Journey Capital

Journey Capital, online business financing for Canadian small businesses

Journey Capital is a direct lender based in Montréal that provides financing to small businesses across Canada. The company states that it makes lending decisions in-house and works directly with clients to tailor a financing solution, rather than acting as a broker. Its catalogue revolves around three credit products, all accessible through a single online application that the company says takes about ten minutes to complete.

Three credit products

• Business Term Loan: fixed-term financing with a fixed and predictable repayment schedule over a set term, from $10K up to $500K.
• Business Line of Credit: on-demand financing of up to $500K in which the borrower pays only for what is drawn.
• Flex Funds Advance: variable-term financing from $5K up to $500K, with repayment aligned to the natural highs and lows of the business. The company specifies that Flex Funds is not a loan but a sale of future credit and debit receivables.

Pricing for Business Term Loans is stated as ranging from 8% to 29% cents on the dollar, meaning that for each dollar borrowed the interest paid ranges from $0.08 to $0.29. Lower rates may be offered to businesses with strong creditworthiness. Loans above $300,000 may require additional security as collateral and are subject to additional approvals.

Application, approval and funding times

The application is completed online and, according to the company, a pre-approval decision can arrive almost instantly. File processing averages 24 to 72 hours, and funds are typically transferred within 24 hours of receipt of an accepted financing contract. Line of Credit withdrawals can be funded instantly via Interac e-Transfer. Applying is described as free and without obligation.

Journey Capital states that applying does not affect the credit score: a soft credit pull is used for application and adjudication purposes, which appears on the credit report but has no effect on the score, and a hard pull is performed only if the applicant accepts one of the credit products.

Eligibility requirements

The company lists basic conditions for applying: at least six months in business, a credit score of 600, annual revenue of $120K, incorporation in Canada and a Canadian business bank account. It states that it supports a wide range of industries and business types, citing retail, food and beverage, and health and wellness, including restaurants, convenience stores, automotive service providers, salons and specialty shops.

Company history and scale

The company traces its origins to 2008, when the financial crisis tightened bank credit for small businesses and, in its account, opened a credit gap that fintech lenders moved to fill. Its founders, David Souaid and Harley Greenspoon, took notice, and in 2009 Mercantile Advance was created as the first iteration of the current company, offering merchant cash advances to Canadian small businesses. Journey Capital now reports a founding year of 2009, $1B in capital funded and more than 16,000 loans funded.

Positioning and service model

Journey Capital describes itself as a people-first lender that combines an online experience with personal client relationships, and it highlights transparency and responsible lending among its principles. It provides bilingual service across Canada and states that it serves small businesses in all provinces and territories. A team of lending advisors is available to discuss credit needs and walk clients through the available options.

The company reports a 4.9/5 Trustpilot score and presents testimonials from business owners, including a chef and other owners, describing the difference between its service and that of larger banks. It also publishes guides and articles on business funding, eligibility and choosing a financing solution.