Why Look for Alternatives?
Traditional Canadian bank loans require high credit scores, years of operational history, and extensive collateral (like real estate or equipment). When banks say no, or when you need funding faster, several alternative financing structures are available.
Alternative 1: Government Grants & Tax Credits
Government programs like SR&ED or IRAP offer non-dilutive, equity-free funding. While the application process is rigorous and takes 3 to 6 months, it does not require repayment or equity dilution.
Alternative 2: Merchant Cash Advances (MCA)
An MCA purchases a percentage of your future card sales or bank deposits. Approvals are based on daily deposit volume and cash flow stability, with funds wired in 24–72 hours. No collateral is required.
Alternative 3: Factoring / Invoice Financing
If your business invoices other companies on Net-30 or Net-60 terms, you can sell those outstanding invoices to a factoring company at a discount to receive immediate cash flow.
Funding Intelligence Analyst
Reviewed by the Funding Intelligence Team. We verify all sources, regulatory guidelines, and banking parameters to maintain the highest standard of accuracy.