Government Small Business Financing Loans In Canada : Safecracking The Federal Loan Program

Ready To Trust Govt Small Business Loans In Canada – They’re Guaranteed !



OVERVIEW – Information on government small business financing loans in Canada . Here’s why this loan is easier to access than you might think – and if it isn’t there are alternatives

Government small business financing loans in Canada are often disregarded by Canadian business owners/financial managers if only for the reason that they have decided that the application process is somewhat of a burden.

Federal govt ' guaranteed ' loans are probably the most basic form of business application , so lets examine who's right and who is wrong on that belief - in effect we're cracking the safe

on this somewhat misunderstood financing . Let's dig in.

In Canada there are various perceptions around business lending in the SME COMMERCIAL finance needs area. Those perceptions include the fact that even though the 2008-2009 recession is well over business credit is still tight.

There are various reasons why the Govt Business loan isn't being pursued. The program itself is a term loan, not a revolving line of credit or cash as many may have been led to believe. That implies taking on debt, as well as knowing that your firm in fact qualifies. That, coupled with our premise that many business people feel the application process is cumbersome (Spoiler alert - It is not!) may be some of the reasons that the federal ' SBL ' loan isn't access by more businesses.

Safe to say also that despite that fact that close to 8000 Canadian businesses every year qualify and are approved for billions of dollars some entrepreneurs/owners might feel that don't qualify. We say entrepreneurs because thousands of start ups and franchises are financed under the program also.

Let's dig into that ' application process'. Is it really as ' intimidating ' as some think? Hardly we maintain. The process includes some of the most standard documentation that anyone would expect in business credit. They include:

An executive summary or business plan around your business/project (This should include some financial projections that clearly reference how the loan will be repaid

Confirmation that the owner/owners have reasonable personal credit

Breakdown of uses of the financing (By the way the program only finances 3 asset categories - equipment, leasehold improvements, real estate)

Basic legal fundamentals around your business - i.e. incorporation details, business address,

We're the first to agree that ' time is money ' so your ability to properly prepare and present your proposal is key. Although all Canadian chartered banks offer the program it's critical to locate a supportive and knowledgeable banker.

Success in the government business loan allows owners/entrepreneurs to:

Start a business

Buy a business

Acquire a new/existing franchise

Grow a company

For those that would still maintain this excellent program is not for them numerous alternative financing solutions still exist - they include:

Receivable financing

Inventory Finance

SR&ED Financing

Asset based non-bank lines of credit

Equipment Leasing/ Sale Leasebacks

Whether you're looking to reap the benefits of the federal Government small business loan finance program, or looking to investigate other financing options seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you 'safe crack' finance solutions you can trust.


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 GOVERNMENT BUSINESS LOAN FINANCING EXPERTISE






Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Small Business Guaranteed Loans In Canada : Here’s Enlightenment On This Federal Loan Program

SBL Loans In Canada Are Right At The Top Of The Food Chain In Financing For New And Existing ‘ Small ‘ Businesses

OVERVIEW – Information on small business guaranteed loans in Canada. How the Federal SBL loan guarantee program works and when it works best



Small business guaranteed loans in Canada , vis a vis the federal ' BIL ' program often require some ' enlightenment ' on a handful of issues . Let's dig in.

Bar none, the federal SBL program is one of the absolute best financing initiatives for a new or existing small business in the SME sector in Canada.

Why then is 'enlightenment'

required. More often than not that comes in several categories:


Many entrepreneurs simply have not heard about the program

They misunderstand the type of financing required

They don't know where to go or who to reach out to in order to simplify the process

They think the gov't is involved (It is but it isn’t what you think!)



Financing options in Canada come typically under term debt or revolving debt (for example - a business line of credit). It's important to not that the SBL guaranteed loan is a term loan, with fixed repayments at an attractive interest rate. Typical terms are 3-7 years depending on what is financed.

When we talk to clients about federal loans we sometimes get the feeling they are like deer caught in the headlights. That feeling more often than not comes from the issue that they perceive a lot of what we could call ' TRANSACTION COMPLEXITY ‘.

We don't buy into that, as the entire process is in fact very straightforward and well documented. It's a sensible program that requires that you supply the following in order to get approved:

Business plan/ executive summary
Cash Flow
Information on the owners - (mgmt experienced/ personal credit history, etc)
List of items to be financed
Proof of a business premises lease where the business will be located

Those items we've noted allow the loan to evaluated, and if they are submitted completely that should typically just take only several days.

But what about the ' government aspect’ ask our clients? The answer we give is often a surprise. While this is in fact a federal program out of INDUSTRY CANADA the reality is that the borrower never meets, talks to, or corresponds with anyone in government. That's because Small business guaranteed loans are administered by the banks under the direction of the government.

That leads us to the concept of ' guaranteed loans’. What's that all about then? , ask the client. Well here's the scoop on that. Small business SBL government loans in Canada are guaranteed against default by the borrower for the majority of the loan. Borrowers are only personally liable for 25% of the loan if there is a default issue.

Two other quick points:

The maximum loan size is $ 350,000.00

The only items the program can finance are ASSETS and LEASEHOLD IMPROVEMENTS

If you're looking for some ' enlightenment ' on small business loans in Canada as a guaranteed by the government seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success in loan financing that suits your business needs.



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 10 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 :

7 Park Avenue Financial = Government Guaranteed Loan Expertise In Canada






Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:
7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769
Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

Stan Prokop

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 Reasons To Consider Canada Government loans . How To Use the SBL Federal Loan Program

SBL Loans - Consider the Program For These Business Needs

Information on Canada government SBL LOANS . The federal small business loan can be used for a variety of business uses .. here are some of them .


