Even though small businesses are considered the backbone of the American economy, accounting for 48% of all jobs in the country, they still face an uphill battle when it comes to securing traditional funding from banks and other financial institutions. The COVID-19 pandemic also created a great deal of uncertainty for small businesses, many of which have had to pivot and reevaluate their entire business model to stay open and continue to grow.

By utilizing effective digital marketing ideas for small business, business owners in any industry can navigate these challenges more easily by reaching new customers, building relationships, and ultimately increasing sales.

As a small business owner, you know that marketing is essential to your success. But what if you don’t have the capital to invest in marketing your business to attract new customers or you can't get the funding you need from the SBA or a bank? That’s where alternative funding options like merchant cash advances come in. With a merchant cash advance, you can quickly access the money you need to invest in marketing and grow your business.

With a streamlined online application, shorter turnaround, and more flexible approval requirements, merchant cash advances are often ideal for financing your marketing efforts, especially if you need funding quickly or don't meet the strict approval requirements of other lenders. Because MCAs are repaid with a percentage of your future credit card sales, they can be an excellent option for businesses that need money for marketing but don’t have the collateral or the time to qualify for a traditional bank loan.

In this post, we will discuss some of the benefits of using a merchant cash advance and how this type of funding can be used to jumpstart digital marketing for small businesses:

1. Creating a dedicated marketing budget
2. Investing in paid online advertising
3. Hiring a social media manager
4. Updating or launching a website
5. Investing in content marketing
6. Managing your online reputation
7. Email marketing

Having a marketing budget is essential for any business that wants to be successful because it allows you to track your spending and ensure that you’re getting the most bang for your marketing buck.

The first step to developing a marketing budget is to set goals. What are you trying to achieve with your marketing efforts? Do you want to increase brand awareness? Drive more traffic to your website? Generate more leads? Convert more customers? Once you know your goals, you can start to allocate your marketing budget accordingly. An MCA will provide you with the capital needed to create a marketing budget and implement your plans without putting an additional strain on your bottom line.

Paid online advertising such as search engine ads or social media ads will help you reach potential customers who are actively searching for products or services like yours. By increasing awareness of your brand, paid ads are an effective way to attract people who have never heard of your business before, which may lead to increased sales. Paid advertising also allows you to track your results and ROI more effectively than other marketing channels, which can help you to further refine your targeting and ensure that your campaigns are as effective as possible.

Merchant cash advance funding gives you an opportunity to try out different advertising strategies and see which ones work best for your business. This can help you save money in the long run by only using the most effective methods. If you only advertise online sporadically, your results may be inconsistent, but an MCA will help ensure that you’re generating a steady stream of traffic and leads.

Hiring a social media manager can be one of the best investments you make for your business, especially if you're just learning how to market your business online. Here are 4 reasons why:

• Time management: If you’re like most business owners, you don’t have a lot of extra time to spend on managing your social media profiles. A social media manager can take care of all the posting and engagement for you so you can focus on running your business.
• Grow your reach: Social media managers know how to reach new audiences and grow your following. They are also able to create targeted campaigns that will help you reach your specific goals, such as increasing brand awareness, generating leads, promoting new products and/or services, encouraging more purchases, and more.
• Create engaging content: A social media manager can help you create social media content that is engaging and relevant to your audience. They can also help you repurpose existing content such as blog posts or videos so that it’s more effective on social media.
• Stay up-to-date on the latest trends: Social media managers will keep up with the latest trends in social media and digital marketing for small businesses. They’ll be able to adapt your strategies so that you’re always ahead of the curve.

An MCA can provide the funds you need to hire a social media manager who can determine which platforms are most likely to result in conversions, devote their time to creating social media content that resonates with your audience, and ultimately increase your revenue.

Having a website is one of the most important tools in your marketing arsenal. It’s how you get prospective customers to look at what you offer, and it’s also how you keep them coming back for more. Not only does a website give your business credibility, but it also helps with search engine optimization (SEO), which makes it easier for potential customers to find you online.

Merchant cash advances can provide the funds you need to build a new site or redesign and optimize your existing website, whether that means making the changes on your own, hiring a freelancer, or contracting a digital marketing agency.

