YOUR COMPANY IS LOOKING FOR THE GOV’T BUSINESS LOAN!
FINANCING SOLUTIONS FOR SMALL BUSINESSES IN CANADA
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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 - firstname.lastname@example.org
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
SBL loans. It's the govt loan for business in Canada if your firm has under 5 Million dollars in revenue or is a start-up. Yes, we said startup! SBL is the acronym for what we lay people call the government small business loan.
WHO USES THE SBL LOAN
So why does this method of financing have the potential to deliver for your firm or start up business? The fact of the matter is the SBL loan has helped close to 8,000 businesses in Canada every year, to the tune of several billion dollars. In many ways, it’s the ' go-to ‘to purchase and finance machinery, furniture, fixtures, and leasehold improvements. Included in that category are your computer and application software needs also.
WHO IS IN CHARGE OF AND SPONSORS AND ADMINISTERS SBL LOANS IN CANADA
We forgive clients who think that for some reason that they will be dealing directly with ' government ‘, which, rightly or wrongly has all sorts of connotations of red tape, delay, forms, etc. Nothing could be farther from the truth. Although the program is regulated and mandated by INDUSTRY CANADA in Ottawa the day-to-day reality is that the SBL'S are in fact delivered daily in your own community via a financial institution such as chartered banks or business oriented credit unions which, shall we say ' run' the program for the government.
So if you in fact thought you would have the pleasure of meeting with the government for your loan we're going to have to disappoint you. It's much easier than that. Our own personal gripe with this is that each Canadian chartered bank, in our opinion, has a little different ' spin ' on
8 THINGS YOU NEED TO KNOW ABOUT THE GOVERNMENT OF CANADA SMALL BUSINESS FINANCING PROGRAM
We're the first to admit that you are very mistaken if you are looking for the proverbial ' easy money '. That is not the case. Although the actual deliverables of the loan are very attractive:
5 -7 year terms
Low competitive interest rates - (3 over prime)
No early repayment penalties
Nominal 25% Personal Guarantee
You don't necessarily need to be incorporated - partnerships and proprietorships ok!
Your opening balance sheet must be constructed to meet a proper debt /equity and current ratio
350k borrowing cap
Some relevant business experience
5 QUALIFICATIONS OF GOVERNMENT SMALL BUSINESS LOANS
We can categorically call out that this is not ' easy money'. However, are the qualifications stringent or difficult? We don't think so. They are:
- You must be legally allowed to borrow in Canada
- You must have a reasonable personal credit history
- You must have a business premises lease for your company
- You need to have a minimum permanent 10% down payment/equity in the financing desired
- Strongly recommended/required that you have a business plan/cash flow forecast for the business
In your business plan and financial forecast, you need to pay attention to the fact that cash flows from the business will be able to retire the loan properly. At 7 Park Avenue Financial we prepare business plans that meet and exceed the requirements of business lenders.
It's strongly recommended that your opening line NOT be: We don’t have the money now, but if we do in fact get approved we'll repay you from sales ...'! . AGAIN, not recommended!
As a business owner, you have the ability to make the whole process as complicated or easy as you choose. A better idea? Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can ensure the govt loan for business, the 'SBL ' works for your Canadian business.
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