Looking for a business loan but can’t get one from the bank? Maybe finding a private lending can help.
There are thousands of fantastic business ideas floating around Canada each and every year, but many of them don’t come to fruition simply because people may have a hard time acquiring a loan. Most businesses need startup money to get off the ground and this means you may have to find somebody willing to fund you. Some entrepreneurs have enough money in the bank to fund themselves, but that’s not always the case with others. This leads to many Canadians mortgaging or remortgaging their homes for start-up capital, or using their possessions and/or property as collateral.
Some business loans come courtesy of friends and family as they’re often willing to help out if they believe in the idea. Other Canadians may turn to a line of credit from their bank to help them get started. This is a good option since there’s almost always some unexpected expenses along the way. It’s a good idea to prepare a line of credit before getting serious about your business as this is an ideal way to access money for just about anything life may throw at you. If you have a good credit rating and relationship with your bank, you’ll find it a lot easier to acquire a line of credit.
There are also still some banks and traditional types of lending institutions out there such as credit unions that may offer you a business loan. However, you need to be well prepared when applying for a business loan. You’ll need to have a solid business plan in place and have an effective loan presentation ready. In addition, you can try the Business Development Bank of Canada (BDC) as the organization specializes in supporting businesses across the country by providing them with startup loans.
There are several government and other business-related organizations which provide assistance to Canadian businesses to help the economy grow. These institutions sometimes offer startup loans or other types of financial assistance. One of these is known as Futurpreneur Canada which is a popular non-profit group which provides support and financing young entrepreneurs who are between the ages of 18 and 39. There are also government and women’s organizations which focus on helping women succeed in business. Each Canadian province and territory has something in place to help out budding entrepreneurs.
Another popular source of business loans are private lenders, venture capitalists, and angel investors. Most private lenders are specialists who are used to high-risk ventures and are willing to fund projects which the banks turn down. There are also businesses that are willing to lend money based on personal assets as collateral rather than focusing on your financial history and/or credit score. These companies often lend money to those who want to use things such as precious metals, jewelry, luxury watches and/or diamonds as collateral. They may even be willing to lend money if you have accounts receivable from financially-strong customers. These can be ideal solutions to new business people whose wealth is tied up in their assets.
If you’re interested in a private business loan please feel free to contact our team of professionals at Mortgagemeister.com. We’ll be glad to discuss all of your private funding options. These could be startup loans or money to purchase new equipment or inventory to help grow your business etc. We’ll help connect you with our network of private lenders to help fund your business needs, so long as you have equity available in your home.