An Important Finance Solution You Have Never Heard Of?
OVERVIEW – . Information on government small business financing in Canada . The SBL loan is both misunderstood and underutilized by many companies who are looking for finance solutions – start ups and franchises included
Government small business financing . The SBL loan program might well be one of the best business financing solutions that many Canadian business owners, managers and start ups have... are you ready... not even heard of.
So what is in fact SBL loan power, and what might some of the reasons be that you aren't familiar with the program? Let's dig in!
We might be a little biased because we work with the program all the time, but top experts also agree that the SBL government small business financing program is one of the best things the good folks at the government actually do for the SME sector. The ' SME ' definition means different things to different people - so we should clarify that in the context of SBL loans the actual size you your company, from a sales/revenue perspective, must be less than 5 Million dollars.
We're not 100% sure that the program helps a smaller business become a huge business, but it sure helps when financing is a challenge. A lot of businesses in a variety of industries, including franchises by the way are finance via the SBL loan.
Party of the mystery
of the govt small business financing program is that there is no government for you to deal with! That is because all you have to do is visit, on your own, or with an experienced advisor a banker that is familiar and knows how to ' execute' on the program. Want to know a secret? In our experience only a smaller portion of business bankers like and have knowledge of the program.In the last year Canadian chartered banks in Canada would have approved almost 8000 loans under the program, for billions of dollars - and there is no reason you should not be ' on the program'!
Business people are always thinking about personal guarantees, and in the course of Canadian business financing, unless you're a huge corporation that is doing incredibly well, personal guarantees are in fact required. But here's the good news, under the SBL program only a 25% guarantee is required. And by the way, you aren't putting up personal collateral, or having liens placed against your home - it’s simply a ' promise to pay ' without additional collateral being demanded.
The two parties to SBL's are simply you and the bank. The government, via INDUSTRY CANADA, guarantees a large amount of the loan to the bank
So what in fact is needed to properly get approved for the funding you need? It's not a long list - we're focusing on a business plan or executive summary, a proper cash flow forecast, a current personal net worth statement of the borrower, and an itemized list of what you wish to finance.
It's important to note that the SBL loan only finances equipment and leasehold improvements and real estate. This is not a cash flow, inventory or receivable loan. Business owners / borrowers should be able to demonstrate that they have reasonable personal credit.
Don't believe all the myths or negative things you hear about government financing via an 'SBL'. And if you don't want to ' slow down ' the process seek out and speak to a trusted, credible and experienced Canadian business financing advisor
who can assist you with SBL loan power! It just might be a financial solution you never heard of!
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 = SBL LOAN EXPERTISE
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
Stan Prokop
