YOUR COMPANY IS LOOKING FOR GOVERNMENT GUARANTEED
LOANS IN CANADA!
CANADA SMALL BUSINESS FINANCING FOR SMALL BUSINESSES
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Government guaranteed loans in Canada. What Canadian small business owner wouldn't want any ' inside scoop ' on anything to do with the government and business.
WHERE DOES THE GOVERNMENT FIT IN REGARDING THE PROGRAM?
The reality is that the Canadian business owner and financial manager has no real direct involvement of any sort with the govt on this program that he or she still seems to have a lot of problem in .. Connecting the dots... for financing success. We're quite sure we've got clarity, so let’s dig in.
THE SMALL BUSINESS GOVERNMENT LOAN PROGRAM IS OFTEN THE BEST SOLUTION FOR SMALL BUSINESS LOANS
For a certain type of borrowing in the Canadian start-up and SME sector in Canada, there is no better option than what ' main street ' calls the 'SBL' loan program. While choosing the right bank/banker to move your loan through is a challenge it's still a great vehicle to put equipment and leasehold assets that you need on the right footing - inside your business!
NAVIGATING THE APPLICATION PROCESS WITH THE RIGHT ASSISTANCE
While the perception might be that it’s difficult to achieve this financing you'll be surprised to hear that you can navigate the program with relative simplicity - if you have the right documentation and know what constitutes approval criteria. That's our job we suppose! At 7 Park Avenue Financial we prepare business plans and cash flow projections for our clients that meet and exceed the requirements of all banks and commercial lenders.
COMMERCIAL BANKING IN CANADA IS CHALLENGING FOR STARTUPS
Commercial banking in Canada many times (in spite of those TV commercials!) does not lend itself to start-up or leasehold financing. That’s where the small business government-guaranteed loan comes in - it works specifically only in those areas. The right financial institution is key, as the program is offered by banks and in some cases a credit union.
HERE ARE THE DETAILS FOR THE SBL LOAN
The quick recap is as follows - maximum loan amount size = $ 1,000,000.0O - items financed are only equipment, leaseholds, and real estate. We'll quickly add that not many real estate deals are done under the program because in many ways it doesn’t make sense -at the same time, we'll add that computers and application software are in that ' equipment ' category that we referenced. So a great way to acquire some technology. Companies applying for the loan should have less than 10 Million dollars in sales, which is the cap under the program for revenue size for applicants
We are often amazed about why there is confusion under this government of Canada program because the reality is that the ' basic drill ' has not changed. We think it’s because the general commercial borrowing environment has changed a lot more than the program - i.e. tougher!
4 THINGS THAT YOUR LOAN MIGHT BE DECLINED
So how can the business owner improve the odds of getting approved? A good way to provide that answer is to advise why you will be declined. You may well be declined for the following reasons:
Poor personal credit history
No business plan or cash flow
Unable to produce a premises lease that matches the term of your loan request
Inability to match the permanent 10% down payment/equity required by the program.
MORE KEY DETAILS OF THE CANADA BIL/CSBF PROGRAM
We advise clients that a proper loan proposal meeting the basic criteria has a very strong chance of approval - and with rates, terms, structures, limited personal guarantees etc. all being excellent every business owner should at least consider the program. A small registration fee is due when the loan is approved and funded. The interest rate on the program is very competitive and it's important to note this is not a cash loan or a working capital loan/line of credit. The program finances 3 categories of assets :
Equipment
Leasehold Improvements
Real Estate
CONCLUSION
As we said, no government involvement at all (they simply guarantee your loan to the bank) and connecting the loan application dots is a lot simpler than you thought! Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your SBL small business loan
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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