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Time To Explore Govt Business Loans In Canada ? Spoiler Alert : They Are Guaranteed By The Government!
OVERVIEW – Information on government small business loan financing in Canada . Govt funding for these loans is guaranteed , making these loans accessible to startup and growing firms with SME COMMERCIAL FINANCE needs . Loans up to maximum $ 1,000,000.00 are available for specific asset categories
Government small business loan financing in Canada should always be explored when your growing (or new) business requires external financing. But do you qualify and what exactly is the application process? We're answering those questions, so let's dig in.
Why then are govt guaranteed loans so attractive to many owners/entrepreneurs? The main reason is probably that it's an effective way of raising capital to build, grow, or buy a company. Simple as that.
Why does the govt, via ' INDUSTRY CANADA' sponsor this program? Simply speaking it's all about providing financial backing for economic growth. Andy by the way, large companies, or public companies need not apply. Small to medium sized enterprises run the economy - there's no debate about that - so that loan guarantee from the government is a valuable part of the economy.
But aren't there other alternatives to raising capital in Canada? Yes there are, but our Canadian chartered banks are more than reluctant to fund smaller start ups or businesses that have not fully matured and don’t have the profits, cash flow and collateral demanded by the banks.
We mention by the way that many entrepreneurs finance franchises through the program as it's an effective way to buy the business. Additionally any other business can be purchased through the program if the fundamentals qualify.
The program only finances two asset categories, three actually when you include real estate, although in our experience most firms finance their land and buildings through conventional commercial mortgages.
So what then does the program finance? Answer: Equipment and leasehold improvements. Simple as that.
It gets even better when you understand the flexibility and structure of the program. Rates are very competitive, prepayment options are provided, loan term flexibility can be up to 7 years, and only a small portion of the loan must be guaranteed by the owner/owners.
The government provides a loan guarantee to the Canadian chartered banks who administer the program. Hint: It's important to find a good banker who is familiar with the program. We've spent a lot of time doing that!
Qualifications for the program - owner reasonable personal credit history, a minimum down payment/equity component to the loan, a business plan and cash flow, and a proper use of the funds for the aforementioned two asset categories - equipment and leaseholds.
Is it time you explored the program? Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can ensure you're ' on the trail ' of the govt small business loan program.
P.S. The new loan cap is $1,000,000.00 so we're thinking of using the word ' small ' a lot less these days!
Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com
7 Park Avenue Financial
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing with the intelligent use of experience '
ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.
Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.
Stan Prokop
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