OVERVIEW – Information on the Canada small business financing loan program. Government loans provide capital for start up, acquisition and expansion needs . Here is how
The Canada small business financing loan must sometimes feel like some sort of ‘ cover up ‘ when it comes to business owners /managers understanding what this financing is , how it works , and understanding how to maximize the benefits of the program. Does it have to be that way? We don’t think so, so let’s dig in.
Let’s take a look also at some of the reasons Canadian business considers the ‘ SBL ‘ government loan. For the majority of businesses in Canada it’s pretty well a focus on growing and expanding the company. That often is a challenge when over all economic growth is sometimes slow.
Financing via government business loans can be used when the desire is to add new products and or services to your current mix. These often could require new equipment or leasehold improvements.
In other cases new asses might be able to propel your business into much larger growth than it is currently attaining – that might be via new sales geographies or new vertical product or service niches.
If your business is retail oriented bank financing can often be difficult to obtain – part of the reason there is simply that banks view your company as an ‘ all cash ‘ business… so the question they ask is ‘ why would a cash business need credit ?”.
Small business loans (they are not that small – a typical loan amt is $350,000.00 can also be used to acquire new technologies such as computers, application software, etc.
Finally, did you know that the Canada small business financing loan can be used to start a business, acquire a business, or merge with another business. Many busines owners/managers view acquiring a business as a faster way to grow and expand. CAVEAT EMPTOR? Do your due diligence on any purchase, including financial condition, growth potential, valuation, etc!
The SBL loan is sponsored by INDUSTRY CANADA, part of the Canadian federal government. It’s their way of ‘ sponsoring ‘ loans (they guarantee a large part of the loan to the bank) in order to accelerate growth in the SME sector.
Rates , fees and structures under the program are excellent – Rates are at 3% over prime, which currently is some of the lowest business financing and borrowing rates in Canadian history . Structures are typically anywhere from 2-7 years, and there is even no penalty to repay the loan which is often NOT the case in other forms of business financing in Canada.
Fees associated with the program are in our opinion quite nominal, especially when the business owner considers finally being able to access the capital they need.
Industry Canada, aka ‘ the government ‘ does not directly provide the loans, they have chartered our banks to do that, so it’s critical to locate a banker that is familiar with and understands the program.
If you’re looking to have government loans ‘ work ‘ for your business or opportunity seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your financing needs. And trust us, there’s no cover up – government loans, properly done, work.
Aithor: Stan Prokop – 7 Park Avenue Financial :
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 – Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :
Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Direct Line = 905 302 4171
Office = 905 829 2653
Email = email@example.com
‘ Canadian Business Financing with the intelligent use of experience ‘
7 Park Avenue Financial
Canadian Business Financing