Welcome to another edition of the Merchant Advisor – Merchant Advance Capital’s monthly newsletter! As is customary, the Blog edition of the Merchant Advisor brings you the longer form version with lots more space at hand to discuss issues and ideas relevant to inquiring small business minds. Without further ado: read on for some encouraging news on Canadian economic policy – suggesting that an increase small business investment may be very prudent in the coming months!
Canadian Economic Growth Exceeds Expectations
Growth in the Canadian economy exceeded expectations in the second quarter as GDP expanded by 3.1% during the period. Most of this growth was driven by an almost 4% rise in consumer spending and a 17.8% increase in exports. While growth in business spending was positive, it increased at the far more subdued rate of 0.9% in the quarter. Does this really suggest that business owners in Canada are pessimistic about the state of the economy? Recent data suggests that is not the case.
The Right Time to Grow With Small Business Investment
The Canadian Federation of Independent Business (CFIB) Business Barometer index closed August at 65.5 (its third-best reading so far this year.) An index reading above 50 means owners who expect their business’s performance to be stronger in the next year outnumber those expecting weaker performance. Additionally, in a recent survey done by Pollera on behalf of the Bank of Montreal, 44% of businesses across Canada expect to grow next year versus 11% who expect contraction – and a almost 30% of those surveyed plan to increase capital investments.
A Merchant Advance Can Help You Grow
At Merchant Advance Capital, we can help businesses ensure they are well positioned to capitalize on economic growth and help in the management of their financing needs. Given the mounting evidence of economic improvement, it makes sense for small business owners to invest in preparedness either through hiring, expanding production capacities, upgrading facilities or otherwise acquiring the resources, inventory and assets necessary to grow and flourish in a period of increasing consumer confidence.
Merchant Advance funding provides small businesses with an efficient way to obtain the working capital necessary to make these preparations quickly and with minimal disruption to the overall cash flow of the business day-to-day. Our underwriters will work with you to structure a customize and flexible solution to meet your specific funding needs. Get in touch today to find out how your small business can take advantage of the economic opportunities at hand.