Know Why Government Loans Are Preferred So Much ? We Do !

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Make Government Business Loans Work For You

What is the best small business loan for Canadian business owners in the ' SME COMMERCIAL FINANCE ' sector in Canada. When it comes to lack of funding for start up or earlier stage companies already achieving revenues there is no doubt the government small business loan is a very viable solution .

Lack of funding in the earlier stages of a company's growth will always hurt long term business goals for sales and profits. Financing and execution of your business plans are of course as integral to the success of your company.

While many entrepreneurs focus on ' the bank ' for funding they typically cannot get all ( or even some ) of the business capital they need. Government in Canada recognized that a long time via Industry Canada the Canadian Small Business Financing Loan program. Some have written the program is the ' oxygen' for financing a business with government help.



There are some major key benefits to what we describe as the ' best small business loan ' in Canada. And by the way, small means under a million dollars , which in our books isn't that ' small '!

KEY FACTORS IN THE GOVERNMENT GUARANTEED BUSINESS LOAN

For a starter it is the government guaranteeing the majority of your business loan . That clearly eliminates a lot fo the collateral and reliance on personal financial information required by most ' traditional' lending institutions.

Down payments are always an issue for owners and the initial equity, or ' down payment ' you need to get the loan is modest indeed - typically in the 10-20% range.

Timing is everything in business, and if you're working with a proper Canadian Business Financing Advisor closing time on funding can be very quick in loan funding.

What does the Government small business loan finance ? That's a frequent question from clients here at 7 Park Avenue Financial . The answer:

Equipment

Leaseholds

Software

Real estate

Loans under the program are structured as term loans between 2-5 years from an amortization / length of loan perspective . Prepayment is not penalized !!


Steps To Be Successful With A Government Guaranteed Business Loan

A recent articles in Canada's major newspaper, the Globe & Mail, highlighted great ways to achieve success in government financing . That included ensuring what your business financing needs are, being pro-active in putting together a plan and request, and ensuring owners have reasonable credit history .

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of business finance solutions.



7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value added financing consultation for small and medium sized businesses in the area of cash flow , working capital , and debt financing .



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 100 Million $ of financing for Canadian corporations .

' 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

Confessions Of An SBL Government Loans Super Fan . The Canada Small Business Loan

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INFORMATION ON GOVERNMENT SMALL BUSINESS LOANS IN CANADA

SBL government loans . I guess you could call us a fan, even a super fan. The word fan comes from the root word ' fanatic ‘, denoting an ' enthusiastic devotee. So why is the Canada small business loan the recipient of our full support. Let's try and preach to some of the potential unconverted.

More and more businesses in Canada, new, and established, are seeking loans backed by the government. Talk about a great co-signer! And remember that we are talking about a loan, not a grant. We're always being asked about ' grant money’... free money in essence. We're sure it's out there somewhere, we just haven't found it, and we're equally believers in the ' there is no free lunch ' concept!

The SBL loan is a great choice for business when you're in a touch economy; it’s all about choosing the right lender under the program and ensuring you are aware of some basic rules and regulations that allow you to qualify for the program. We feel quite strongly that every Canadian business owner can actually do a great job of pre-qualifying themselves in advance.

Let's recap some of those basic qualifications. They include being a Canadian citizen or being eligible to legally borrow in Canada. That's just common sense. Although you only have to only guarantee 25% of the loan personally that comes with the understanding that you have a reasonable personal credit history. In Canada the credit bureaus work on a ‘scoring ' basis, and for purposes of SBL government loans you should at least have a score of 650.

The questions of rates and structures always comes up in connection with questions from clients. Interest rates are ultra competitive given that you business is either completely new, or has under 5 Million dollars in revenue (That’s the revenue cap under the program). Rates on the SBL small business loans are in the 3% over prime range and a small government fee can usually actually be added into the financing of the loan.

Any business financing application has strong elements of one thing - and that’s common sense questions. You should therefore be prepared to address some very basics, including a resume or bio on yourself, a description of your business, a cash flow repayment plan (that’s critical). Additionally some supporting documents are required, all of which in our opinion are again. very ' common sense ' oriented. They include a copy of your tax return, your incorporation data, a premises lease, etc.

