Earlier today, Statistics Canada reported that the nation’s inflation rate has dipped from 1.2 percent in December to 1.1 percent in January. This marks the fourth consecutive month that Canada’s inflation rate has fallen although the pace of the decrease has slowed since a major drop in October 2008.

“This is a softer than expected report, and suggests that not only is growing economic slack taking prices broadly lower, but also that the impact of the weaker Canadian dollar, which would otherwise push inflation higher, is not a formidable force,” says Charmaine Buskas, senior economics strategist at TD Securities, in The Globe and Mail last Friday.

On their website, CTV has reported that analysts believe that prices will likely continue to slide in the near future. “With the economic downturn gathering force and commodity prices still reeling, inflation is poised to move decisively lower in the months ahead,” says Douglas Porter, deputy chief economist at BMO Nesbitt Burns.

The top contributing factor to the lower rates, according to Statistics Canada, is the decreased price of gas. Drivers all over Canada are surely pleased with the fact that in January 2009, filling up at the pump was 23.5 percent cheaper than it was just one year earlier.

CTV also reports that the cost of purchasing and leasing passenger vehicles has fallen by 8.2 per cent, helping to push the index down even further.

The cost of food and shelter, however, has continued to rise. They note that food prices had increased 8.6 per cent during the 12-month period from January 2008 to January 2009 while shelter costs rose 3.3 percent in that time.

According to Statistics Canada, January’s inflation rate would have decreased by 0.2 percent had food and shelter not been taken into consideration. “Bakery and cereal products and fresh vegetables exerted upward pressure on the food index,” says their report.

Today’s struggling financial situation unfortunately continues to be a strain on the minds of business owners all over Canada. As always, Synergy Merchant Services remains committed to doing its part in assisting Canadian business owners with our merchant cash advance program which is designed to help businesses to grow.

Most merchants had lofty aspirations coming into 2009 to expand their businesses and reach new levels of success. For most business owners that we have had the pleasure of working with, these goals are still very firmly in place. However, with the economy in its current state of instability, many of these objectives will take longer than expected to accomplish.

For some industries in particular, the ability to maintain a previously anticipated level of forthcoming receivables through transactions made at the location of their stores is becoming more and more of a hardship. While Synergy remains Canada’s Merchant Funding Company by continuing to offer funding to Canadian businesses with no required collateral and no fixed payment schedules, the merchant cash advance program is still based heavily on a merchant’s daily credit and debit transactions.

With an inability to uphold an expected income amount based on the success of past months, it will, however, be difficult for some merchants to take advantage of this program. This is because the pay back of the cash advance is made specifically through future transactions at the point of sale.

In an ongoing effort to support the Canadian economy during this tough economic crisis, Synergy will continue with its temporary measure to hold off on applications from such industries as flooring, furniture and carpeting as well as vendors of pools and hot tubs.

As always, we look forward to a near future where such industries will find renewed success and greater financial achievements that will allow them to take advantage of our merchant cash advance program, giving them the ability to grow their businesses and have their dreams realized.

For any questions, please do not hesitate to call Synergy Merchant Services at 1-866-299-0101.

As you may already be aware, Synergy Merchant Services is gearing up for this year’s CRFA Show which takes place at the awesome Direct Energy Centre at Exhibition Place in Toronto on March 8th, 9th and 10th. This will be the second year in a row that Synergy will take part in Canada’s largest hospitality event and we couldn’t be more excited!

Last year, we enjoyed the opportunity to meet and speak with restaurant owners, food suppliers and chefs from all over the country. We had a great time introducing them to our unique merchant cash advance program and found that they overwhelmingly felt that our program would be most beneficial for business owners in their industry.

As long as people get hungry, the food business will flourish! However, in order to keep a successful restaurant running, owners are constantly in need of such requirements as new kitchen equipment, improved menu designs and payroll for staff.

