Unsecured line of credit makes small business lending more flexible

UCW News Team  |  July 20, 2016

Stack of credit cards

Merchant Advance Capital, a fintech company based in Vancouver, BC, has just launched Give Yourself Credit, a new unsecured line of credit for small business owners across Canada. This service will provide small business owners with more flexibility as they will be able to get access to financing at a lower cost without approaching a traditional lender.

Merchant Advance Capital CEO David Gens said that the company wanted to give more control to small business owners at a lower cost. He believes this is something that many small businesses in Canada want when it comes to financing.

In Canada, unsecured lines of credit are available from credit unions and banks. Here, the lending institutions take into account business assets and credit scores before extending the credit. However, Merchant Advance Capital offers unsecured credit based on performance rather than just assets and credit scores.

Gens believes that the unsecured line of credit will prove to be a game changer since small businesses will be more empowered knowing they have access to financing if they encounter unforeseen expenses.

Small business owners will be able to apply for a line of credit based on their business performance, and the approval is given in advance. The advance approval ensures that small business can make major purchases and business decisions without feeling hindered. Moreover, businesses pay interest only when they use the money. The interest rate is usually lower than business loans and merchant advances.

Merchant Advance Capital allows borrowers to make a minimum weekly payment or overpay their loans at any point to close it. This way, businesses are not compelled to pay interest on outstanding balances for extended periods.

With alternative lending growing and expanding in Canada, the time is ripe for entrepreneurs to set up their small ventures. They will be able to get access to financing when they need it thanks to the burgeoning alternative lending market in the country. However, it is important for small business owners to make prudent decisions, and this is where a UCW MBA degree can be advantageous.

Financial Management and Managerial Accounting are part of the UCW MBA program. MBA students learn cost reduction strategies, financial reporting guidelines, the implications of change in investment, strategies for evaluating and minimizing risks, and meeting the expectations of shareholders and stakeholders. The program ensures entrepreneurs have the financial competence needed to run their ventures successfully.

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