It's a great idea to also have a clear idea of the financing you are requesting. The three categories of assets that can be financed under the program are equipment, leaseholds, and real estate. Unfortunately it’s not a cash loan per se, so there are no working capital or cash flow borrowings under the program. And by the way that’s a popular misconception.

We should also add that you need to inject a minimum of permanent equity, in effect your ' down payment ' of 10% of your total borrowing.

It’s strongly recommended that you investigate the power of the Canada small business SBL loan. You just might find you will become a super fan also! Speak to a trusted, credible and experienced
Canadian business financing advisor for help with this great program.








7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

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 100 Million $ of financing for Canadian corporations .

' 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

Are You Eligible For The Canadian Government Small Business Loan

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Information on the 'SBL ' - commonly know as the government small business loan. This program offers some of the best rates, terms and structures for small business financing needs in Canada

Many business owners in Canada in the SME sector aren't fully aware that they are already qualified to take advantage of the SBL loan program in Canada. The Government Small Business Loan is an initiative of the federal government in Canada that helps thousands ( in fact over 7000+ in 2010 ) of Canadian businesses to securing business financing on terms that rival those of the big boys when it comes to attractive rates, and structures.

There are many misconceptions about the program and that is why we feel quite sure that you may already qualify and probably just didn't know it! Let's examine some of these very basic and reasonable qualifications of the program, and let's help you maximize the benefits already utilized by thousands of firms just like yours.

'Government ' isn't necessarily the most popular word at any time when it comes to your day to day business. However, that's misconception number 1, simply that this loan program is in fact operated in the private sector, by Canadian banks, not the government directly. So where does the government come in then?, ask clients. Simply that they are in fact guaranteeing the majority of the loan. Actual funding is done through your bank.

The challenge we work through with on a daily basis is that not all banks or bank employees rather are always familiar with the details of the program. So many clients who are keenly interested in availing themselves of this financing in fact get mixed signals on how the program operates, its benefits, and mostly importantly, how to start the process and get approved quickly!

Let's cover off some of the basic facts. To be eligible for the program your Canadian business, either incorporated or a proprietorship, must have revenues not exceeding 5 Million dollars. Start ups are eligible for the program also.

Most Canadian business owners who start from scratch are keenly aware of the financial challenges that are faced when financing a start up, or a franchise. That's really the spirit of the Canadian government small business loan program... it's providing financing to businesses and business owners who otherwise might not be able to acquire the financing they need.

Owners of the business must have reasonable good credit... in terms of the credit bureau beacon score that all Canadians possess that score should be in the 650+ range. Contrary to the belief of some this is not financing for people with poor credit.

What does the SBL government small business loan finance? That's another area of what seems constant confusion when we talk to clients. In fact the program only finances equipment and leaseholds. Software by the way is included in the equipment category. We meet many clients that are under a major misconception on SBL's - namely that the financing is cash and working capital. It absolutely is not!

How can any business owner in Canada not want to take advantage of financing that can help build and grow their business? Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in being successful and unlocking the benefits of the government small business loan program. That's SBL for short!



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 13 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
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 '

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



















Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Article Source: http://EzineArticles.com/6596730

Buying And Financing A Business Purchase With An SBL Government Loan In Canada

Let Your Business Purchase Put You On The Road To Richistan !


OVERVIEW – Information on the buying and financing of a business purchase in Canada using a SBL government loan strategy. A Hands On How To!




At some point in time many business people have the opportunity to purchase a business in Canada. That’s buying a business, not starting one by the way!

But financing the business purchase, i.e. putting your transaction together is another story. Here's one great way to do it if you business fits some basic criteria, and it’s via the SBL government loan. Finally, some help from Ottawa, but we digress...


There are of course the obvious advantages to buying versus building a business. First of all it's easier to find if you know what you are looking for, and many of the challenges of starting a business are immediately eliminated when you have a turnkey operation already in place. Finding premises, buying and financing assets, and generating revenues with a sales / operating team are instantly removed. Not that we're making anything too easy.

Oh and buy the way when we think in turnkey, we often think franchises, and to make it perfectly clear our strategy today also covers existing franchises, or corporate stores owned by the franchisor .

Getting a clear look and quick access to the business financials, but no matter how good, or bad... those financials look it’s a case of also trying to understand the motivation of the seller. Things like a financial tool called the VTB... the vendor take back can often play a key role in our financing strategy today and the proverbial ' motivated seller ‘ is often ok with a vendor take back . (If not, he or she is probably willing to negotiate price a bit more?!)