We welcome you to visit Synergy Merchant Services at booth #1108. We would be more than happy to chat with you about our program and introduce you to a new method of attaining that necessary extra capital that may assist with the growth and success of your restaurant or food supply business.

Of course, there is so much more to do at the three-day long CRFA Show. This sensational annual event features free seminars, live food competitions, cocktail demos and much more!

Synergy Merchant Services would like you to join in on all the fun! Consider this your formal invitation to not only visit us at booth #1108 but take part in all of the great workshops and demonstrations as well as endless incredible food selections!

If you would like to attend the CRFA show on either March 8th, 9th or 10th, please feel free to contact our Vice President of Marketing, John Meloche at 1-866-299-0101 today.

I recently had to take my car into an auto body shop for repairs to my front bumper. Truth be told, it was the second time in a month I had to repair the bumper as some vandalism damage was followed up two weeks later by a fender bender!

I literally felt too embarrassed to go back to the same auto body shop right beside my home for the second repair so I decided to call a friend that I had made last year. Recommended to me by another mutual friend, this individual – a trained mechanic with several years of experience – had just opened his own shop in Ajax, Ontario.

When I went to see him, I was more than happy to find out that the replacement of my bumper would only take 24 hours and would cost me less than what the previous repair shop had charged me. Why I didn’t go to him the first time around is beyond me.

When picking up my car the following day, I decided to ask my friend about his new shop. I mentioned to him that, at first, it was hard to find because he hadn’t any signs up yet. There were, of course, the installed car lifts along with all of the necessary tools and equipment for his employees to do their jobs, but I could tell the garage was far from being completed.

He mentioned that signage was a priority in addition to constructing a car wash bay – even though my car was washed beautifully in the middle of the garage. As well, he wanted to ensure that payroll would never be a problem especially since he planned on expanding his staff. He mentioned that additional tools, paints and supplies would also be constantly required.

Attaining all of these necessities would come slowly, he insisted, since he didn’t have the working capital to afford all of these requirements right away. I was actually disappointed in myself for not having mentioned Synergy Merchant Services to him earlier in the conversation. The program sounded fantastic to him. He was wide-eyed and eager as he asked questions about the nature of the merchant cash advance program that Synergy offered.

His business had all the makings of the perfectly eligible candidate. Not the least of which was the fact that he was a young owner of a new business who banks would not look favorably upon when thinking of lending money. He assured me that the auto repair business was fairly steady all throughout the year and it was not uncommon for him to easily pull in amounts in the five-figure range monthly. Some jobs, depending on the extent of the damage to the vehicle, were several thousand dollar jobs in and of themselves.

I joked that winter must be great for his business considering the assumed increase in car accidents. While insisting that as long as no one is ever hurt, he would always be happy to fix a damaged car, he also mentioned that during the summer months, detailing and other maintenance help to keep his business very strong.

Everything seemed to be set in motion for him to begin the process of getting his free no-obligation quote from Synergy. That is, until I went to pay for my car repair. Pulling out my Visa card, his receptionist had to reluctantly inform me that they did not yet accept credit and debit cards.

This, of course, presented two problems. One, I was going to have to drive to the nearest ATM to take out more cash than I wanted to withdraw from my account! Two, my friend – excited about this opportunity to help improve his business – would not be eligible to take advantage of Synergy’s cash advance program.

Well, not yet anyways. He informed me that he had just recently secured a point-of-sale processor and would begin accepting credit and debit cards in his shop by the end of the month. He insisted, however, that he had documents to prove the success of his business over the past year. I believed him. I could see first hand that his shop was successful and that his work was excellent.

He met all the criteria necessary to be quoted – he’s a Canadian business owner, he has been in business for more than a year and he easily makes more than $5000 monthly – all except one. I assured him that six months down the road, when he has processed credit and debit cards for at least that amount of time, Synergy Merchant Services would be able to quote him for a cash advance. He was relieved.

