There are some Canadian tips which can really help you out, to get the funding for your business successfully. They will assist you that how you can increases the chances of getting the funding for your Small Business.
1. Contribute Financially
Assets are very important as they are required by you to contribute financially and also necessary for collateral for money lenders. Your financial contribution, if you are trying to get small business funding, some grants and business loans provider demand your own contribution too.
Even in starting a business, The Self Employment program as active in some provinces also needs the applicants to make their own contribution too.
Before you start your small business funding search, you should also know:
2. Age & Size Of The Business Matters
As you may know, that business funding for small business faces tough time then the established business to get the funding. If you applied for a loan then you are likely to pay them 1.5% above the prime rate.
if you asking for a small loan of less than $100,000, or if you have less than $500,000 (CFIB Research Report 2007). And it is also included in the report that you’ll have to pay higher interest rate if you have less than 20 employees or if you have less than ten years of business experience.
3. Small Business Funding On The Type Of Industry
You are in bad luck if you want business funding for business in the retail, service or hospitality sector, because money lenders perceive these businesses as a risk and because they may not get as much profit, in general sense there is nothing wrong with these businesses but just in the sense if you want business funding.
But financial, real estate, wholesale and agriculture sectors are in a good place to get your application approved (CFIB Research Report, November 2007).
4. You Are Your Business
Your financial history should be clean, and it should be carefully scrutinized before money lender. You may find that money lender is expecting you to sign the personal loan guarantee. If you have bad credit and you are lacking collateral, then it is unfavorable to you. So you should first repair your credit history and personal financial record then go for a small business funding.
But if your history is not good, because you are new immigrant, or younger or any other reason then your local Community Loan Fund may give you funding for small business.
5. Fortune Doesn’t Matters
Just don’t think that small businesses don’t get a huge success, many small business flourish then any well established businesses.
Brian Scudamore, started 1-800-GOT JUNK? With a single truck when he was a university student in 1989.
Susan Olivia Poole, fashioned first jolly jumper from broom handle, a cloth diaper, and a spring, and this became world wide seller.
And lastly, this thing will also help you.
"…the first rule of financing,” says Rick Spence, “is to get by on as little funding as you can because searching for capital can drain valuable time that may be better spent taking care of business"
So now you can start you search for small business funding, with keeping all these things in mind.
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