When you utilize the government SBL business loan for a business financing strategy in Canada you need access to those financials. They will tell us what assets are in the business, and by the way, it’s difficult, if not impossible to finance a smaller concern when there is a huge ' goodwill ' component in the final purchase price.

Although the income statement is important in our financing strategy via the SBL loan it’s not the deal breaker. However clearly you do want to know that the business is generating sales, that’s growing sales, and profits. If not the business can still be financed, don't despair, but you better have an action plan in place for that missing sales and profit strategy!

Getting back to the balance sheet, that’s key today in our finance strategy of buying a business in Canada. Here's where the SBL government loan comes into place. That’s because it finances the current and fixed assets of the business, as well as existing leaseholds. Leaseholds?

Yes, the government loan financing via the BIL/CSBF program finances those three asset categories - fixed assets, receivables as a portion of the current assets, and leaseholds. A qualified appraisal of these is required and the SBL program finances a total of $350,000.00 of these assets. A down payment or equity injection by yourself, as well as perhaps our previously mentioned vendor take back can get you often pretty close to a 1/2 Million dollar financing for your business purchase.

So, is that a creative strategy? We think its closer to a common sense strategy, and one that comes with great rates, terms, and structures, including limited personal guarantees and flexible repayment options that include repayment without penalty.

Buying and financing that business purchase via the SBL loan is a solid way to become a Canadian entrepreneur. Speak to a trusted, credible and experienced Canadian business financing advisor to kick start your business purchase.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS PURCHASE FINANCING EXPERTISE














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/buying_business_financing_purchase_government_loan.html

Start Up To Established Company – Who Qualifies for The Canadian SBL Government Loan - A Great Business Loan For Your Firm

Everything You Need To Know Re: SBL Financing


Informatiion on the Canadian SBL government loan program . Who qualifies and how to successful utilize this financing for your start up or established business . Business Loans For Your Firm.



Government ... Business Financing ... those two terms shouldn’t raise fear and apprehension in the minds of our clients. But... guess what? They often do! And that means they might be unable to access the Canadian government loan. SBL loans are quite simply, in our opinion, the absolute best method of financing your start up or small business venture .And the word ' small ' is relative, as our program pertains to businesses with revenues under 5 Million dollars. That’s not chump change, right??!

Canadian business owners looking to either start a business or expand their current business spend a lot of time seeking financing to complement those two goals. Ironically the one entity they often think can't or won't help or assist them in fact is the only entity that is set up to absolutely help them. Why, because it's actually Canadian chartered banks that take the hand off from Industry Canada to approve and administer the BIL/CSBF program in Canada. We'll keep things simple and refer to it as the SBL loan!



So who qualifies for these loans, financing things such as equipment, leaseholds, software, etc? Canadian citizens or those legally allowed to borrow in Canada are eligible to receive such financing. Naturally you can not have defaulted on a loan in the past, and you must be up to date with your income tax filings and any balances owing Canada Revenue Agency. That makes sense , doesn't it - receiving an SBL loan from the government and being in good standing with them re your personal tax filings, etc.

As we said, it’s the banks and a few other select institutions that administer and fund the government loan program. Over 7000 businesses just like yours received funding in the 2010 timeframe as an example.

So do banks ' like ' the program and recommend or steer clients toward the program. We have got our own opinions on that. While the government guarantees the majority of the loan to the bank we find that many bankers aren’t either fully up to speed with the loan approval process... and, heaven forbid...they feel it is ' a lot of paperwork '. Good commercial and small business bankers in Canada ( yes , they exist, trust us on that one please ) view SBL loans as a way to help you achieve business financing for a start up or relatively new business when they otherwise might be constrained to help you within normal bank confines .

The government loan program caps out at 500,000.00 for real estate, and 350,000.00 for equipment, leaseholds, software, etc. Loans are pegged to 3% over the current Canadian prime rate. Each loan is adjudicated for approval under the exact guidelines of the program.

We spoke earlier of clients having a fear of properly dealing with government, a business financing process, etc. Can that be avoided? It sure can. Seek an expert such as a trusted, credible and experienced Canadian business financing advisor who can literally fast track you through the entire process within a matter of days, with your co operation of course. Unlock the power of SBL loans to realize your business potential.





