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When you operate your own business, your expenses can be continual and often very steep, especially in Calgary, one of the most popular but pricey places to live in Canada.
When all your time is invested in the needs of your business, knowing where your funding is coming from can be a major concern. If that’s the case for you, however, a business loan might be exactly what you’re looking for.
Click here for more information about loans in Calgary.
What Type of Business Financing Can I Get in Calgary?
One of the most important things to know about business financing in Calgary is that it can come in several different forms. Some of the main business financing methods that we can help you with include (but aren’t limited to):
- Small and large business loans
- Merchant cash advances
- Commercial mortgages
- Equipment financing
Interested in any of these business financing options? Look here to know more.
What Calgary Industries Could a Business Loan Be Useful For?
In Calgary, as well as the rest of Alberta, there are plenty of industries that are popular amongst business owners and entrepreneurs alike. For instance, being that Calgary is always expanding, construction is a vital source of industry. However, there are many more industries where a business loan would be extremely useful, such as:
- Shipping, delivery, passenger, and other kinds of transportation businesses
- Bars, restaurants, and other service industry locations
- HVAC (heating, ventilation, air conditioning) repair businesses
- Wellness spas
- Gyms and fitness clubs
- Pet stores and pet groomers
- Dental practices and laboratories
- Podiatry clinics and other medical facilities
Are you a female business owner or entrepreneur? Take a look at this.
What’s the Best Way to Use a Business Loan in Calgary?
Remember, business loans are versatile. When you’re approved, your loan funds should be deposited directly into your bank account. You can then use those funds for just about any business-related expense that comes your way, such as:
- Paying for advertising space on billboards, television, newspapers, etc.
- Compensating your current employees
- Hiring, training, and compensating new, or additional staff members
- Leasing or purchasing the right equipment and supplies
- Expanding your business with additional locations
- Repairing or renovating your current workspaces
- Setting up a company website
What Does the Business Loan Application Process Look Like in Calgary?
Another good thing about business loans is that you can find them with prime lenders, like banks and credit unions, as well as alternative, private, and bad credit lenders in Calgary. While certain borrowing criteria may vary, lenders are aware of how expensive it can be to operate a business of any kind. Therefore, their application and approval procedures might be somewhat more strict than you would see with, say a traditional installment loan in Calgary. They’ll want to know exactly which areas of your business their financing would be invested. So, it’s best to be prepared.
Before Applying for a Business Loan in Calgary:
- Take time to research and compare lenders properly
- Look for a source with a good reputation and interest rates to match
- Confirm that they are legitimate and are listed with the Better Business Bureau
- Ask your lender about their policies and what documents they require
- Factor the cost of their interest rates and fees into your budget
- Avoid any debt that you won’t be able to afford in the months/years to come
- Update and organize any necessary personal/financial information
- Draw up a detailed and efficient business plan
- Consider offering collateral to secure a larger loan and lower rate
- Consider finding a cosigner as an alternative way to secure the loan/lower rate
- If you’re sure you can handle the responsibility of your business loan, you’re ready to apply
Why is it Important to Have a Good Credit Score?
As we said, your lender should be aware of how much even a small business can cost. Because of this, the chance of prospective clients defaulting on their business loan can be higher than someone applying for a traditional loan for personal use. Even if you have a solid business plan, your lender is still taking more of a risk. So, your credit health, particularly that of your credit score, may be more important than ever.
Considering applying for a personal loan in Calgary instead? Try reading this.
Credit scores in Canada range from 300-900 and represent the way that we, as borrowers, can handle the credit products we use. The closer your score is to 900, the more healthy your credit is and the more likely you’ll be to secure a larger business loan at a more affordable interest rate. This is particularly true with banks and other prime lenders, where loan approval standards are often strict.
- When your score is 660 or above, you have good credit. This leads to higher approval odds and better rates because it’s a sign that you’ve been (and may continue to be) a responsible borrower.
- On the contrary, if your score is 560 or under, you have bad credit. The opposite effect will occur because it’s a sign that you may have been (and may continue to be) irresponsible with your credit products. It may also show them that you’ve experienced one or more financial delinquencies, such as a bankruptcy.
- Lenders may also examine your credit report, which contains your payment history. With that history, they can see how you’ve been dealing with your other active or discontinued credit accounts over a certain number of years. If they see a good record of payments, your chances will improve, and vice versa.
Don’t worry, if you have bad credit, you should still be able to find a lender who will approve you. However, they are likely to charge you a higher interest rate and may be less open to negotiating the length and terms of your payment plan, so consider these factors before you apply.
Looking for a bad credit loan in Calgary? Click here first.
Reaching Out to Loans Canada
If you’ve been looking for the right business loan source in Calgary, but haven’t had any success, then we have some good news for you, Loans Canada can help find you the best business financing for your needs.