Business Loans in Canada: Presented by Business Loans Canada
Business Loans in Canada:
Presented by Business Loans Canada
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Are you starting a business? Do you already operate one, but are considering expanding it? Or are you looking to simply add more resources to your established business?
No matter what scenario you happen to be in, starting, running, and growing a business takes money. And for most entrepreneurs, the amount of money needed is not always readily available.
That’s precisely why business loans exist. The adage is largely true: “it takes money to make money.” Without adequate funds, it can be difficult to succeed. But just because you don’t have access to immediate funds right now doesn’t mean your business has to suffer.
With a business loan, you gain access to the capital required to either start, operate, or grow your business. These types of loans are specifically dedicated to supplying business owners with money for business purposes. Like all other loan types, business loans will mean you’ll be taking on some debt, which will eventually need to be repaid, plus interest. But the help that these loans can provide you with can be indispensable and invaluable.
Whatever phase of your entrepreneurial journey that you may be in, a business loan can be exactly what your business needs to truly thrive.
Choosing The Right Business Loan
There are variations of business loans that are available, including the following:
Small Business Loans
For entrepreneurs who own and run small or medium-sized businesses, a small business loan can help increase cash flow and take your business to the next level. Lenders that offer small business funding often specialize in specific industries and focus on helping small business owners thrive.
Private Business Loans
If your current credit profile isn’t sufficient enough to get approved by a conventional lender, you may seek out a business loan from a private lender who will take other factors into consideration before you are approved, such as your assets and most recent payment history.
Online Business Loans
Online business loans can be applied for and approved entirely online without the need to visit a lender in person. They are often a good option for business owners who are having trouble getting approved for funding from their bank
A commercial mortgage is a loan that a business will take out to buy commercial property or to expand their existing property. The money borrowed will be secured against the property bought. Meaning, the property will be used as collateral if the borrower defaults on their payments.
A Business Line of Credit
A business line of credit is a revolving loan that comes in two forms: secured and unsecured. It works a lot like a credit card but with better features. Business lines of credit typically have lower interest rates and higher credit limits. Moreover, a business line of credit can be used for cash advances.
Equipment financing is a loan that is used to acquire the equipment you need to run your business. For the lender’s protection, they may require a lien on the equipment to use as collateral. Meaning, if you default on your payments the lender has the authority to seize your equipment to pay off the loan.
A commission advance is a financial service where a real estate agent can sell a future commission in exchange for immediate cash. The service provider is paid with a percentage of the commission.
Inventory financing is a secured loan that comes as a line of credit or a short-term loan and is designed to help businesses purchase inventory from their suppliers. All the inventory you buy using the loan will be held as collateral, so if you default on your payments the lender will have the right to seize your products to pay off the loan.
Merchant Cash Advances
A merchant cash advance is a sum of cash a lender will provide you in exchange for your business’s expected future sales.
Bank Saying NO?
Try an Alternative Solution in Canada
Today’s funding requirements have become stricter. More banks and Credit Unions are turning small business owners down even when they have ideal credit. Business owners are being rejected and losing out on solid opportunities because they can’t secure the business funds and finance options they need. Today’s bank focuses on candidates—those with good credit files, high beacon scores and excellent cash flow. Unfortunately, this doesn’t apply to most consumers and business owners. But, SharpShooter Funding can help approve and fund your business!
Do you need information on consolidation your business credit card debt?
Looking to expand your Canadian Small Business with new Working Capital?
Small Business Loans for People with Bad Personal Credit
Preparing To Apply For a Business Loan
The type of financing that you choose will depend on the exact phase you’re in. Before you decide on the perfect business loan for you, there are a number of considerations to make. Ask yourself the following questions before you make your final decision:
- How much money do you need?
- What do you need the money for?
- What stage of business are you at?
Comparing different lenders is also important. You should also ask yourself a few questions about the lenders themselves before you decide who you will ultimately work with:
- How much experience does the lender have in your industry?
- What do the online reviews say about the lender?
- What is the lender’s customer service like?
- Are you comfortable working with the lender?
Different loan products should also be compared to each other. In particular, the following elements should be assessed:
- Amount available from each lender
- Interest rate
Once you’ve asked all the right questions and gathered all the pertinent information you need, you will be in a better position to make the right decision about which type of business loan is best for you.
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When is it the Right Time To Apply For a Business Loan?
Considering the fact that you will be assuming a certain amount of debt when you take out a business loan, you want to make sure you are doing it for the right reasons. You’ll be responsible for making regular payments, and failure to do so can have a negative impact on your credit and financial profile.
That said, there are some sound reasons why you may want to take out a business loan, including the following:
Are you looking for a Bad Credit Canadian Business Loan?
A low credit score can potentially portray you as a high risk borrower, and will jeopardize your quest to land the extra funds you need. But the good news is that banks and other traditional lending institutions aren’t the only lenders who provide small business loans.