While Alberta is largely known for its oil and agricultural industries, there are countless more businesses that call the province home. One of the main things that all businesses in Alberta have in common, regardless of what industry they belong to, is the need for funding. And unless you were lucky enough to have a significant amount of start-up cash from your team or even a hefty investment, there is a good chance you will require a business loan.
Can you get a small business loan based solely on an idea? Find out here.
A business loan isn’t all that different from any other type of loan, just that it is used to fund your business in some way. These loans can be for a variety of different amounts and can be secured from most banks, lenders, and credit unions in Alberta. Even if your company doesn’t need one at this minute, it is still good to become familiar with them so you know what to expect should your business need new capital.
How to Use a Business Loan in Alberta?
People in Alberta who get standard loans can use them for anything from tuition to a vehicle. There is a lot of flexibility with most loans, and this extends to business loans as well. There are no limits to what you can use it on, as long as it is related to your business. For example, you can use a business loan for:
- Marketing expenses or other business-related expenses
- Hiring new employees and training them effectively
- Expanding your operations by opening another location or making your current business in Alberta more efficient
- Purchasing new equipment that would be out of the question without some additional funding
Of course, you should only get a business loan if you truly do need one. While it can feel good to invest in the long-term success of your business, remember that you are borrowing the money and will need to pay it back, plus interest. Now, this doesn’t mean you should wait until an emergency to get a business loan, but just be smart about it.
Click here if you’re thinking about applying for a personal loan in Alberta.
Types of Industries That Can Use Business Loans in Alberta
Just as you can use a business loan for nearly anything you want, there are also no rules as to what sort of business can get a loan in Alberta. As long as you run a licensed business that has been up and up and running for several months, you should have no trouble applying for a business loan in Alberta. Any number of businesses from any industry can apply for a loan, including:
- Transportation companies
- Restaurants or bars
- Hospitality-related companies
- Companies in the trades (plumbing, construction, electrical)
- Technology companies
- Real-estate companies
In reality, we could list nearly every type of company from every industry and most would not only greatly benefit from a business loan but will more than likely require one at some point.
Tips to Give Yourself The Best Chance of Approval
While getting a business loan (even with bad credit) is possible, it is not a guarantee. So if the success and livelihood of your business are at stake with the acceptance or denial of your loan application, you need to do all that you can to get approved. In order to help, we have a few tips here that can help you get the best chance of being approved for a business loan in Alberta:
- Spend time working on your credit before applying. You should eliminate any large debts you have, and make sure you make all payments on time. You want your credit (both report and score) to be as good as possible before applying, to get the largest loan possible and the lowest interest rate possible. Shopping for low-interest rates? Read this first.
- Visit or contact a variety of different lenders before making a choice. If you only speak to one, you might be missing out on great deals or lower rates from other lenders in Alberta. Not only that but visiting numerous lenders will give you a better chance of approval than simply visiting one and applying.
- You will want to fix up your business plan before applying, as many lenders in Alberta will require you to share your business plan with them if you want a loan. You should be as clear, concise and detailed as possible.
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Finding the Best Business Loan in Alberta
If you feel like your business could benefit from a business loan, don’t hesitate to contact Loans Canada. We will be able to help you find the best loan in Alberta for your business, no matter your needs or requirements.