Our firm gives Canadian small business loans, and helps you get access to working capital so you can run your business. We have a SIMPLE application process, which takes a few minutes ONLY. The funds are available for you to use in just 24 hours. Delancey Street is the ONLY option, for business owners who want to grow their business without the headache of a complicated application and qualification process.
Getting a small business loan is a tough job. Canadian banks are conservative, and start-up venture funds are very risk adverse. Banks aren’t supposed to give away money inherently; they do a lot of due diligence, and want to PRESERVE capital. It’s not unfair to say, banks prefer lending money to people who don’t need it, and can prove they don’t need it.
There are many small business financing programs available to help you. Business loans are a type of debt incurred by a business to grow. The lender is usually a corporation, or the government, who is giving you a sum of money. You are obligated to pay back the money, with interest, in addition to being bound by other conditions.
What are the different types of small business loans?
Loans can be unsecured or secured: Business loans can be secured against collateral, or assets. Collateral can be property, receivables, etc. Secured loans are usually done when the term is longer, or the amount being borrowed is very high. They have lower interest rates, and have a long repayment period. Unsecured loans don’t require an asset or collateral. They do require a high credit score, and a higher interest rate. There are many important factors to consider. These types of loans are good for credit card purchases, education, and more.
The term or length of the business loan in Canada, can be either short or long. Short term business loans are usually paid back within a few months. Most short term small business loans are for $100,000 or less. These are great for things like inventory, accounts payable, or finishing up a project.
Canada Small Business Financing Program
This is a program by the government. It makes it easier for small businesses who needs loans, from financial institutions. It shares the risk with lenders. Loans can be used for any of the following costs:
The goal of this federal program is to make it easier for smaller businesses to get financing. Small businesses, or startups, in Canada with gross annual revenue of $10 million or less are eligible.
How much is available: There is a maximum of $1,000,000 for any one borrower. No more than $350,000 can be used for purchasing leasehold improvements or improving leased property, and/or purchasing/improving new/used equipment.