In Canada, you can get a business loan no matter whether you have an existing, established and successful business or you are just starting out. Experts recommend getting a line of credit. It should not be your only source of money, but a credit line is particularly appropriate for enterprises that are just starting out. Underestimated and unexpected expenses often occur, and you have to watch out for such. You should pave the way to this sort of funding by establishing a good relationship with the local bank and a sound credit rating.
An additional or second option for startups is a business loan from a credit union or a bank. It is not that hard to get one in Canada at the moment, because a lot of people are successfully starting small businesses as the global downturn fades into oblivion. As a result, traditional lenders have more interest in small businesses than they did in the past.
The Business Development Bank of Canada has a number of programs, under which you can be approved for a start up business loan. One such program is the Co.Vision, offering financing of up to $100,000 for new businesses that are seen as reliable in the long term. Business owners are offered venture capital, financing, business loans, and consulting. Financing is intended to protect companies’ cash flows through repayment schedules, fitted to their business cycles. Financing is offered with longer terms, and it is possible to defer capital payments. Business owners can use the funds to purchase commercial real estate, including buildings and land. They can improve or expand rented or existing premises or construct new premises. In addition, funding is intended for business owners who seek to purchase used or new machinery and equipment, as well as for those who need startup financing. The money can go toward franchise purchases as well as marketing costs and other startup expenses.
If you need a business loan, lenders in Ontario are not always the only option. The Canadian Youth Business Foundation, for example, is one major lender. This non-government organization offers loans to startup businesses up to $15,000, available to persons aged 18 to 34.
Alberta Women Entrepreneurs (AWE) is a women’s organization offering assistance to women in business, among which start up business loans. Other options include economic development organizations throughout Canada, such as the Community Futures Development Corporations and the Community Business Development Corporations.
You can apply for a loan of up to $500,000 from the Canada Small Business Financing Program. This establishment provides term loans for fixed asset needs.
Other sources include government-sponsored business start up programs, investors, and government grant programs.
Most credit unions in Alberta also cater to established businesses, providing commercial and retail lending, lines of credit, SBA loans, credit cards, and more. Fast business loans are offered by some as well. Some business incubators offer assistance to enterprises in their first year. Canadian community banks are among the institutions that offer financing to existing businesses, facilitating refinancing and small business checking. Apart from financing, you could also receive business counseling, mentoring, and consulting. Looking for the right small business loans program in Ontario? Find out more here.