We actually vividly remember when start up financing was easy to get for the Canadian entrepreneur. The timeframe? Pretty well… Never!
Financing for a new business venture in Canada has always been a challenge – and today with globalization, banking crises, and credit bubbles we’re pretty much permanently challenged!
Is there any good news? There is, and the reality is that for the informed entrepreneur there are in fact numerous finance and loans options, some of them even ‘ traditional ‘.
Start up finance can come in many forms and it’s important to know exactly where those sources of funds are. In fact we’re fairly positive that a combination of several different sources of capital can in fact get your business ‘ started up ‘.
The downside of not getting either all the financing you need, or the wrong financing means just one thing – you’re potentially closer to failure on your project.
At the heart of your business idea is the business concept of equity and debt. You need a healthy dose of both to pull off business success. The concepts are very simply, equity denoting ownership or your contribution to the financing, as well as the debt… the borrowed funds. There are some grey areas of course – for instance you could secure a loan from friends and family, but if properly documented it’s really a debt obligation.
The key to obtaining the right financing at the start of your venture is the plan… and that’s the business plan. While clients show us plans that are very heavy on marketing and sales and product potential we tend to gravitate to the financial portion of the plan, trying to ensure that cash flow and cost and revenue estimates are accurate. A simple case in point is that many client plans show revenues of 100k in month one… the problem they have forgotten… That revenue isn’t collected until month 2 or 3!
What are some of the actual finance solutions then that are available to the start up entrepreneur. You’d be surprised. They include:
Government guaranteed SBL loans (easier to get than you think)
Purchase Order Financing
Receivable and Inventory Financing
Financing a SR&ED tax credit for instant cash
Business Credit Cards
Asset Based Loans
Any one of these options can generate hundreds of thousands of dollars in financing for the start up entrepreneurs of Canada. The Government Small Business loan in fact gets you up to 350k of financing for needs such as equipment, leasehold improvements, computers, even software, etc.
If you’re looking for straightforward and real, accessible solutions for a new business venture in Canada seek out and speak to a trusted, credible and experienced Canadian business financing advisor. Getting funded might not be the challenge you think.
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years – has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
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