Canadian Business Loans

By: EconomyWatch Content   Date: 23 December 2009

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A Canadian business loan is offered by a number of agencies, both government and private, for entrepreneurs with viable business plans. Business loans may be required for starting up a business or expanding it or even for carrying out day to day operations. 

Types of Canadian Business Loans             

A Canadian business loan can be secured or unsecured loans, a start up business loan or commercial loan or loan for invoice financing. Other types of business loans available in Canada are long term loans and quick business loans.

                                                                                                       

Existing businesses or large established businesses that are seeking funds to expand tend to have easy access to loans from traditional big banks. However, it is the smaller businesses or start ups that face difficulties in getting business loans from the bigger lending agencies. 

Sources of Small Business Loans in Canada

Several specialized lending agencies offer a Canadian business loan for promoting start ups or new ventures in various fields.

 

Some of the important sources of business loans in Canada are:

ü      Canada Small Business Financing Program: Operated through various banks and credit unions in Canada, this program offers funding of up to $5,00,000 for setting up a new business or expanding an existing one.

ü      Business Development Bank of Canada or BDC: It offers long term financing of up to $50,000 for promoting trade through participation in trade shows, purchase of additional inventory or even creation and implementation of a market plan. The BDC also offers a Co-Vision Start up Financing Program for businesses in early growth phase. Under this program, business loans of up to $1, 00,000 are available to meet working capital requirements or for acquiring fixed assets.

ü      Several institutions have micro loan programs of up to $15,000 for entrepreneurs who face difficulty in borrowing from traditional banks.

 

ü      Community Loan Funds: These non profit organizations offer business loans to ventures that face difficulty in getting the necessary funding from traditional banks.

ü      Special Programs for Women and Young Entrepreneurs: Several organizations offer a Canadian business loan for women and young entrepreneurs to encourage them to compete as equals with businesses that are well established.

ü      Angel Investor Networks: These networks are willing to invest in businesses that have the potential to do well and offer business loans to such ventures.

 

Remember, the last category is the best one, namely, friends and family. They are the most reliable and solid source of funding the start up ventures.


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