There are many factors that go into SEO, but one of the most important is website content. By creating keyword-rich content such as blog posts and resource guides, you can improve your site’s ranking and visibility and make it easier for potential customers to find you online. In addition, fresh, original content helps to keep visitors engaged, which can lead to more sales and conversions for your business.

Merchant cash advances can provide the funds you need to hire a content manager or a freelance writer to help you develop a strong content strategy, create high-quality content for your website, measure your results, and make necessary adjustments along the way.

It’s no secret that online reviews and customer feedback can make or break a business. Creating trust is one of the most important aspects of running a successful business, but it’s not just something that customers need to feel safe or secure-it’s also how they will understand whether or not they should continue doing business with you.

One way to manage your online reputation is to monitor online reviews and customer feedback on platforms like Trustpilot or Google My Business. These platforms allow customers to leave reviews and rate their experiences with your business, which can be extremely valuable for potential new customers who are researching your company. In addition, online review sites often rank higher on search engine results pages, so having a strong presence on these platforms can help you attract even more attention from prospective customers.

If you want to make sure that you’re getting the best possible ROI out of your customer relationships, using a merchant cash advance to manage your reputation might be the best option. A merchant cash advance can help you keep your customers happy by ensuring that they’re getting the products and services they need in a timely fashion, as well as by providing you with the funds you need to resolve any issues that may arise.

Email marketing allows you to stay in touch with your customers on a regular basis, keeps them updated on what’s going on with your business, and gives them special offers and discounts that they can’t find anywhere else.

There are a number of software programs that can automate email marketing and make it easier for you to manage your email list, track your results, and more. Merchant cash advances can provide the funding you need to invest in software programs that will help you reach your target audience while still having funds for other business expenses.

Although digital marketing for small businesses is an effective way to reach new customers and grow your business, it can also be a costly investment. Here are some of the benefits of using alternative funding to market your business online:

1. You can get the funding you need quickly, which can be crucial when you are facing time-sensitive needs.
2. The repayment process is flexible, which can be helpful if your sales fluctuate.
3. You can use the funds for a variety of online marketing initiatives, including building a website, paid search engine and social media ads, content marketing, email marketing, and more.
4. Merchant cash advances have more flexible approval requirements, making them ideal for businesses with low credit or no collateral.
5. There are typically no restrictions on how you use the funds from a merchant cash advance.

Whether you decide to invest in a digital marketing agency or take matters into your own hands, with the right planning and preparation, you can use a merchant cash advance to successfully market your small business.

The digital world has changed the way people spend money, and it’s changed the way businesses are able to market themselves. A merchant cash advance can help you invest in new digital marketing ideas for small business so you can take advantage of new opportunities to grow.

Sometimes, small businesses need funding to help fuel new marketing strategies. Traditional lenders like the SBA and banks have the lowest rates and longest terms, but they are the most difficult and time-consuming to secure. Additionally, due to their strict requirements, many applicants are rejected. Alternative lenders have more flexible requirements, allowing them to approve more small businesses faster, with funds deposited in as little as 24 hours.

Several kinds of small business funding are available from alternative lenders like Bluerock Options®, including merchant cash advances, online invoice factoring, alternative business credit, collateral business loans, and term loans, with funding from as low as $3,000 and up to $500,000 with no restrictions on how funds are used.

There are many small business funding options available to businesses in Canada, including government-funded programs, bank loans, and alternative lending. Each type of funding has unique application requirements, qualification criteria, and ideal uses.

Canada Small Business Financing Program loans are one of the most preferred forms of small business funding in Canada, often with the lowest fees and best terms, but these loans are not always the best option for small business funding in Canada.

With so many options available, understanding which type of funding is best for your business can be challenging, especially if you're busy focusing on operating your business and adjusting to a constantly changing business landscape.

In this post, we'll compare CSBF loans to alternative lenders in Canada to help you determine which source of funding suits your needs, including funding amounts, terms, and uses, rates and fees, and who should apply.

Let's jump in.

Canada Small Business Financing Program loans are not actually provided by the federal government. These loans are provided by private lenders, including most commercial banks, but are guaranteed by the federal government up to 85%, similar to Small Business Administration loans in the USA.

