Damn You SBL Canadian Government Loans ! Secrets To Unlock Federal CSBF Loan Success

Solid Tips and Info On The Canada Small Business Loan –
P.S. – It’s Not That Small


Information on the SBL loan program in Canada . Can Canadian government federal loan guarantees help finance your business . Here’s how! CSBF loans work.



Damn you SBL Canadian government loans !That's one battle cry of Canadian business owners who we meet that are either desperately seeking knowledge in the area of the federal Small business loan or who feel frustrated around what they feel the process is to successfully secure such a loan.

A better cry they w would prefer would probably be ' Release the coffers ‘. They would of course prefer to be among the many thousands (approximately 8000) of businesses in Canada that annually are successful in complete the gov't small business loan.

So whets the difference between winning and losing when it comes to securing a government SBL loan? Several factors come into play... let’s discuss some of the important ones.

It's no secret of course why business owner seek this loan. it has strong rates, terms and structures that quite frankly even large corporate borrowers can secure. What do we mean by that? For one thing, the majority of private businesses in Canada have to ensure the owners are prepared t personally guarantee their loans and credit lines. That’s the same Canadian government loans, except, and it’s a big except, your guarantee is limited to 25% of the loan. Talk about a good thing!

Another point in the SBL scenario is that the majority of loans and leases in Canada cannot be prepaid without penalty. By utilizing federal government loans for your business you can prepay with penalty, if you're fortunate enough to be able to. While many Canadian business owners and financial managers would like to be in a position to do this, quite frankly if you are financing assets and leaseholds at good rates and terms why wouldn’t you want to use valuable cash flow elsewhere, such as growing your business .

Many Canadian businesses do not feel the banks are pro lending when it comes to smaller and medium sized businesses. By the way, the actual revenue cap for the federal SBL loan is 5 million dollars, so we do acknowledge that that eliminate many larger firms who certainly wish they could secure the SBL loan.

Whether or not you have confidence in the banking system when it comes to corporate lending is a whole different discussion , the reality is that that lack of confidence should go away when you're applying for a govt small business loan .

Critical to successfully securing the amount of financing you need under this great loan product is the ability to find and work with a banker who understands the program. This unfortunately is a problem businesses should have to deal with, but are faced with when it comes to the SBL program. In our opinion many bankers simply don’t understand or want to bother with the program. It's important to secure the services of a great SBL banker who recognizes you as a client the bank wants to have, and keep.

Some other great secrets around being 100% successful in SBL loans? Not as complicated as you think.

Understand the nature of the program and what it can and can’t do

Prepare a solid proposal that provides ALL of info required on an SBL
Application - there are 6 or 7 key basic criteria

Anticipate questions and any worst case scenario

You may wish to increase the chances of your SBL Canadian government loans process by doing something very simple - secure the services of an expert - Typically a trusted , credible and experienced Canadian business advisor who can fast track your transaction, and , by the way, one who probably knows the best banker in town anyway!








Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

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.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/sbl_canadian_government_loans_federal_loan.html

5 Other Myths About Canadian Government Loans . The BIL SBL loan Isn't What You Think!

You Need To Know This About SBL Loans !


5 Other Myths About Canadian Government Loans . The BIL SBL loan Isn't What You Think!



Canadian government loans. We wrote recently about key misunderstandings on the SBL loan program in Canada. We cleared up some myths, hopefully, and... here's some more!

Myth # 1- It can't get any better than this when it comes to misunderstanding. Many Canadian business owners and financial managers are under the distinct impression that if one bank declines your submission then all Canadian chartered banks might, or will do the same.

Here it's also necessary to step back a bit and say that the SBL BIL (Business Improvement Loan) is run my Industry Canada, the federal department branch. However on a day to day business you simply deal with your local banker or via an experienced advisor.

So back to our point, the reality is that if a bank did in fact not approve your submission another bank just well might. Of course we're making the assumption you have properly prepared, which unfortunately isn’t always the case.

This myth, if we can call it that, is one of our biggest ' bones to pick ' with the program, It's that each bank ' interprets ' and then underwrites the program in a different manner. Some even choose not to participate in the program at all, and worse, many do not train their staff to properly understand and explain the program to their clients. But we digress....!

It might be best in many cases to speak to an expert in this area to determine if in fact you are working with the right parties. Talk about saving you time and money!



Myth # 2- Are you guaranteed funding if you have a strong submission and a proper business plan and cash flow forecast. One that addresses the who, what when where and why scenarios as a good plan should. The answer, unfortunately, is no, there are no guarantees. Again, not our favorite way of doing things from our perspective, but each bank underwriter has their own interpretation of your business's success. In our opinion they might be biased about things such as your industry, your geography or location, etc, Suffice to say preparing a tight plan and anticipating all the questions and issues sure helps.

Myth # 3-The rates and terms and structures
offered by each bank differ even though it’s the same Canadian government loans program. The answer is simply no, there are no differences, and the rates are the same under the program, essentially 3% over prime. Where misunderstanding occurs is where each bank has different advance and down payment scenarios. The permanent equity down payment you need in such a loan by the way is 10%.

Myth # 4 - You only need 10% down to get approved and qualified. In theory, correct, in practice not correct! Again, different banks may require some additional working capital back up to help guarantee business success. And again, and not our favorite way of doing things, each bank is different.

And our final debunked myth? Many applicants think they need outside collateral or 100% personal guarantees or other guarantors on the loan, which by the way caps out at $ 350,000.00 as the maximum you can borrow. Not the case. The equipment and leaseholds and even real estate you choose are not collateralized by your personal assets. That’s a good thing.

Is the SBL BIL loan for you? We sure think it is, as long as you have the proper information. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you to ' debunk those myths and get you ... approved!




Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


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.
Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/canadian_government_loans_sbl_loan_bil.html