Merchant Cash Advance in Canada

A merchant cash advance gives your business a lump sum of capital today, repaid automatically as a small percentage of your future sales. No collateral, no fixed monthly payment, and approval based on how your business actually performs rather than what a credit bureau says about it.

Magical Business provides merchant cash advances of up to $300,000 to businesses registered and operating in Ontario, Canada’s largest business market. We are a subsidiary of Magical Credit Inc., a Canadian lender operating since 2014, so you deal with the funder directly rather than a broker shopping your file.

Most applicants receive a decision within 24 hours. Apply now or use our repayment calculator to see real numbers first.

What is a merchant cash advance?

A merchant cash advance (MCA) is not a loan. You are selling a fixed amount of your future revenue at a discount in exchange for capital now. Three numbers define every advance:

The advance: the lump sum you receive, up to $300,000 depending on your business qualifications and revenue.
The factor rate: the multiplier that sets your total repayment. A $50,000 advance at a 1.2 factor rate means you repay $60,000 in total. That number is fixed the day you sign and never changes, no matter how long repayment takes. Your exact rate depends on underwriting, and you see it in writing before you commit.
The holdback: the fixed percentage of your daily or weekly sales that goes toward repayment. Strong sales week, you repay faster. Slow week, you pay less. The advance flexes with your business.

Because repayment tracks revenue, an MCA has no fixed term or payoff date. Repayment simply runs until the agreed total is reached.

How it works

Apply online in minutes. Basic business details and recent sales history. No business plan, no collateral appraisal. Start here.
Get a decision within 24 hours. We look at your real revenue and cash flow, not just your credit score.
Receive your funds and carry on. Money lands in your business account, and repayment happens automatically as a percentage of your sales. Nothing to remember, no payment dates to hit.

More detail on our How It Works page.

What does a merchant cash advance cost?

Straight answer: more than a bank loan, less than losing the opportunity or the season you need it for. If you take a $40,000 advance at a 1.25 factor rate, you repay $50,000. That $10,000 is the full cost, fixed on day one. There is no compounding interest, and the cost does not grow if repayment takes longer than expected.

What to check in any MCA offer, from us or anyone else:

The factor rate, and the total dollar repayment it produces
The holdback percentage and how it is collected
Any origination or administration fees added on top
How early repayment is treated

Run your own numbers with our merchant cash advance calculator.

Who qualifies?

MCA approval is built on sales performance, which is why businesses that banks decline get approved every day. What we look for:

A business registered and operating in Ontario
An active Canadian business bank account
Consistent sales, often card or merchant sales
Revenue and cash flow that support the advance; we consider businesses at various stages

Bad credit is not a dealbreaker; consistent revenue matters more. Full details on Who Qualifies.

What can you use it for?

Anything your business needs: inventory, equipment, working capital, renovations, expansion. No spending plan required and no restrictions on use. The common thread among the businesses we fund: revenue-generating spending where waiting weeks for a bank costs more than the advance does. Inventory buys ahead of peak season, equipment repairs that cannot wait, bridging a slow month, staffing up for a contract.

Merchant cash advance vs a business loan

A bank term loan is cheaper if you can get it and can wait for it. An MCA exists for everything else: decisions in hours rather than weeks, no collateral, no fixed payment schedule, and qualification based on revenue rather than credit history. Many businesses use both: bank financing for long-term investments, advances for speed and flexibility.

Full comparison: Merchant Cash Advance vs Business Loan. Comparing providers instead? See our honest rundown of the best merchant cash advance companies in Canada.

Where we fund

Magical Business funds businesses registered and operating in Ontario: Toronto, Ottawa, Mississauga, Hamilton, London, Windsor and every community in between. Ontario is home to the largest small-business economy in Canada, and it is where our underwriting, our team and our experience are focused. If your business operates elsewhere in Canada, contact us and we will point you in the right direction.

Why Magical Business

A lender, not a broker. Your application is decided here, backed by Magical Credit Inc., a Canadian company since 2014. Your file is not auctioned to third parties.
Transparent numbers. Factor rate, holdback and total repayment in writing before you sign. No surprises buried in the agreement.
Built around your sales. Repayment is automatic and proportional. When sales slow down, your payment shrinks with them.
Fast, human decisions. Most applicants hear back within 24 hours, and you can reach a real person at 1-855-639-6888 whenever you have questions.

FAQ

Is a merchant cash advance a loan? No. An MCA is an advance on your future sales: you receive a lump sum and repay it as a percentage of your daily or weekly sales. No fixed installments, no collateral.

How much can I get? Up to $300,000, depending on your business qualifications and revenue. The exact amount is determined from your application.

How fast will I get a decision? Most applicants receive a decision within 24 hours.

Can I get an MCA with bad credit? Usually, yes. We focus on your revenue and cash flow, not just your credit score. See Who Qualifies.

Do I need to accept card payments to qualify? Consistent sales matter more than the payment method; card or merchant sales are common but not the whole picture. The application takes minutes and will give you a definitive answer.

What can I spend it on? Inventory, equipment, working capital, renovations, expansion or other business needs. There are no restrictions.

Ready to see your numbers? Apply in minutes, or call 1-855-639-6888.