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/government_loan_sbl_loans_start_up.html

5 Questions – 5 Answers On The Canadian Government Loan Small Business Program – SBL Funding

Financing With The Government Small Business Loan In Canada


Information on the Canada Government Small Business Loan Program – SBL Funding Helps Thousands Of Businesses Like Yours





The Canadian Small Business Loan Program, commonly called the SBL Loan provides funding for thousands (over 7000 firms in 2010) of Canadian businesses just like yours. The program has been in existence for many of years and yet still many Canadian business owners and financial managers like you still have sometimes not even heard of the program!

Contrary to popular opinion these loans do not require a tremendous amount of time or effort and you are not dealing with a faceless government employee, as some might think.

Industry Canada, which sponsors the program grants Canadian chartered banks the authority to underwrite and approve loans and financing under the program. If you qualify, and know what and how to do things, you can receive approval for the loan within 48 hours.

Given the current economic challenges in Canada it clearly is refreshing news that Canadian business owners, from start up to established firms can receive financing up to $ 500,000.00 under the program. The Canadian banks are chartered to look out for the programs interest of course, but at the end of the day don’t forget the main goal - facilitation your access to credit a capital that you might not otherwise secure.

There isn’t a day when we don't receive questions from clients about the program, everything from basic questions to issues that confuse the Canadian business owner about the program. Lets over off 5 of those questions, then consider yourself well informed about the SBL small business government loan program, funding on great terms, for your company.

Question 1- What type of loan is available? The answer to that is pretty simply, the program covers financing for real estate, equipment, leaseholds, computer software. What it doesn’t cover, which is typically what many clients are looking for, is funding of operating assets such as cash, inventory, and receivables. These assets are used to expand your business and provide financing at rates, terms and structures you might likewise not be able to achieve. Don’t forget this includes start ups also!
Question # 2 - Qualifications. The qualifications are simple. Business owners must have a decent personal credit history, a business address or location, a down payment of minimum 10% on assets financed, and a business plan that makes sense. Certain financial ratios must work re debt and opening working capital.

Third Question - Down payment, equity. The basic story is that you must have a minimum of 10% down on all financings, but to satisfy some of the bank guidelines you must have anywhere from 30% down to ensure opening working capital and debt to equity make sense for the custodians of the program .. The bank.

Questions # 4 - The approval process! How does it work?? The bottom line is that it’s not as complicated as you think. This is a great time to work with an experienced business advisor on ensuring you have a crisp plan that satisfied the program basics. Some standard business documentation back up - articles of incorporation, cash flow, owner net worth statement, etc should allow you to ensure that an approval is received in a matter of days. Not exactly what you associate with a government program... right?!

Final question - How does the Small business government loan program, i.e. SBL funding differ from normal financing. Its simple, the government is guaranteeing a huge portion of the loan to your bank. No personal collateral is required, and unlike most Canadian financing your personal guarantee is limited to only 25% of your financing. Terms are anywhere up to 7 years, and rates are comparable to what the big boys get.

The bottom line, the SBL program is probably a lot more user friendly than you think. If you work with a trusted, credible and experienced Canadian business financing advisor you can use this financing to meet the growth needs of your business, from start up to established firm.




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/small_business_program_government_loan_funding_sbl.html

A ‘ How To ‘ Primer On Canada’s Government Loan . SBL Small Business Financing Makes Sense

Industry Canada sponsors, but does not administer the SBL small business financing government loan program. Government initiatives are solid source of start up and growth capital for thousands of start up and medium sized firms in Canada. The government small business loan is suited perfectly to provide you a source of funding you might otherwise not be able to achieve.

We also might add that many clients approaching us for assistance and info on financing often ask about ' grants ‘, or info on Community Futures funds . These two programs are also a source of Canadian business financing, but not one we'll be discussing today.

First things first in our ' how to ‘... and that’s simply that Canadian business owners and financial managers need to understand the government is the guarantor of the loans, but not, we repeat ' not' the administrators of the ' SBL' (Small Business Loan) program. That clears up a lot of confusion for our clients, who often mistakenly perceive having to deal with the government on a loan as potentially being somewhat bureaucratic. That’s not the case.

