Unsecured Business Loans
Canadian Government Funding for businesses is not a myth. There is a lot of Government support for the new and existing businesses, sometimes up to almost a 100% from the project requirements. All you need to do is to know about these programs’ existence and the rules of how to apply and through which financial/Government institutions. Since 2006, our company has been bringing all of the necessary instruments noted about to the table in order to help our clients to obtain different unsecured business financing solutions and to achieve their business goals.
It is very important to understand the meaning of the unsecured business loans. The unsecured component is different than any other regular secured loan in a way that while getting the unsecured loan you are not putting your assets as a collateral and you are not registering the unsecured loan into your credit bureau. You are not limited to one business loan. If you have multiple businesses, you can get a separate unsecured loan for each business. These are the major differences between secured and unsecured financing that you need to be aware of in order to benefit from the maximum credit availability without mixing your personal and business credit sizes capacity.
Government Unsecured Loans
There are many Governments unsecured business loans available in Canada for businesses through certain Canadian banks/lenders. Our responsibility is to find the suitable program for client’s particular project, satisfy application rules and regulations, submit the application with an appropriate lender in Canada and achieve the application final approval, provided the client is fully transparent and cooperative with our team of experts. Our success rate so far with all of the Government loans related application, has been always a 100%, and that is because all our preliminary review and pre-approval system are in place for each and every application intake process which means we do not assign any application into our queue, unless we have checked a head of time that all major criteria for satisfaction can be achieved.
When someone starting a business, they always need to finance their assets and their working capital in their project. There are numerous Government loans offering to finance the asset portion of the project while the entrepreneurs are covering the working capital, however; there are also other separate Government programs which are offering to cover the working capital as well. In both cases, there are certain rules and regulations that the applicants must comply with. Funding for startups is always available for SME same as it is for large startup budget corporations. One of the main decision-making instruments required for small, medium, and large businesses it is obviously a clear and professional/through business plan report to show case the fund’s in and out structure.
Based on the existing business activities and past performance, our firm is capable of providing different Government financing and funding solutions whenever a business needs to expand, perform a general face lift to the existing operation, expand into additional locations, digitalize and build an additional online presence on top of physical business locations, and etc. For many of the above business expansion requirements, Canadian Government is offering various unsecured business financing solutions for small and large businesses.
Purchase of Existing business
Whether you are buying the shares, assets or both of the existing business, there are so many Governments unsecured business financing solutions available in Canada. Including financing of the 100% of the existing business purchase and sales transaction, business acquisition financing in Canada exists for small, medium and large companies. While buying a business, seems to be very simple and attractive, it is very important to understand how to read the financial statement of the existing operation and how to appraise the business assets and how to determine the real business value in order to understand if the purchase price is right or wrong.
When partners have made a decision to split the business, there are many financing solutions in place to help the buyer with the execution of the transaction; provided the buyer and the business financial perimeters obviously match what lenders are willing to accept. It is very important prior to breaking up the partnership to understand the value of each partner contribution. If both of the partners presence and contribution is crucial and vital, then the exiting partner should give enough time and opportunity to the remaining partner to find a proper replacement for its presence after the exiting the business.
Commercial Unsecured Loans
These are the type of funds that the Canadian lenders are offering to the new and existing businesses based on their past, present, and expected future performances. Obviously, there are numerous and various factors which are important during the consideration of such type financing approval and as always, our firm has the knowledge and expertise in analyzing the factors noted above, due to our aged and continuous relationships with the Canadian lenders, in order to be able to assist our clients with approvals of their financing applications within commercial unsecured loans spectrum.
There are many businesses that provide their services/products based on a payment plans of 30/60/90/120 days which means they are not getting paid right away and required to delay their cashflow pending on the payment terms and conditions. The solution for such cashflow delays is done through receivables financing/factoring. This type of solution is usually used as a high interest bridge financing while keeping the cashflow going and the profits still made. Many Canadian institutional and private lenders are offering such a commercial unsecured financing solution.
Based on the business past, present, and forecasted performance, commercial unsecured working Capital financing is available in many cases. Primarily, the lenders are looking for continues past, present and future company profitability and typically they are offering working capital credit facility in a size of company’s average net profit multiplied by up to 5 times. Usually such an unsecured service is available through institutional and private lenders in Canada.
It is very common to find businesses operating at their maximum capacity without utilizing immediate market share availability. Most of the time, the main reason for stagnation is lack of expansion capital which often enough could be in a size of the business current entire revenue stream. A simple solution to persuade the Canadian private/institutional lenders to provide such expansion capital, is comprised of the following steps; Audited review of the existing business operation, Providing evidence and proof for immediate market share demand for expansion, Detailed and professional forecasting including showcasing for uses of funds while presenting the debt service ability plan upon expansion capital injection availability. For example, there is a business generating a revenue of 10 million dollars a year. However, the immediate market share demand availability is around a 100 million dollars a year. For the business, to expand from 10 million to 100 million annual revenue, the required injection is 30 million. In order for such a expansion capital to be injected, the steps noted above would need to be performed as earlier described.
Any start-up business requires startup capital injection. Regardless of the business startup capital size, the main question always to answer is the ROI component. The ROI is always dependable on the sales forecast of the business while the sales numbers are always relaying on industry statistics and preliminary business owners network connections and possible future sales guarantees. Start-up capital could be available for any size of the business venture provided a proper business plan is presented and future sales based on industry stats and networking connections are in place to provide the lenders/investors ROI confidence and certainty.
Partner buy out Financing
When its time for the partners to split, there is never enough free cash sitting in a business account in order for one partner to buy out another. What the Canadian lenders typically do is that they look at the existing business, value of the assets and consistency in profitability. In such case, there is an opportunity for the lenders, to loan the business for the purposes of the partnership buy out in a following capacity. Up to 80% from the assets value, and up to 5 times the company average net profit.