If you have plans to start your own small business in Canada, you should definitely seek the help of the small loans programs. Small businesses play a very significant and vital part in the development of the economy of the country. But the unfortunate part is that in terms of the financing they are always ignored and not given the complete support that is expected from the financial institutions and the banking sectors. All thanks to the Canada Small Business Financing Programs and platforms that the individuals with small scale business ventures are able to seek the required financial help and assistance.
The program of the fast little loans is tailored to meet the requirements of small businesses, firms and organizations, yet maintaining the standards and procedures that are mandated by the government for bigger financial institutions. This is not a new concept and has been in practice for few decades now and has been helping and serving the needs and demands of millions of individuals of Canada. The eligibility for the cash loans is limited to the small firms and companies and those who have recently opened up and started their business. This is especially designed for the organizations with a gross annual revenue or income of 5$ million and even less.
Non profitable organizations, charitable trusts, farming businesses not falling under the scheme of the Canada Small Business Financial Program, religious organizations etc are not eligible for it. The amount that is applicable for the short term cash loans is upto $500,000 of which only $350,000 can be used for the improvement of the equipments or buying new ones and purchasing or improving the leased property. You have to fill up the form and submit required documents necessary and apply for the financial aid in the banks or the institutions that render it. It remains solely the discretion of the bank for the approval of the loan.
If the situation demands or you consider necessary, you can always consult the officer and ask for any assistance and guidance. The bank officials will ask for some time to review and examine the business proposals and check the authentications of your documents before any final decision is made. Once there is a green signal, funds will be disbursed and your loan application gets registered with the Industry Canada. Small business loans is considered as an amazing program and also regarded as a blessing for all those business organizations and firms who don’t have the budget to make any big decisions.
What are the areas that such small loans that help you to finance? Some of the areas covered as follows:
- Vehicles used for commercial purposes
- The approval cost to purchase or buy a franchise
- Computer software and other telecommunication equipments
- Purchase of goods and commodities for hotels and restaurants
Depending on the selection of the financial institutions the interest rate offers variable or fixed rates along with the 2% registration fees. As a borrower you have to provide some form of valuable asset as a security deposit and collateral.