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Canadian Small Business Financing
If you are running a small business, a time might come when you may need to apply for Canadian small business financing, either to get the operating capital to get things started or to finance growth and expansion. It may be difficult to know who to turn to when this happens. Whether it is a bank, or a friend, the lender will have similar expectations. To increase your odds of obtaining a successful small business loan, you need to be prepared to meet those expectations.
One of the hardest things for small businesses to do is find the financing they need, especially if it is for a new business. You may try to seek assistance from family or friends but this resource can dry up quickly and more traditional sources of Canadian small business financing (such as venture capitalists and banks) are reluctant to finance small businesses, and even more reluctant to finance startups.
Collateral usually needs to be put up in the event of a loan from an institution. This collateral is usually in the form of a tangible asset, such as a building, personal property, or accounts receivables. However, many small businesses who have excellent business models do not have the tangible assets to put up for a loan. Some institutes offer Canadian small business financing backed on intangible assets, such as government funding. For example, North Innovation Fund aims to provide Canadian small business SR&ED financing, backed on forthcoming SR&ED payments from the federal government.