We had the honour of speaking with Avi Bernstein, CEO of 2M7 Financial Solutions, who provided us with insightful information about how the lending environment is changing for small businesses, the biggest obstacles SMEs face when trying to secure funding, the considerations 2M7 Financial Solutions makes when determining which businesses to fund, its services for SMEs, and advice for SMEs who are looking for ways to secure funding.
How is the lending landscape changing for small businesses? What are the biggest challenges facing small businesses when it comes to securing funding?
Most small business owners have a clear vision of what they need in order to grow their company, but struggle to secure the working capital required to achieve it. Furthermore, rapid shifts in new technologies, increased competition, and the state of the economy have led to an increased need for financing.
While some businesses are able to channel capital through personal financing or equity investors, most businesses need to rely on small business loans. However, it is becoming increasingly more difficult for small businesses to access funding from traditional lenders such as banks and credit unions due to the extensive list of requirements. Regardless of profit levels, small businesses frequently get denied funding due to factors such as limited business history, insufficient collateral, inadequate capital investments, low credit scores, or because their industry is considered too risky.
This is where alternative lending comes in, and where 2M7 can help small and medium businesses secure the financing they need to operate and grow their businesses.
How does 2M7 Financial Solutions decide which businesses to fund? What factors go into making a decision to provide small business funding?
2M7 Financial Solutions strives to help as many Canadian businesses as possible get access to the funding they need. With small businesses increasingly facing more challenges in getting approved for loans and with approval rates in Canada seeing a significant decline over the years, 2M7 developed a proprietary algorithm to evaluate risk and determine credit worthiness in a new way, based on only a few key factors.
If you are a business located in Canada, have been in operation for at least 90 days, haven’t filed for bankruptcy, and make more than $10,000 in gross monthly revenue – you have a 97% chance of being approved for funding. It’s that simple.
2M7’s quick approval process has already helped fund thousands of businesses across Canada that might not otherwise qualify for a traditional loan, despite being profitable. We’re proud to support small businesses and our goal is, first and foremost, to help our small business clients succeed.
What advice would you give to small businesses who are looking for ways to secure financing? What do you think is the most important thing for business owners to consider when it comes to obtaining financing?
It is critical that small business owners do their homework before applying for business financing, in order to understand the different types of financing available and to determine which lending option is the best one to help grow their business. Each financing option has different application requirements, approval processes, terms and restrictions, repayment schedules, and other factors.
For example, business loans from banks tend to have slow processing times and typically require you to provide extensive paperwork in order to qualify. Traditional lenders often look at the number of years you’ve been in business, your credit score, debt-to-income ratio, profit margins, and they normally require you to put up some type of collateral – and this type of loan is often not a good fit for most small businesses.
What are the benefits of small business funding? Are there any services that 2M7 Financial Solutions offers that could be of benefit to small businesses?
Small businesses need money to operate and expand – from sourcing and inventory, to equipment, staffing, marketing, and more. 2M7 helps small businesses easily access the funding they need, which enables them to accelerate their growth.
In today’s fast-paced competitive landscape, small businesses need faster access to funding. That’s why we offer unsecured funding up to $250,000 – with funds deposited directly into the business’s bank account within 24-48 hours, to immediately use however they need in their operations.
2M7 has extensive expertise in Canada’s lending industry and a deep understanding of the challenges that small businesses face, which is why 2M7’s funding is based around simple terms and flexible repayment structures. Repayments are based on month-to-month sales performance, so businesses don’t need to worry about debt repayment affecting their cash flow during slower sales periods.
Additionally, unlike traditional lenders, 2M7 does not place limitations on how or where the funds can be used. We understand that business is unpredictable and that a small business’s priorities can change, so we entrust our clients with the freedom to use the funds however they see fit in order to help their business prosper and grow.
