Small Business Government Loans In Canada : The Financing & Funding Option You Should Consider

When Do Gov’t Guaranteed Small Business Loans Make Sense ? Probably Right About Now!

OVERVIEW – Information on small business government loans in Canada . A financing and funding option for your consideration

Small business government loans in Canada are a solid consideration for business owners/entrepreneurs. They typically best suit start ups, new firms, small firms, and growing firms in the SME (small to medium enterprise) sector. Why and, more importantly how does the government provide this financing, and are you eligible?

Although understood by some, but not all it's Canadian banks that actually are the delivery vehicle for small business loan financing. How then is the government involved, ask our clients? The answer - they guarantee a large part of the loan on your behalf, to the banks. A solid idea!

What we have observed over the years is that while the program is cast in stone as far as the govt is concerned the ' real world ' (that’s the one we toil in daily!) tells us that some practices and requirements certainly vary between our different chartered banks.

That's a hint by the way that you might benefit from an experienced advisor in this program!








So how do you receive the actual funds and what can they be used for? In Canada the program covers equipment, leasehold improvements, and even real estate. Note therefore - this is not a cash flow loan or working capital facility. The loan cannot be used for inventory purchases or consolidation of existing debt. That's important to know.

The loan is always structured as a term loan with fixed monthly payments, and by the way loan prepayment privileges are very generous.

Now that we have established who you are in fact approaching for govt loan financing it's critical to understand the information that will satisfy the criteria of the loan, often called the ' SBL ' loans. You're well armed if you can deliver on the following:

Business plan

Cash Flow forecast

Information on owner business background and personal financial credit history

Information on what you wish to finance - typically in the form of quotes from equipment suppliers or contractors in the case of leaseholds

Larger businesses unfortunately cannot apply, but the current threshold is 10M and under in annual revenue. We're quite sure that covers thousands of firms looking for funding... Typical loan terms are between 3 and 7 years. (The program actually specifies an amortization term of ten years to qualified candidates)

Cost ? Rates are very competitive and can be fixed or floating based upon the needs of the borrower.
If this type of business funding makes sense for your business seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can make the funding under the Govt guaranteed business loan possible .


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 - 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

Government Loans In Canada : A Fool Proof Formula For The SBL Small Business Loan ?

How Long To Get A Govt Business Loan? Not As Long As You Think


OVERVIEW – Information on government loans in Canada. What Does It Take To Get Approved For A ‘ SBL ‘ Small Business Loan . Tips for Success





Government loans in Canada , specifically the ' SBL Small business Loan ' program often seems ' unattainable' to clients we meet who don't understand the program. So if there is a key, or in our words, a ' fool proof ' formula for success in financing here its understanding eligibility. Let's dig in.

We feel that because the program is so straight forward the only reason you can not be successful with such financing is simply because you didn’t know if you or your firm/project qualified. So let's review some of those key qualifiers.

The true benefit of the program is of course the ' government guarantee ' that the Canadian government loans come with. So your ability to put forth a solid proposal hinges on ensuring that guarantee is available.

That goes for every use of the program, which predominantly finances assets and leaseholds, and in some cases actual real estate. Franchisees contemplating entry into the Canadian franchise financing industry also make maximum use of the program.

It's also critical to understand ' sizing' of the program. This loan program maxes out at $ 350,000.00, and finances 90% of all items up to and including this cap. That means two things of course:

Any financing you require over 350k must be met or arranged by the owner/owners

You will need a minimum personal equity investment, aka the ' down payment' of a minimum of 10%. You should ensure that you should be able to meet two other key criteria of the program - a debt to equity ratio that is reasonable, and a positive ' current ratio ‘. That item simply signifies your need to show that a combination of cash, inventory and prepaids is able to meet 1st year debt repayments.

A great way to look at your potential success in Small business loan financing is simply to walk a mile in your banker/lenders shoes. That's because unlike your suppliers that supply you with goods and services your financing sources is lending with the sole expectation of loan repayment, with interest income as their only profit.

Here's where a solid business plan and cash flow kick in, as your ability to demonstrate realistic cash flow repayment becomes a key critical element in the SBL loan formula approval. That repayment is going to come from sales revenue and profits, receivables collections, sale of assets, etc.

Businesses that aren't cash flow based should also be able to, within a reasonable amount of time, utilize business credit lines that help offset revenue bulges versus cash collections.

While many clients we talk to at first believe an SBL loan process takes weeks or months, the reality is that a properly prepared proposal should only take a matter of days for adjudication. The key? A properly prepared package that consists on owner information, business plan, cash flow, and financing requirements for assets and leaseholds to be financed.

The bottom line - the winning formula in government SBL loans really revolves around understanding eligibility and providing a tight package of the basic requirements which certainly are NOT onerous. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can fast track your SBL small business loan with maximum chances of success and minimum expectation in timing!



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 = ‘ SBL ‘ Govt Business Loan 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

How Do Small Business Government Loans Work For Financing A Company In Canada?

Here’s some essential info on Canadian SBL loans


OVERVIEW – Information on small business government loans in Canada . How does this financing work and who qualifies?


If you're a start up business in Canada, or, if you're already in business and need additional financing one alternative, and it’s a great one, is Small Business Government Loans. But how do they work and what exactly are the benefits? And the government? Let's explain!

If there is one government solution and program we can believe in we've always thought that the BIL/CSBF program (aka ' the SBL Loan ‘) is the one. Whether you're a start up or a small business already in motion financing assistance is available through these loans. Stat's show that over 8000 businesses a year apply for and qualify for this business finance, and there isn't really a reason why you shouldn’t be one of them .

In fact you can even be a proprietorship, not a legal company to qualify, which many find surprising. In the U.S. this program is commonly called the SBA program and it has a lot more breadth. But we're not complaining because low rate financing with flexible rates, terms and structures and limited personal guarantees is nothing you'll find us complaining about.

Probably one of the first questions we get from clients, perhaps its more of a concern is their concern as to government red tape, etc. That concern is one that needn't exist, because the government, via Industry Canada charters’ our local banks to facilitate the program for them. And because they like you so much, the good folks in Ottawa actually guarantee most of your loan to the banks. Well, maybe that's over personalizing it a bit! But the reality is that the loan is guaranteed to the banks, which for you is a good thing!

What can you use the funds for? That's where clients are looking for some real clarity. And here, unfortunately is where misinformation abounds!

Small business government loans can be used for real estate, equipment, leaseholds, computers, software, and fixed assets for your company or business. They can not be used for working capital, inventory, goodwill, franchisee fees, etc. We say ' franchise fees' because thousands of franchises in Canada are financed by this program. And you company qualifies if you are a start up or have revenues under 5 Million dollars.

We would never be accused of saying the SBL is ' easy money ‘. It's not, but its available, flexible, and the application process is as straight forward, maybe even more so than any other business financing . All you have to do is ensure you have a proper loan submission that includes a business plan and cash flow forecast along with the other back up info that you would associate with other business loan applications.

So, SBL loans. Here's one case where ' Small ‘ is good , and by the way the 350k cap is hardly an amount of financing that can be considered that small ! Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can put you on the fast track to some major financing for your small or new business.

7 PARK AVENUE FINANCIAL
CANADIAN 'SBL' LOAN 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/small_business_government_loans_financing_canada.html