YOU’RE LOOKING FOR A GOVERNMENT SMALL BUSINESS LOAN – THE BIL / CSBF PROGRAM WORKS!
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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?
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Government Loans in Canada? The Canada Small Business loan program is an ongoing major initiative by the Canadian Federal government to provide capital financing to new and existing businesses that meet the criteria of the program.
The program is very popular in Canada, primarily because it a business loan that the business owner may not have been able to achieve elsewhere.
MANY BUSINESS OWNERS ARE NOT EVEN AWARE OF THE CANADA SMALL BUSINESS FINANCING PROGRAM!
Many business owners and financial managers either aren't aware of the program or, as is more often the case, don't understand the requirements of the program and how to ensure proper approval in a timely manner. Naturally, rightfully or wrongfully so, there exists a perception that any government type funding program is extremely paperwork and administratively burdening to the business.
4 KEY ELEMENTS OF CANADA GOVERNMENT LOANS YOU NEED TO KNOW
There are several key basics that allow a business to ensure that they are in fact qualified to pursue the program. Those basics are as follows:
1. The company must be a private corporation - public firms are not eligible
2. The company must be under 10 Million dollars in revenue
3. The loan must ' flow-through' a registered administrator of the program - In Canada, this is typically a chartered bank - this is one of the key perceptions of the program, in that the banks ' administer ' the program, but they don't own it
4. Only three major asset classes are covered under financing in the program - they are as follows: Equipment, Leasehold Improvements, and Real Estate - It's those three asset categories that will hopefully allow your business to grow its products and services.
The government, as we have shown, doesn't lend the funds, but it guarantees the funds to the bank Almost every type of business in Canada can qualify for the loan program - and we note the interest rate on the program is very attractive based on this type of loan for earlier stage companies, some of which are startups or even franchises.
The challenge of course, as always, is ' How does my firm get approved?!'
HOW DO YOU QUALIFY FOR A GOVERNMENT LOAN FROM A SPONSORING FINANCIAL INSTITUTION / BANK/ CREDIT UNION?
If a business owner or manager feels they are not capable of providing a proper submission to the bank it is highly recommended that they used the services of a trusted financing advisor or intermediary.
HAVE A PROPER FINANCING PACKAGE IN PLACE!
At 7 Park Avenue FInancial we can't overemphasize that for Canadian companies the key to dealing with the government and the bank is that it is critically important to have all the necessary paperwork in a properly submitted and, hopefully, professional package.
What does that ' paperwork ' include? Companies should ensure the package reflects the current financial position of the company, a proper business plan and or executive summary, and miscellaneous personal data surrounding the bank and government requirements - i.e. statement of net worth, proof of no tax arrears, etc. At 7 Park Avenue Finacial we prepare business plans and cash flow projections from clients that meet and exceed the lender requirements of banks and commercial lenders - and at a reasonable cost!
DEMONSTRATE YOUR USE OF FUNDS
Most importantly is the need to position a proper purpose of the loan re dollars, timing, use of funds, etc. On occasion, it might be appropriate to offer up other guarantors or additional collateral, but in general, this is not required.
Most small businesses owners don't realize the true benefit of doing everything once, the right way! In lending and loan approval that is important. You can re-submit and renegotiate, but that is not an optimal strategy for business financing success.
In summary, the bottom line is ' do it once, right '. Looking for expertise and assistance? Seek a trusted, credible and experienced business financing advisor with credentials in this area.
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