When you apply for a Canada Small Business Financing Program loan, you'll apply for your funding directly through a partnering financial institution, such as RBC, BMO, or Scotiabank. These partnering commercial lenders will disburse the funds and are solely responsible for approving your loan application. If your application is approved, the financial institution will deposit the funds and register the loan with Innovation, Science, and Economic Development Canada.

Up to $1M in funding is available through the Canada Small Business Financing Program, but funds can only be used for specific purposes, including:

• Purchasing or improving land or buildings used for commercial purposes, typically with 15 year terms
• Purchasing or improving new or used equipment, typically with 10 year terms
• Purchasing new or existing leasehold improvements, such as renovations to a leased property by a tenant, typically with 7 year terms

Past purchases made within the last 6 months are eligible for financing, but no more than $350,000 can be used for purchasing leasehold agreements, improving leased property, or purchasing or improving new or used equipment.

Funds cannot be used for goodwill, working capital, inventory, franchise fees, or research and development.

Canada Small Business Financing Program loans are available to most established small businesses and startups with gross annual revenues of $10M or less, including corporations, sole proprietors, partnerships, and co-operatives. Farming businesses are not eligible.

Applicants must have a strong financial and credit history and be prepared to submit a detailed loan proposal that outlines how much money they are seeking, how they intend to use the loan, and how they plan to pay it back. Collateral or a personal guarantee may be required, potentially up to 25% of the loan amount.

Rates and fees for loans approved under the Canada Small Business Financing Program are determined by the partnering financial institution.

Multiple rate structures are available, including fixed and floating interest rates depending on the loan amount, as well as your business's creditworthiness and risk assessment. The Canada Small Business Financing Program stipulates maximum interest rates lenders can charge:

• Maximum fixed interest rate: The lender's single family residential mortgage rate + 3%
• Maximum floating interest rate: Prime lending rate + 3%

All Canada Small Business Financing Program loans are also subject to a registration fee equalling 2% of the loan amount. The borrower must pay this fee to the lender, but it can be financed as part of the loan. Other fees, such as documentation preparation and application fees, may also apply depending on the lender

"Alternative lending" is an umbrella term that describes any lending that occurs outside of a traditional financial institution like a bank or a credit union.

These lenders emerged after the 2008 recession in response to a greater need for accessible small business funding. Using new technologies to support the underwriting process, alternative lenders can approve more applications and provide funding to business owners who would not usually be approved by traditional lenders.

There are multiple types of alternative lenders, including direct online lenders like Bluerock Options®, private lenders, marketplace lenders, and crowdfunding. Direct online lenders offer financing directly to small business owners using a fast and easy online application, and with simpler and more flexible underwriting requirements, loans from these lenders can be approved in as little as one business day.

Direct online lenders offer financing options similar to traditional lenders, including collateral real estate loans, lines of credit, and alternative small business loans, but these lenders typically specialize in non-loan forms of financing such as:

• Merchant cash advances: A non-loan form of financing known as an asset purchase or a purchase of future receivables. With a merchant cash advance, a lender will purchase a portion of your business's future revenue in exchange for cash up front. You'll receive an advance of working capital when you need it, and your lender will receive a portion of your daily or weekly debit and credit card sales until the advance has been repaid. Learn more about merchant cash advances.
• Invoice factoring: A non-loan form of financing known as accounts receivable financing. Instead of receiving a lump sum that will be repaid over a certain term, a business will sell their unpaid invoices to a lender, called a "factor". The factor owns the invoices and will advance the money your clients already owe you, typically between 70-90% of the invoice's value, with the remainder of the invoice's value paid out to you once your client pays (minus any lender fees). Learn more about invoice factoring.

Alternative lenders also typically offer loans for smaller amounts and shorter terms than Canada Small Business Financing Program loans and other traditional small business funding options in Canada.

Alternative lenders offer funding up to $500,000, typically with shorter term lengths around 1-3 years.

There are no restrictions on how funds are used, but alternative funding is typically best used to support growth initiatives that will increase revenue, such as:

• Investing in marketing and advertising
• Purchasing inventory, fixtures, technology, or raw materials
• Hiring new staff
• Remodeling your space

Alternative funding is also ideal for use as working capital, as well as responding to unplanned expenses.