We're big supporters of the Canada government loans, commonly called the ' SBL loan ‘. Why? This federal loan (you’ll soon see it’s not as federal as you think ... it's more local ...) can be used for a variety of solid business reasons. What are those uses then? Let's explore.


Canada government loans are the ideal financing solution for a business start up. SBL financing compliments significantly your own equity contribution to the business. A large amount of outside collateral is in fact not required for the federal SBL loan. Traditional financing via Canada's chartered banks and other lenders often make it difficult to achieve any proper level of start up financing.

Amortizations are available that make sense for your start up. You are trying to minimize monthly payments and maximize cash flow. There isn't a day when we don't talk to an entrepreneurial client who doesnt feel their resolve to start and succeed in business isn’t tested, so the federal small business loan is a solution to the testing of your resolve!

Our second category or use of this financing is ' Equipment. When you are looking to purchase assets to grow and maximize your profits government loans make a tremendous amount of sense.

Your equity contribution, i.e. the down payment that you would typically associate with a lease financing is low, the 5-7 year term amortizations make sense, and the bottom line it's a classic use of matching your new assets useful economic life to the term of a loan.


Use # 3 for Canada government loans. Buying a business. Funding from our proposed financing solution allows you to purchase an existing business.

We caution clients that the requirement for purchasing a business using the SBL vehicle requires that the seller agree to an asset sale, as opposed to a share sale. Almost any industry can be financed in this manner, as long as there are assets in the business that you are acquiring.

The good news here is that the emphasis on the financing of your proposed purchase is focused on the previous success of the business, as well as your ability and experience to run and grow the business. The SBL loan can also finance real estate as part of a business purchase - in this case the traditional limit of financing actually increases to $ 500,000.00.

Potential use # 4 for the Federal small business loan - refinancing! If you or your firm incorporated or otherwise have purchased assets within the last 6 months they can be refinanced under our proposed program. This generates working capital that can be put back in your business. In certain cases an appraisal might be required on the asset, but that is a very modest expenditure relative to the benefits of the financing received that come back into your business cash flow.

Finally, use # 5 for Canada government loans. It's buying and financing a franchise. Entrepreneurs in Canada finance thousands of franchises each year under the program, which in many ways is perfectly suited to the challenges of a franchise.

There you have it, 5 solid uses for the utilization for the federal SBL Loan. As we noted federal denotes Ottawa and government, but Canada’s chartered banks administer and fund the program under federal auspices. Speak to a trusted, credible and experienced Canadian business financing on how you or your business can utilize this valuable Canadian business financing vehicle.





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/canada_government_loans_sbl_loan_federal.html

Understanding The Canadian Government Business Loan - Federal SBL Loans Work For New & Existing Businesses

The Canada Small Business Loan Program – Yours To Discover!

Information on the government business loan program in Canada. How the federal SBL financing program loans for your new and existing business makes you eligible for $ 350,000.00 in financing for your new or existing business.





As some , certainly not all ( that’s why we're here) Canadian business owners know the federal government has a long standing and very successful business financing program , aka the ' government business loan '. It’s a federal program in Canada, sponsored by INDUSTRY CANADA, and it is probably suited for your new or existing small (New or under 5,000,000.00$ in revenue) business capital needs.

There's just one problem we’ve perceived over the years. Simply that understanding how the program works, and how you get approved seems to be a mystery to a lot of the clients we meet looking for this type of financing.

Let’s examine some of the key underpinnings of the program, focusing on what this great financing program does, and, more importantly, how you get approved.

First of all, talk about a great partner for your loan. Have you ever needed a co signer? Here's one for you, the government of Canada! We heard their credit is excellent! What we mean of course, when we speak to clients about the program is that the government guarantees the majority of your loan to the bank that underwrites and administers your financing. Talk about a good deal. And you thought you might have to ask your brother in law!

Naturally it goes without saying that this incents the banks and some other institutions that offer the loan to provide your firm with financing that you might not otherwise be able to achieve in a normal traditional financing request.

So we all agree it’s a challenging business financing environment out there. So how can government business loans help your firm?

First of all they finance only 3 things, and that always seems to be a mystery to clients who think the program is a cash or working capital loan. It is not! The three items that the program finances are equipment, leasehold improvements, and real estate. Under the equipment category many of our clients choose to also finance software, which is allowed under the program. And by the way, that’s application software, not software you are going to develop yourself.


So how does a business owner navigate, successfully, the program? We assure clients that you can almost assuredly guarantee yourself approval by following a very specific course of action. There are numerous conditions that can negatively affect your chances of approval, and if you know them you can avoid them.

It’s quite frankly all about your proposal, how it’s presented, to whom its presented, and ensuring you have the basics covered. Those basics are as follows - a minimum 10% equity investment in the financing, reasonable personal credit, a business finance plan that clearly identifies you, your business, and some financial projections that make sense relative to the loan amount you are requesting.

So, the bottom line, you can make understanding the Canadian government small business loan complicated, or easy. We're for easy, so if you want some practical direction in getting a small business loan up to 350,000.00 in place speak to a trusted, credible and experienced Canadian business financing advisor on the positive expectation of an SBL loan approval.



ABOUT THE AUTHOR : STAN PROKOP

7 PARK AVENUE FINANCIAL

Canadian Business Financing !

We finance the little guy ! P.S. We finance the big guys too!


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