Misinformation. It’s all over the place today it seems. Let’s disappear some ‘ myths’ and misunderstanding around the Canada Federal Small Business Loan.
The small enterprise loan program in Quebec is sometimes more commonly the ‘ SBL ‘ loan. It is a tremendous program to assist Canadian new and existing business owners with the credit of their business.
At a period when Canadian business capital seems more challenging than ever it seems logical which the entrepreneur and company owner wants to explore all of possible financing alternate options. In our opinion the program you want is bar not one of the best financial alternatives for Canadian business.
So just why should so much misinformation along with misconception seem to occur whenever we discuss this course with clients. Most people don’t know, however , we do know we can help clear up a misinformation – so let’utes go!
Myth # 1- ‘ The business is doing ok and doesn’t have to have a government small business personal loan ‘ Well that might be the case howevere, if you are looking in the future pertaining to equipment , real estate or even leasehold financing ( yes you can certainly finance leasehold improvements!) then a rates , terms together with structure of the system cant be whip .
Myth # 2- ‘ The SBL personal loan is for business owners using bad credit ‘ – Wrong, incredibly wrong, in fact the corporation owner, although he or she or she only makes certain 25% of the loan within the program must have realistic personal credit . This software is best described as becoming financing for small businesses, including start advantages that can’t access all the traditional credit history they need.
Myth # 3 – ‘ Government entities lends the finances directly to you or your company ‘ – Wrong again, as being the program is likely by the government, along with administered from a plan perspective — however predominantly banks are the ‘ companiens ‘ of the program.
Myth Number four -‘ the program is a grant – and no payment is called for ‘ Very wrong! This isn’t a grant; it’utes a 5-7 year phrase loan with regular monthly payments. Many people we speak to are wondering about ‘ grants’ and other fed incentives… that is NOT the SBL system.
Myth # 5 – ‘ Anyone can obtain a Canada government
Small business loan product ‘ – You guessed it, wrong just as before. Although the rates, words, structures, flexibility, along with limited guarantee would be the key aspects of your SBL loan there are certain criteria that must be in place so that you can qualify. Additionally the technique only covers companies with actual and also projected revenues less than 5 Million money.
Myth # 6- ‘ Government small business loans are hard for getting, and involve a great deal of ‘ red tape’ ‘. Well, quite a few may think that, we certainly don’t imagine that’s the case. Home loan approvals with the proper plan in place can take simply a day or two! It’s supposed to be about ensuring you have a plan in place that insures all requirements in the clear fashion.
Myth # 7- ‘ A company or particular person can get a Canada government small business mortgage anywhere ‘ – Well certainly not, you need to ensure your institution works with the program and has now experience in submitting requests which can be clear and make impression and satisfy application criteria .
Well, there you have it. In order to maximize the benefits of this great program speak to a respected, credible and professional Canadian business funding advisor who can help you fast track business credit success, with a method that is much customized to your financing needs.
Stan Prokop – 7 Park Avenue Financial
Canadian Home business Financing
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