In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.
Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.
Monday, January 27, 2014
How To Get A Govt Loan In Canada. SBL Government Business Loans For These 5 Uses
ON THIS DAY IN CANADIAN BUSINESS HISTORY :
JAN 27/1994 - North American Free Trade Agreement ( NAFTA) goes into effect, creating a potential tariff free zone in Canada, the US and Mexico
'This doesn't seem to work when I cross border shop in Buffalo' - Stan Prokop
5 ½ Things You Didn’t Know About Gov’t Guaranteed Loans In Canada
OVERVIEW – Information on SBL government business loans in Canada . Canadian business owners and financial managers want to know how to get a govt loan and how they are used and what they are not appropriate for
Government business loans are a constant topic issue we discuss with clients who are wondering how to get a govt loan in Canada.
In reality there are numerous, 5 in fact uses for this type of financing , and despite the frustration we hear about from many business people and entrepreneurs you would be surprised at how straightforward the program is - if you have the right information and help. Let's dig in.
Many business owners/ managers can be forgiven for failing to understand the govt role in this program. They are in fact not the' direct lender' per se; they are simply the originator and administrator of the program, under the auspices of INDUSTRY CANADA.
So who in fact ' lends' your firm the money? No surprise it's our Canadian chartered banks - your goal is to find a local bank or banker that supports and understands the program. In the school of experience we've found the tuition in finding those bankers somewhat expensive! Your best bet is often to seek the expertise and skills of a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in fast tracking an approval if you meet the straightforward guidelines.
So about those uses for government business loans in Canada. First of all many will be surprised that you can utilize the loan (commonly called an 'SBL' to acquire an entire business. It's a straightforward process - all you will need is your offer to purchase, a business plan, and the existing financial statements of the business you are acquiring. The loan will finance (to a maximum of 350K) all assets and leaseholds of the company you are looking to acquire.
Another solid, in fact very solid, use of the program is to acquire a franchise. Other than dealing with very specialized franchise finance firm government business loans are a great and popular way to finance a franchise.
Looking to acquire commercial real estate for your business. In many cases this involves owning the property your business occupies. SBL loans finance real estate up to $500,000.00 on amortizations of 7-10 years. Although we don't often see this type of deal as opposed to a commercial mtge. you should at least know it’s available!
Starting up? Many ' ' start up ' businesses in Canada have a lot, and we mean a lot of problem sourcing financing. The govt SBL loan program finances start ups and can be a great initial vehicle to get your business project or idea going. Financing benefits under the program even match the financing the big boys themselves can't even get - i.e. repayment without a penalty, limited personal owner guarantees, etc.
When it comes to financing assets many Canadian businesses gravitate to equipment financing in Canada for fixed asset acquisition. However government business loans also a solid mechanism to acquire equipment under generous amortizations and good rates.
The SBL program has solid benefits and terms. Those terms include rates of only 3% over prime, limited personal guarantees, long amortizations, no repayment penalties, and the ability to access business credit that you might not be able to achieve directly through banks or commercial finance firms.
But didn’t we say there were 5 1/2 things you might not know ?What's that other half about? It's our way of reminding clients that the loan is not used for cash loans or working capital lines of credit so don’t make that mistake when you require cash flow financing.
Today’s take away? Pretty simple - when you are looking at how to get a govt loan seek out the right expertise to maximize full benefits and use of this method of financing a Canadian business.
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 :
7 Park Avenue = Canadian Govt Loan Expertise
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