This is the reality that faces many new business owners in Canada. Many of them have already encountered difficulties and hassles in dealing with banks when simply searching for a way to help grow their businesses. For many of them, the solution is as simple as deciding to begin accepting Visa, MasterCard and Interac through a merchant P.O.S. processor. A short six months of doing so will allow these owners to be quoted for a cash advance, putting them that much closer to getting the extra working capital they need to take their businesses to the next level of success.

Contacting the two largest processors in Canada, Moneris and Global Payments, would be an excellent start. Of course, any of our approved processors including TD Merchants, Chase Paymentech, P.O.S. West, Collective P.O.S., ID Tel, Monex, ATB Financial, Versapay and MSI Canada would allow an owner to get a cash advance without having to switch processors! And even if a business owner is not with an approved processor, a free no-obligation quote from Synergy may still be attained.

So, as my friend – an excellent mechanic with a great auto body shop – now knows, getting a cash advance is just a processor away!

With everyone feeling the brunt of today’s struggling financial climate, many Canadians are thinking of ways to both make more and save more money. Times are especially tough for small business owners who continue to work tirelessly to keep their businesses competitive in today’s market place.

Unfortunately, when small business owners are looking for money to help their businesses with payroll, inventory, advertising and any other necessities to keep running, they are often met with opposition. Apparently, it’s no secret to a small business owner that banks are and have, for a long time, been very difficult to work with.

In an article entitled “Where To Go When The Banks Says (sic) No” from the September 2007 issue of Enterprise Magazine, author Bruce Smith insists that small businesses tend to not fit into the “strict lending criteria” of major banks. In addition, Smith notes that bank managers rarely sympathize with small business owners simply because most of them have never been in business for themselves. As a result, they are unable to relate to the pressures associated with owning a business like processing orders in a timely manner or making payroll.

Canada’s major banks also tend to “cherry pick” who they give loans to, according to Georgian Bancorp Inc. Chairman, Sinclair Stevens. In his article “Big Banks Have Broken Faith With Canadians” from the Friday, May 29, 1998 issue of The Toronto Star, Stevens reveals that Canadian bankers work to maintain a “mature system” where most of the loans provided are “large and to a favourite few”. It is “sheer hell” says Stevens, for small businesses to deal with Canada’s eight major banks.

In “Lending Competition Crucial To Small Business”, also from The Toronto Star, Catherine Swift of the CFIB (Canadian Federation of Independent Business) provides some shocking statistics. She notes that there was significant growth in the number of small businesses that were refused financial assistance from banks in the 1980s to the 1990s. 20% of small businesses reported problems getting financing in the 80s. This grew to 40% in the early 90s. This rate of refusal has only dipped to approximately 30% in recent years.

Such statistics are especially startling, says Swift, because “small businesses continue to be the most robust job creators in our economy – and this trend will likely accelerate in the future”. Nevertheless, funding for small businesses has flatlined at $17 billion yearly over the past decade, while loans to larger businesses have increased from $60 billion to $84 billion during that time.

Smith contends that such trends make alternative lending options a much more viable choice than the traditional bank loan for small business owners. This is especially true for owners of new businesses who have either poor credit or lack collateral. He lists “factoring” as a method that can help a business owner who, for example, is unable to pay employees on payday. His example of an owner getting an advance of 85% of the money owed to him in order to pay his staff speaks to a better method for small businesses to stay in business, remain competitive and become more successful.

While Stevens notes that major banks find it a “nuisance to bother” with small loans, it should not be an annoyance for small business owners to attain working capital. Cash advances seem to be the most worthwhile option for small businesses. While the merchant cash advance industry in Canada is relatively new, the need for merchant cash advances has long been in existence. As the industry grows, hopefully the “nuisance” of dealing with banks will lessen. Small business owners need not be “bothered” again.

