $50,000.

Although he qualifies for more than $50,000, this client typically would call on me once every 8 months or so for much smaller advances of about $10,000 because that’s all he ever needed. The advantage to my client was while in the meeting with the potential franchise, he was able to be confident when they asked the question: “Is funding for the new hoists available to you?” His easy and confident answer was “Yes”.

Since then, my client has achieved huge successes and unfortunately does not come to me so often for merchant cash advances anymore. Although he has referred many other clients to me, I look forward to funding his next big expansion because now he qualifies for $100,000!

I had this client who had received money from an American merchant cash advance company. Unfortunately, this client got hooked into a “lock box” situation which required him to divert his batch out funds into a third party account which ended up delaying his batch out by 4 days!

This ultimately ended up putting my client in a worse off situation than before he had the money because now his checks were going NSF and he couldn’t sleep at night not knowing when the funds he already processed would become available to him.
This client called us from SynergyMerchants.com after searching for “Canadian Merchant Funding” and he described how much of a problem he was with his business. He was furious with the American merchant cash advance company because he was stuck until his advance was completely paid off.

Under most circumstances we would not be able to fund a company who already had a merchant cash advance with another company. However, in this circumstance the client had already repaid more than 50% of his advance and we really wanted to do everything we could for this guy to get him out of the situation he was in.

In the end, we ended up paying off the previous merchant funding company, giving the business even more money and we were still able to beat the original rate of the merchant cash advance given by the American company.

This business owner is one of our happiest clients as he has assured me that we truly saved his business.

This particular client truly represented one of the most classic fits for a merchant cash advance. He had started his business at the beginning of last year and had an excellent summer and fall for pool openings and pool closures. Naturally, the winter was not quite as successful. As expected, business was substantially slower than the previous season.

After the hard fought winter, his business finally recovered with an incredible second season, opening and closing pools. Generating 60% more clients that year, he knew there was an incredible year to follow. However, the question remained. How do I make it past the slow season?

When this business owner finally discovered Synergy Merchant Services' cash advance program, getting him money was as quick as getting his statements and autographs.

We gave him $65,000 to hold his business over until the next season. Easily enough money for my client, he finally avoided the stress and headache of having to wonder if the winter season would “freeze” his business.
Now I know he sleeps well at night regardless of how his business is doing in the slow season.

Recently, Synergy Merchant Services started funding a major chain of gas stations across the Maritimes in Eastern Canada. We were actually contacted by the primary corporate head office to discuss funding options for a forced technology upgrade that all of their stations would be required to complete by the end of 2008.

Together, we developed funding packages that suited each individual location uniquely and alleviated the headaches for their franchisees to find funding for this mandatory upgrade themselves.

In the end, we funded 18 locations within only 10 business days thanks to a very coordinated effort between their corporate office and ours.

This goes without mentioning but, the repeat business is what matters most. As of now, we are proudly the recommended form of working capital for this major chain of gas stations.

This client had been selling heavy farm equipment for 25 years but one of the biggest challenges was not in finding clients to buy his equipment, but more for his clients who needed to find the funding to purchase his equipment and could not afford to.

Today, we are the official recommended source of financing for all his commercial clients and now that this is an option for them, we have made my client more capable to sell more inventory than before and get those bigger machines out the door in less time. This, of course, has allowed for him to grow both his and his clients' businesses by selling them the equipment they need.

That way, he would begin building his equity and eventually qualify for a merchant cash advance.

After I helped my client get established with Moneris for his P.O.S. processing, his business not only started to grow by allowing his delivery drivers to accept credit and debit cards as a payment options at the door, but also after only three months of processing, we were able to qualify him for a merchant cash advance!

This year’s Canadian Restaurant & Food Services Show at the Exhibition Place in Toronto was a great success for Synergy Merchant Services. We had such a great response at this show meeting a bunch of great people.

One client that we met, in particular, found that his interests were not to receive a merchant cash advance for his own business. In his line of work, he deals with so many different businesses that, at times, have made many attempts at getting approved for traditional types of business loans without success.

My client explained to me that as an accountant his responsibilities included completing all the forms and following the procedures set by the banks and underwriters. In many cases, he felt that his efforts were all for nothing because in the end many requests for funds would end up declined.

He was very frustrated about not having a source of funding for his higher risk clients.

Now that he has found Synergy Merchant Services he can offer his clients the resources they need most for building their businesses.

In the end this is a great situation for everyone involved. My client can now offer funding to a larger demographic of clientele and since he decided to turn his referral fee over to his clients, they are even saving money by attaining a merchant cash advance through him instead of going direct.

This client was in distress! Due to ongoing construction in the mall where his business was located, his slow season became almost catastrophic.

As my client made many attempts to attain working capital from the bank, private lenders and even some family members, he was still unable to find the money to keep his business operational.

My client needed the maximum we could advance him. Only $8,000.

Although not a lot of money compared to our average advance size, it was significant enough to keep his business alive until the construction had completed 6 months later.

With the new look and modern feel of the mall after the construction was finished, it proved to be well worth the wait for him. With much more foot traffic and higher end clientele today, the days when money was a problem are no more!