Step 1: Application & bank statement upload
You apply online and upload your last 6 months of business bank statements. This allows underwriters to verify your average monthly deposits and confirm the business is active in Canada.
Step 2: Underwriting & risk scoring
Unlike bank loans that evaluate credit, MCA underwriters analyze cash flow consistency. They check daily balances, deposit frequency, and look for negative balances or NSF items. A priority score is calculated to determine your funding bracket.
Step 3: Offer & factor rate agreement
If eligible, you receive an offer detailing the advance amount, the factor rate (e.g. 1.20), and the retrieval percentage (typically 10% to 15% of your daily deposits). Once you sign the purchase agreement, funds are wired directly to your business checking account.
Step 4: Automated repayment draws
Repayments begin automatically. The funding partner withdraws the agreed percentage from your daily card transactions or via ACH bank transfer. On days when your sales are high, you pay back more. On days when your sales are low, the repayment amount decreases proportionally, protecting your 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.