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Many of Canada’s cities and towns are made up of countless small businesses. In fact, 95% of the companies in Edmonton are classified as small businesses. The main thing that all businesses have in common, small or large, is the need for funding.
While some people may have enough to start their business on their own, this is often uncommon. As a result, many business owners in Edmonton will rely on business loans to expand and grow their companies.
How to Use a Business Loan in Edmonton?
So just how can you use a business loan in Edmonton? Well, a business loan can be used for a number of different things. This includes:
- Improving or diversifying your marketing efforts
- Moving to a new location or upgrading the location you are currently at
- Hiring and training new employees
- Buying equipment or upgrading the equipment you already have
- Expanding your online store
Really, a business loan can often be used for anything you need an extra little bit of money for. Of course, as with any type of loan, be sure to only borrow as much as you can afford to pay back. The last thing a growing company needs is a ton of debt that they can barely afford to pay off (for more information about business debt, click here).
Be sure you truly need something before you take out a loan to get it. Sometimes, saving some money up over time makes more sense than getting a loan, as well. Ultimately, it is up to you, but be sure to take your time and really think about whether a business loan makes sense in your circumstance.
Looking for funding for a nonprofit organization? Click here.
How to Apply for a Business Loan in Edmonton?
Now that you are aware of all that you can use a business loan for, how do you go about applying for one in Edmonton? Well, the very first thing is to ensure that all of your finances are in order. You need to have detailed statements and truly know whether you can even afford to take out and pay for a loan or not.
Next, you need to find the right lender in Edmonton. Each city or town is likely home to many different lenders that will be willing to lend businesses money. You need to take time and shop around to find one that works for you. Maybe it is one that offers the best deal or one that makes you feel the most comfortable. Either way, make sure you find a lender that checks off all of your boxes and offers what you need.
Can I apply for a business loan based solely on an idea? Find out here.
Many lenders in Edmonton will also like to see some sort of a business plan or blueprint before they lend you any money. This should outline what you are going to use the money for, how much you need and other important information that could be valuable to the lender. If you don’t have something like this, you should create one. If not, you may struggle to get approved for a business loan, depending on who you try and work with.
Types of Business Financing Available in Edmonton
While a business loan is a great and common way to acquire the funds you need, it is not the only type of business financing available to you in Edmonton. There are also options such as merchant cash advances, equipment financing, and commercial mortgages.
Merchant Cash Advances
A merchant cash advance is when you leverage your future sales to gain access to capital right now to help your business operate. A small percentage of your daily credit and debit sales will be used to repay the loan. This makes a merchant cash advance a great option for businesses who have seasonal lows.
While business loans can be used for equipment, why not opt for equipment financing? Here you will work directly with an expert who knows what you need and how much it will cost. It is this expertise that will ensure you get what you need, for a price that works for you and your budget. A wide range of equipment is covered and you will generally enjoy affordable rates with this type of financing.
If you need to purchase some office space or expand your operations, it makes sense to go with a commercial mortgage. These help you invest in your future and many commercial mortgages can be customized to your needs. Also, if you have bad credit, there is still a good chance that you will be able to qualify for a commercial mortgage.
Want to learn how to increase your business’s cash flow? Check this out.
Getting Your Edmonton Business What it Needs to Grow
Are you a business owner in Edmonton? Are you looking for funding to help take your business to the next level? Loans Canada can match you with the right business financing option.