Synergy Merchants Services is eagerly counting down the days to this year’s CRFA Show in Toronto which takes place March 8th, 9th and 10th at the incredible Direct Energy Centre at Exhibition Place. Our second year in a row at this event, Synergy had amazing success at last year’s show meeting numerous restaurant owners and food suppliers who took great interest in our uniquely flavoured cash advance program.

Of course, with today’s struggling economy, many business owners and consumers alike are concerned. However, a recent press release from the CRFA reported that restaurant operators turned out in droves at the recent BC Foodservice Expo at BC Place in Vancouver which took place January 25th and 26th.

In fact, according to CRFA’s Ron Steingold, the BC Show enjoyed a 22% increase in attendance, to over 5,700 visitors to the 2008 event!

This year’s CRFA Show in Toronto is set to be a fantastic event! Hot on the heels of the show in BC, Toronto’s event is expected to be even bigger and better than last year’s show. This year, you will be able to experience seminars and cooking demonstrations by some of Canada’s most illustrious chefs like Iron Chef America’s Kevin Brauch, Surreal Gourmet’s Brian Blumer and Everyday Exotic’s restaurateur-slash-recording artist, Roger Mooking! In addition, you may attend a number of workshops including “How Safe Is Your Food?”, “Food Cost Fitness” and “Menu Mapping”.

BUT be sure to come by and visit Synergy Merchant Services at booth #1108. We would be more than happy to chat with you about our program and introduce you to a new method of attaining that necessary extra capital to assist with the growth and success of your restaurant or food supply business. Don’t forget to bring both your business cards…and your appetite!

If you would like to attend the CRFA Show in Toronto, feel free to contact Ron Steingold at 416-649-4223.

If you would like to take part in the ApEx show in Halifax that takes place April 5th and 6th, please call Ellen Scanlan at 902-425-0061 ext. 102.

Synergy Merchant Services has long been proud to be the only merchant funding company in Canada to have direct relationships with Canada’s largest point-of-sale processors. What this means is that in most cases, merchants are not required to switch to another processor in order to participate in our cash advance program.

Synergy is glowing with pride once again, as we announce the addition of yet another one of Canada’s largest P.O.S. processors to the team. TD Merchants is now an approved processor with Synergy Merchant Services!

Numerous businesses that accept credit and debit cards at their locations across Canada have been enjoying the benefits of having TD Merchants as their processor for many years. TD’s dependable and swift service makes them both a pleasure to work with and an asset to our growing list of business partners.

TD Merchants now joins the list of Synergy’s approved processors that include Moneris, Global Payments, Chase Paymentech, P.O.S. West, Collective P.O.S., ID Tel, Monex, ATB Financial, Versapay and MSI Canada.

The solution to helping you grow your business is here. If you’re a Canadian business owner looking for extra capital and you have TD Merchants as your point-of-sale processor, be sure to contact Synergy Merchant Services.

Synergy Merchant Services’ main objective has always been to assist Canadian business owners in growing their respective businesses through our merchant cash advance program. Whether it is expansion, renovations, marketing, purchasing inventory and equipment or any other necessity to increase business, our program is designed to provide the extra working capital needed to increase a company’s profits.

Unfortunately, due to circumstances beyond the control of all Canadians, we are beset by a tough economic predicament at the present time. As a result, many business owners are feeling the strain of a financial crisis that may be impacting the success of their sales and services. Ironically, this has made it somewhat less convenient for certain industries to take advantage of cash advance programs.

With a program that is based heavily on credit and debit transactions, such as the one offered by Synergy, it is necessary for companies to maintain a certain number of transactions and processing amounts on a monthly basis in order to repay their cash advances. Of course, there is still no fixed payment schedule given to a Synergy client.

However, businesses who are unable to process certain required amounts, as outlined in the criteria to be approved for an advance, may not find themselves eligible to participate.

In an effort to support particular industries that are facing difficulties in today’s tough financial climate, Synergy is embarking on a temporary measure. Due to the current struggling economy, we are, until further notice, not accepting applications from such as industries as furniture and flooring.

