A Government Backed Business Loan : How Not To Fail At SBL Bank Loans

The Path From Start Point To Successful Finish In Govt Business Loans – The SBL Goal Line Is In Sight

OVERVIEW – Information on the government backed business loan in Canada. Known as the ‘ SBL ‘ these bank loans provide tremendous financing possibilities to Canadian business owners and start up entrepreneurs







The government backed business loan in Canada - what Canadian business owner/financial mgr wouldn't want a clear start to finish road map for ' SBL ' bank loans in Canada? Let's dig in.

Expectation, or should we say ‘realistic’ expectation is key in understanding the path to success in govt business loans. Specifically this is the financing offered under Industry Canada's CANADIAN SMALL BUSINESS FINANCING (CSBF) program. Our chartered banks fit in because they are the facilitators of the loan under the government’s ever watchful eye.

So how does the owner/entrepreneur successfully prepare an application and obtain financing approval for these loans? It's all about really bring the pieces of the pie together in accordance with what is really required to achieve loan success - we see a lot of clients focusing and preparing issues and info respectively that is simply not required or is much less important relative to final loan approval. Doing it right allows you to eliminate the pitfalls and failure.

At the outset its key to understand the amount of financing you are eligible for. In the case of the program itself it's specifically $ 350,000.00 for the main offering of the program. (If real estate is involved as the asset financed a 500k loan is allowed - however in our experience SBL loans are rarely used for real estate).

One top expert, and we agree, advises that adopting an ' as much as I can get ‘attitude is a failed strategy!

Here is one case where being specific counts - and that is easily achieved in the following manner: Have a clear ' use of funds ‘statement that specifically identifies the asset and leasehold to be financed, including the $ breakdown. That also reminds us that you need a clear understanding that government backed loans only finance two asset categories - equipment and leaseholds. Equipment by the way can easily include technology, software, etc., as these assets are clearly part of the new economy.

Other key elements of your proposal should include info on the owners - that includes mgmt and industry experience, financial stability, and a general sense of demonstrating you know how to run a business. Newbie’s beware!

The other key element of your application is a strong executive summary, or even better a business plan. This should not be viewed as a difficult document - they can easily be prepared by your accountant, or even better an advisor who works in this area and understands the basics of what the banks like to see - specifically cash flow, an opening balance sheet, etc.
Fine tuning the cash flow to show a positive and realistic ability to repay the loan is essential.

The majority of businesses applying for an SBL loan operate out of a premise, and you should ensure that you have a lease that is at least as long as the term of the loan - for some reason lenders like to know you'll still be around !

In the cases of your ' owner equity ' or ' down payment ' in the program that is a minimum of ten per cent but depending on who you are dealing with that might be more. Demonstrating up front you have ' proof of funds ' is key.

If you want to become a quick ' hero ' in SBL government backed loans and have that ' zero to 60 ' feeling 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 govt bank loans that are achieved annually by as many as 8000 other businesses in Canada that take advantage of the program.



Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
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 FINANCIAL = CANADIAN GOVT BACK LOAN FINANCING EXPERTISE






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' Canadian Business Financing With The Intelligent Use Of Experience

Stan Prokop