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OVERVIEW – Information on the govt guaranteed small business loan in Canada. Navigating the application process smoothly with this information
A Govt guaranteed small business loan in Canada is probably the ultimate in what we could call a ' crossover' financing. Why? It delivers all the benefits (and more) of traditional term loans and in many ways is more accessible for entrepreneurs and existing business owners. Let's dig in.
Another given in federal small business loan financing is also the fact that your ability to apply properly will always determine the amount and timing of your approval. Unlike many other types of business financing in Canada ' SBL ' loans can be adjudicated in only a few days if a proper application package is done. And by the way, there’s lots of help out there to do that work for you at no or minimum cost.
What then are the components of a successful small business loan financing under the ' CANADIAN SMALL BUSINESS FINANCING ' aka the 'CSBF ' Program? Knowing where to go is a good start, and it commences by understanding that the government actually has nothing to do with the program on a day to day basis, they assume the majority of the risk for the loan and your bank does the rest.
Planning in advance is key to success in ' SBL’ loans financing. Your primary document is a business plan, or at a minimum a strong executive summary. There is only one goal here - to ensure you properly lay out why the loan is a legitimate and sound investment under the program.
That is achieved by properly presenting the business in terms of:
Industry overview
Your management or industry expertise
Competitive conditions
Proper opening balance sheet and cash flow positioning
It is also key to lay out clearly the exact use of funds - since the program only finances two asset categories, equipment and leaseholds, its critical to show the proper description and use of the funds. Many franchises are financed under the program under all the same criteria.
In certain circumstances you will have a challenge in loan approval if you don't properly demonstrate management depth and experience related to your project. An example might be the opening or purchase or a restaurant, an industry with a high default rate, so mgmt expertise is clearly desired.
While the majority of businesses that apply for government loans are incorporated its critical to note that it's not 100% necessary, but if you're focused on a real business as opposed to a hobby incorporating is clearly the way to go in our opinion.
If you are looking to explore the benefits of a government backed loan in Canada 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 your application needs.
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 GUARANTEED LOAN EXPERTISE
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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
