Merchant Cash Advance (MCA)
| Best for | Fast working capital, cash-flow-driven approval |
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| Typical range | $10K – $1M |
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| Speed to funding | 24–72 hours |
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| Cost | Factor 1.15–1.45 |
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| Collateral | Unsecured |
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Business Line of Credit
| Best for | Fluctuating cash needs, payroll smoothing |
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| Typical range | $25K – $500K |
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| Speed to funding | 3–10 days |
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| Cost | ~8–20% APR |
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| Collateral | Often unsecured |
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Invoice Factoring
| Best for | B2B businesses with slow-paying clients |
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| Typical range | $50K – $5M |
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| Speed to funding | 3–7 days setup, same-day after |
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| Cost | 1.5–4% of invoice |
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| Collateral | A/R is the collateral |
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Equipment Financing
| Best for | Trucks, machinery, kitchen, construction, tech |
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| Typical range | $25K – $5M |
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| Speed to funding | 3–7 days |
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| Cost | ~7–18% APR |
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| Collateral | The equipment |
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Bridge Loan
| Best for | Short-term gap until a known future event |
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| Typical range | $100K – $10M |
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| Speed to funding | 5–15 days |
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| Cost | ~10–18% APR |
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| Collateral | Usually asset-backed |
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Term Loan
| Best for | Growth, expansion, refinancing |
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| Typical range | $25K – $2M |
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| Speed to funding | 7–20 days |
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| Cost | ~8–22% APR |
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| Collateral | Sometimes |
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Acquisition Financing
| Best for | Buying a business or partner buyout |
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| Typical range | $500K – $50M+ |
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| Speed to funding | 20–60 days |
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| Cost | Stack-dependent |
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| Collateral | Target assets + PG |
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How to choose
Three questions narrow the field instantly:
- What is the use of funds? Equipment → equipment financing. Receivables tied up → factoring. Recurring cash fluctuations → line of credit. One-time growth investment with clear ROI → term loan or MCA.
- How fast do you need it? Under 72 hours → MCA or short-term LOC. Under two weeks → equipment, factoring, smaller term loans. Longer horizon → bank term, acquisition.
- What does the file support? Strong credit and 2+ years history opens bank pricing. Cash-flow-driven approvals open the alternative market. Voxen pre-screens against 50+ capital sources before you submit anywhere.
Frequently asked questions
What is the most common type of business loan in Canada?
For small and mid-sized businesses, the most common alternative financing instruments are merchant cash advances, business lines of credit, and equipment financing. Traditional bank term loans dominate the bankable segment but cover a small share of SMBs.
What is the fastest type of business financing in Canada?
Merchant cash advances are the fastest, with funding in 24–72 hours after a complete application. Short-term lines of credit can close in 48–96 hours.
Which business financing has the lowest cost in Canada?
Traditional bank term loans and CSBFP-backed loans are typically the lowest cost, followed by secured lines of credit. Alternative working-capital products trade cost for speed and accessibility.
Can a business use more than one financing product at once?
Yes. Most growing SMBs use a stack — for example, a line of credit for daily operations, equipment financing for assets, and a term loan for expansion. Voxen Capital structures the full stack to optimize cost and flexibility.