So who does administer and run the program - you might have guessed by now that is our Canadian chartered banks, and some other miscellaneous institutions, but primarily the banks. Adding to the confusion is often the perception that the government crown owned business bank, commonly know as ' BDC ' offers the program. Would make sense right? Guess what, they don’t have anything to do with the program.

The basics of the program are simply that your firm can finance up to $ 500,000.00 under the government guarantee to the bank. (In actuality the government guarantees 90% and the bank assumes a 10% risk scenario) However, you need to understand the500k limit pertains only to real estate; typically the cap on the program is 350k.

What can be financed under the program? It's not as broad as you think. Items financed are essentially equipment, leaseholds, software, etc; the bottom line is assets and software .A major mis conception we often have to explain to clients is that cash and working capital is not part of the program.

Terms? They are great. Really great. Rates are only several points over bank prime , terms can be up to ten years, and oh yes, guarantees, only a limited guarantee is required by the business owner, you in fact are not required to co sign or guarantee all of the loan . We can categorically assure you that thousands of others business in Canada do have the owners personally signing for the full amount of the loan.

Pre payment? Although we find many business owners in Canada ask us about pre payment the reality is that most loans probably run to maturity. But if you did choose to pre pay this is one of the only business financings in Canada that you can pre pay without a penalty.

To qualify for the loan the business owner must have a reasonable personal credit history, some element of a down payment to cover the 10% which the bank is on the hook for, and of course a solid executive summary or business plan that is typical of any business financing request. These can be prepared efficiently for a low cost by a trusted , experienced and credible Canadian business financing advisor, who can steer you through the ' how to's ) of the Canadian government loan for small business financing . You'll want to investigate the SBL!




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 .Info re: Canadian business financing & contact details :

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

Navigate the Canada Small Business Government Loan - Successful SBL Financing

Navigate! The Dictionary defines the term as ' to walk or find ones way ‘. That's what we are going to do, make you a navigational expert on the ' SBL ‘, more commonly called the Canada small business loan . It’s also called ' the government loan ' and we will provide some clarity around why that is and is not necessarily the case!

Let's get down to basics. Your first questions probably is - ' what is the Canadian government doing in the loan and Canadian business financing area?! ) That's a valid question of course. Industry Canada is the department that runs the program. The program has been around for many years and is designed to encourage ' financial institutions ‘to provide small business loan financing that they otherwise might not be able to do.

So who are these financial institutions? For the most part we're talking about Canadian chartered banks, although some business oriented credit unions also underwrite the program. That is where a lot of the confusion around the program exists - namely that while the government sponsors and in fact created the program it is administered on a daily basis by Canadian banks.

Why would the banks participate in the program? For the very simple reason that the Canada small business government loan, aka ' SBL ' has Ottawa picking up 85% of the tab if a loan defaults.

When we look at all the questions clients have around the program a couple common themes consistently come up - they are key issues such as ' How much can we get “(that’s a very popular one!) as well as ' how does it work and what do I need to do to apply ?

Let's address the dollars in the SBL program. The magic number for the program is $ 350,000.00, but if you use it specifically for real estate the program actually can be up to $ 500,000.00.

Would any company or entrepreneur want to purchase real estate under the program? That may or may not be an attractive option - for example under the current terms of the program the monthly payment would be in the 7K per month range , so that would have to be weighed against other options .

So who uses the Canada small business loan, and why is it beneficial. The reality is that over 7 thousand firms used the SBL government loan last year alone, for financings approaching 1 Billion dollars. Funds for the program are geared toward two asset classes - equipment, and leaseholds. Your ability to finance leaseholds under the program is one of the best features of the program. as this asset class is very difficult to finance otherwise .

Most popular questions #2 about the program is simply ' how does it work - where do we apply ‘. This is where it falls apart for many entrepreneurs. They aren’t prepared, spend days, weeks, and yes months stumbling through the program, and are frustrated if they are declined. They are simply astounded when we tell them a simple clean proposal, done properly can get the financing approved in 48 hrs.

Not sure about navigating your own way around the program to both achieve maximum financing and of course approval? What then. Simple, speak to a trusted, credible and experienced Canadian business financing advisor who can help you navigate the waters of financing success for the government SBL loan program in Canada.
-


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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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