We look forward to a near future where businesses in these industries and all others in Canada find new financial triumphs and an enhanced ability to be approved for extra working capital through our fantastic cash advance program.

For any questions, please do not hesitate to call Synergy Merchant Services at 1-866-299-0101.

Today’s issue of The Toronto Sun features an article in the Money section entitled “Late Payments Grow”. Alarmingly, it appears as if more and more Canadians are finding it increasingly difficult to make timely payments to their creditors during these strenuous economic times.

According to the article, Deloitte consultants report that “Canadian credit card issuers saw a sudden upward jolt in delinquencies late last year and they are getting tougher to avoid writedowns like those that have afflicted the U.S. financial system”.

It goes on to note that while credit card companies are bracing for higher credit losses in the coming months, a recent study shows that “Canadian consumers (are) increasing their debt-to-disposable-income ratios to more than 130%, a rate currently higher than that of the U.S.”.

The increase in the frequency and amount of late fees is an inevitable result of this pattern of spending in Canada. Needless to day, business owners in Canada may be reluctant to take the traditional route of getting a bank loan if increased debt and a poorer credit scores become the mostly likely outcomes.

Late fees are non-existent within the Synergy Merchant Services cash advance program. A Canadian business owner seeking extra capital to grow his or her business will receive the benefit of knowing that the repayments are based solely on a fixed percentage of the credit and debit transactions made at the location of their business. As sales are processed, payments are made. If sales are slow, the payments are smaller. The program works with each business based on their specific needs and transaction successes. Since there is no fixed payment schedule, there is no way to be late with a payment!

In addition, receiving a merchant cash advance from Synergy Merchant Services does not appear on a business owner’s credit bureau.

So in today’s tough financial climate, rest assured that Synergy is here to provide the same great service we’ve been known for, without the hassle of increased credit debt or late fees.

Back on November 6, 2008, this blog reported that Toronto’s York University had cancelled all classes for approximately 50,000 students due to a strike involving teaching assistants and contract faculty members. Today, nearly three months later, York students are finally back in class.

Emotions are high at York University today as students are returning to school after a layoff from class the equivalent of a summer vacation. Getting assimilated back into the mode of academic study will be a difficult task for many.

“I feel it’s bittersweet”, says Environmental Studies student, Mark Duke-Hogan who shared this thoughts with Synergy as he returned to school this morning. “Being used to not going to school for so long made waking up today a bit tough. It’s like the first day of school all over again. I am motivated, however, as my grades have been good.
But maintaining the momentum I had to allocating my time towards my schoolwork will be tough”.

“I’m worried about my assignments” says first-year Theatre student, Joella Crichton, “I’m nervous about how fast I’m going to have to get them in. There is only two weeks left for what is considered the first semester”.

Furthermore, the potential for yet another near future strike at York U. appears imminent as this strike was ended by the Ontario government who issued a back-to-work legislation last week. As a result, no new contract was settled and it is now to be resolved through arbitration. York University’s president Dr. Mamdouh Shoukri admits the relationship between the university and CUPE Local 3903 is still in need of major repair. Not to mention the damaged rapport between York and its students.

“We have a lot of work to do in repairing some of the relationships in the York community” says Shoukri in a statement from York’s website, “We will begin now to rebuild bridges. We are committed to working with the community to resolve these problems. There are no winners in this situation”.

Even with classes starting up again, York’s students have certainly been placed in a difficult situation. “Although I’m happy to get back to class” explains Crichton, “I’m disappointed that the school year will have to go further into the summer which will affect how much money I’ll be able to make during the summer to pay for school next year”.

York’s fall curriculum is scheduled to end February 19th while the winter term begins March 4th and ends on May 21st. The summer session is set to start June 8th.

“I don’t even want to talk about the strike anymore”, says Duke-Hogan with a laugh, “I just want to get back to work”.