By evaluating the future potential of a business instead of focusing entirely on credit score and financial history, alternative lenders in Canada make funding available to more businesses, including those who would not typically be approved by traditional lenders, such as:

• Business with strong financials that simply don't meet the stringent requirements of the SBA or a bank
• Businesses looking for smaller loans
• Businesses in "high risk" industries
• Women-owned, veteran-owned, or minority-owned businesses
• Businesses with low credit

Personal and business credit and financial histories will still be considered when evaluating your loan application, but they will be factored in alongside other criteria like your daily sales and business reputation. Collateral is typically not required to secure alternative funding.

Fees for alternative lending options are often based on a factor rate instead of a traditional interest rate. Unlike interest rates, which are percentage rates that compound as you pay off your loan, factor rates are simple decimal figures that show how much "extra" you owe on the original amount of the loan. For example, if you borrow $10,000 at a factor rate of 1.3, you'll owe $13,000. Learn more about factor rates vs. interest rates.

Because alternative funding has shorter terms and is typically easier to qualify for, rates are often higher than Canada Small Business Financing Program loans and other forms of traditional funding. However, it's a common misconception that alternative funding always has higher rates and fees-ultimately, your rates and fees will depend on your business's risk assessment and how quickly you are able to repay the advance. The stronger your business's financial history, the lower your rate should be.

The Canada Small Business Financing Program typically offers the lowest rates and most favorable loan terms for small business funding in Canada, but these loans also have the strictest approval requirements and many deserving small businesses are excluded.

With flexible approval requirements, alternative lenders in Canada make more funding available to more small businesses. Multiple types of funding are available depending on your business's goals and needs, including merchant cash advances, invoice factoring, alternative business loans, lines of credit, and more. No collateral is required and funds can be deposited in as little as one business day, making alternative lenders an ideal option for businesses that need smaller loan amounts, can't offer collateral, have lower credit scores, or need fast funding.

Commercial lenders assess your business’s risk and creditworthiness primarily based on your personal and-if you have one-business credit scores. With this in mind, you might think that you always need to have great credit to secure a business loan. Good news-there is no universal minimum credit score requirement for a small business loan, which means you don't necessarily need to have a stellar credit rating in order to get the funding you need.

Ultimately, how good your credit needs to be depends on the type of funding you're seeking and the lender you're working with. Government-funded and traditional lenders typically require high credit scores, while alternative lenders focus more on the health and potential of your business, with less emphasis on credit score.

To help you understand how your credit score can impact the business funding options available to businesses in Canada, we took a deep dive into credit scores in our latest article for Smarter Loans, an online lending resource in Canada.

Read the full article to learn more about:

• The difference between personal credit and business credit
• Why credit scores matter
• The difference between traditional lenders and alternative lenders
• Small business loan options for businesses with low credit scores

Small businesses in Canada have a number of funding options to choose from, including government-funded programs like the Canada Small Business Financing Program, bank loans, and alternative funding from direct online lenders such as merchant cash advances.

Each type of funding has different application requirements and approval criteria, and is best suited for a different use. If you’re focused on operating and growing your business, it can be difficult to understand what type of funding is best for your needs, and even harder to figure out what documents you need to compile to usbmit your application.

To help you determine what funding is right for you, we compared Canada Small Business Financing Loans to merchant cash advances in our latest article for Smarter Loans, an online lending resource in Canada.

Read the full article to learn more about:

• The Canada Small Business Financing Loan program, including what are Canada Small Business Financing Loans, funding amounts and terms, who is eligible, rates, and who should apply.
• What merchant cash advances are, maximum funding amounts, eligibility requirements, fees, and who should apply.
• Which funding option is best for your business

Medical practices of all sizes and in all areas of specialty can benefit from small business loans and working capital funding, whether you’re looking to open a private practice, expand your current office, or simply supplement your cash flow.

There are a number of medical practice loan and funding options available to doctors, dentists, and other medical professionals in Canada, including long- and short-term funding, as well as secured and unsecured business loans for doctors. To help physicians and dcotors in all specialties find the funding they need, we shared our expertise on medical practice funding options with Smarter Loans, an online resource dedicated to helping small businesses make smarter financial decisions.

