The acquisition by merchant cash advance company AmeriMerchant LLC of CanaFunding LLC this week is enabling independent sales organizations to sell cash advance services in the U.S. and Canada.
U.S. ISOs can sell AmeriMerchant's cash advance services to Canadian merchants, and cash advance resellers in Canada likewise now may market to U.S. merchants, said David Goldin, AmeriMerchant's president and chief executive.
Goldin would not disclose the terms of the acquisition, which was announced Aug. 2.
CanaFunding launched in 2007 and will retain its brand name. Both companies are based in New York.
"This opens up more merchants," Goldin said. "There is still a tremendous amount of business to be sold."
Sales agents make approximately 28% in commission from a typical merchant advance, Goldin said. The average U.S. advance amount is $20,000.
Merchants receiving advance funds from AmeriMerchant repay the debt based on a percentage of their credit and debit card receivables.
CanaFunding likely will not be the last acquisition for AmeriMerchant, Goldin said.
