YOUR COMPANY IS LOOKING FOR A GOVERNMENT BUSINESS LOAN – THE ‘SBL'!
Financing For New & 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
It shouldn't be, but it is. You are probably eligible for government loans for new business in Canada. The term many people use for this financing is the ' SBL LOAN '. Oh, by the way, although thousands of business owners and entrepreneurs use the program for new or ' start-up ' businesses you can still be an established business and use the program. Essentially the only rule here is that your business must be under $5,000,000.00 in revenue/sales.
ARE THE BANKS FINANCING THE SME SECTOR OF THE CANADIAN ECONOMY?
In talking to clients all day everyday one thing is clear, whether its reality or perception the general feeling is that Canada’s chartered banks aren’t doing cartwheels when it comes to being interested in business financing in the SME sector. Those certainly aren't the type of bankers we're hanging out with, so we suppose you're just handing out with the wrong crowd!
CANADIAN BANKS AND SMALL BUSINESS LOANS
Experts offer up several reasons re the bank lending scenario - reasons given include small business loans cant be packaged and sold like mortgages, but still require a lot of work, admin, underwriting, etc Many people also offer up that small business loans aren't profitable. Who knows?
Rather than weigh in the eternal discussion of bank lending to business in Canada let's focus on the benefits of the SBL program. I guess you could say we're staying positive!
WHAT CAN BE FINANCED UNDER THE CANADA SMALL BUSINESS FINANCING PROGRAM
The focus around government loans for new business is simply serving the purpose of addressing your financing needs for two asset categories - equipment and leaseholds. (Real estate is allowed also -however the program just doesn't seem to be used much in this regard).
One of the key ' misunderstandings ' around the SBL loan is that isn’t a cash loan or a working capital loan and that it can be used to finance receivables and inventory, or goodwill, or franchise fees. Not the case. End of story.
CREDIT REQUIREMENTS UNDER THE SBL LOAN PROGRAM
It's important for the Canadian entrepreneur to understand that because the program is SME based that the owner/owners must have a reasonable personal credit history. By that, in Canada, we mean a credit bureau score of 650+.
There are reasons why you wouldn’t be approved for an SBL loan in Canada. Your greatest chances of success are when you have a solid business plan or executive summary, as well as a cash flow that represents how you are going to generate profits and cash flow. We don’t recommend showing that you plan to lose money or use cash, not generate it! Some do that, we don't!
Many business owners we meet can't explain or articulate their business, how they make money and key issues in your industry.
KEY BENEFITS OF THE GOVERNMENT OF CANADA GUARANTEED LOAN PROGRAM
Back to those key benefits of government loans for new business:
They include:
5-7 year amortization terms
Competitive interest rates - currently 3% over prime
Low personal guarantee (25% of your loan amount)
Repayment without penalty
CONCLUSION
Getting approved for an SBL loan is clearly a combination of art and science - we've shared a lot of the ' science '. Seeking an experienced, credible and trusted Canadian business financing advisor will help you match that science with the art of expertise.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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