Read the full article to learn more about:

• 6 popular medical practice funding options in Canada, including BDC loans, bank loans, alternative business funding, business lines of credit, practice acquisition loans, and equipment financing
• What’s the best physician business loan for your needs
• How to use medical practice funding

Small businesses make up approximately 98% of businesses in Canada, employing about 70% of the Canadian workforce.

There are many small business funding options available to help small businesses in Canada get started, manage expenses, and continue to grow. Between government-supported programs and lenders like the Canada Small Business Financing Loan program and the Business Development Bank of Canada, commercial banks, and alternative lenders, it can be difficult to choose the right funding for your business.

To help you find the right funding for your needs, we've outlined 4 of the best small business loans in Canada including CSBFL loans, BDC loans, bank loans, and alternative funding.

The Canada Small Business Financing Loan (CSBFL) program is administered by the federal government, similar to the Small Business Administration (SBA) in the United States. The government shares the risk with the lender by guaranteeing up to 85% of the loan, making it easier for small businesses to get financing from financial institutions.

Up to $1M in funding is available, but CSBFL funds can only be used for specific purposes, including:

• Purchasing or improving land or buildings used for commercial purposes, typically with up to 15 year terms
• Purchasing or improving new or used equipment, typically with up to 10 year terms
• Purchasing new or existing leasehold improvements, such as renovations to a leased property by a tenant, typically with up to 7 year terms

No more than $350,000 can be used for purchasing leasehold improvements, improving leased property, or purchasing or improving new or used equipment. Past purchases made within the last six months are eligible for financing. Funds cannot be used for goodwill, working capital, inventory, franchise fees, or research and development.

To help you find the right funding for your needs, we've outlined 4 of the best small business loans in Canada including CSBFL loans, BDC loans, bank loans, and alternative funding.

Canada Small Business Financing Loans are available to both established small businesses and start-ups operating in Canada with gross annual revenues of $10M or less. Farming businesses are not eligible.

Collateral or a personal guarantee may be required, potentially up to 25% of the loan amount.

Business owners must apply for a Canada Small Business Financing Loan through partnering financial institutions, including most major commercial banks. These institutions deliver the program and are solely responsible for approving your application. If you are approved, the financial institution will disburse the funds and register the loan with Innovation, Science, and Economic Development Canada.

Business owners must apply for a Canada Small Business Financing Loan through partnering financial institutions, including most major commercial banks. These institutions deliver the program and are solely responsible for approving your application. If you are approved, the financial institution will disburse the funds and register the loan with Innovation, Science, and Economic Development Canada.

Rates and fees for Canada Small Business Financing Loans are determined by the partnering financial institution. Rates may be fixed or variable depending on the loan amount, as well as your business's creditworthiness and risk assessment.

All Canada Small Business Financing Loans are subject to a registration fee that equals 2% of the total loan amount. The borrower must pay this fee to the lender, but it may be financed as part of the loan. Other fees, such as document preparation and application fees, may apply and will depend on the lender you're working with.

Canada's five major banks-TD, RBC, Scotiabank, BMO, and CIBC-all offer loan programs for small businesses. Some of these banks offer funding through the Canada Small Business Financing program in addition to other funding options such as term loans, business lines of credit, asset-based financing, operating credit, equipment financing, commercial mortgages, and more.

Every bank offers different loan options with different amounts, terms, and fee structures. Short term and operating loans, mid term, and long term loans are available with loan amounts starting at $10,000. 7-10 year repayment terms are common, but some loan options have terms up to 30 years.

Depending on the type of funding you're seeking, funding from commercial banks (excluding Canada Small Business Financing Loans) may be harder to acquire than other lenders. Most small businesses lack the credit history or don't have the collateral required to qualify, especially if they're in the start up phase. In this case, alternative lenders may be the best option, especially if you've been in business for at least six months.

Commercial banks typically do not offer an online application, and require business owners to speak to a representative in-person or on the phone to initiate an application. Application fees may apply.

Fixed and variable rates are available depending on the specific type of funding you're seeking.

The Business Development Bank of Canada (BDC) is wholly owned by the government of Canada. The BDC offers a number of funding options for businesses at every stage of the growth process, including loans for businesses in operation for less than 12 months, between 12-24 months, and for longer than 24 months.

Funding up to $100,000 is available, and in some cases can be deposited within 24-48 hours. A number of funding options are offered depending on how you intend to use the funds. Funding is available for a number of purposes, including:

• Supporting small projects
• Buying or renovating facilities or real estate
• Working capital
• Purchasing or transferring a business
• Purchasing equipment
• Fulfilling large purchase orders
• Investing in new technologies

Special financing for tech companies is also available, as well as financing programs for black and indigenous business owners.

The BDC also offers advisory and consulting services, including leadership and management coaching, business strategy, financial management, operational efficiency, e-commerce, digital technology advice, and more.

BDC loans are available to businesses in Canada at all stages of growth, including start-ups. Eligibility requirements depend on how long you've been in business and what type of funding you are seeking.

To apply for a BDC loan, you must be a Canadian citizen or permanent resident and have reached the age of majority in the province or territory in which you live.

Business owners can apply for BDC loans online using the BDC's step-by-step application process. Be prepared with information about your business and your business's project. Once you submit the online form, a representative will reach out to you to discuss financing options.

Rates and fees will depend on the specific type of funding you're seeking, as well as your funding amount and your business's credit and financial history.

Alternative lenders like Bluerock Options® emerged after the 2008 recession in response to a growing need for accessible small business financing. These lenders base approvals on more than just your credit score, making it easier for more businesses to get small business loans they need. They also generally offer the simplest application forms with fewer paperwork requirements, making alternative lenders ideal for business owners who don't have time to put together an extensive application or who need funding quickly.

Alternative lenders offer multiple types of funding, including traditional lending options like terms loans and lines of credit, as well as innovative new funding options like merchant cash advances and invoice factoring. Keep reading to learn more about these funding options.

There are no restrictions on how funds can be used. Common uses for alternative funding include:

• Working capital funding or extra cash flow. Alternative funding can be used however you need, whether it's for payroll or rent, or to kickstart marketing or other growth strategies, or respond to unexpected expenses.
• Financing the purchase of equipment or inventory
• Remodelling or renovating, purchasing a new location, or moving to a new location
• Hiring and training new employees

Eligibility requirements vary by lender. Most lenders require businesses to be in operation for at least 6 months and meet a minimum monthly revenue threshold for 3 consecutive months.

Alternative lenders base approval on more than just a business's credit score, and will consider other factors like revenue and cash flow, vendor payment history, and online reviews. This means that even businesses with low credit scores can be approved for funding from these lenders.

Business owners can apply for alternative funding online using a simple, streamlined application form. Once you submit your form, a representative will contact you to discuss your funding options. Depending on how quickly you are able to supply the requested paperwork, you may even receive your funding in as little as one business day.

Because approval requirements are more flexible, rates and fees may be higher. However, it's a common misconception that rates and fees are always higher than other forms of funding. Ultimately, your rates will depend on your business's creditworthiness and risk assessment.

Multiple types of funding are available through the Canada Small Business Financing Loan program, commercial banks, the Business Development Bank of Canada, and alternative lenders. Here are 5 of the best small business loan options in Canada:

With a term loan, a lump sum of funding is given to a business and is repaid over a set term length, typically in monthly instalments. Term loans often have longer term lengths depending on the purpose of the loan-real estate loans, for example, may have longer term lengths than equipment loans. There may be restrictions on how the funds can be used.

Funding limits, rates, and fees for term loans depend on your lender, your business and personal credit history, your overall risk assessment, and the purpose of the loan.

Term loans are ideal for:

• Businesses seeking larger loan amounts to finance specific purchases

Business lines of credit are similar to business credit cards, but with longer terms and higher limits. With a line of credit, you can draw and repay from the line as needed, and you only ever pay interest on the amount you borrow.

Business lines of credit are ideal for:

Businesses that want a flexible cushion for cash flow troubles or access to extra working capital to manage unexpected expenses

Learn more about alternative business credit.

A merchant cash advance (MCA) is not technically a loan. It's a non-loan form of financing known as a purchase of future receivables. With an MCA, you'll receive cash up front in exchange for a percentage of your business's daily or weekly debit and credit card sales until the advance has been repaid. There are no restrictions on how funds can be used.

Merchant cash advances are ideal for:

• Businesses that have a large number of card transactions
• Businesses with lower credit
• Businesses seeking flexible working capital funding

Learn more about merchant cash advances.