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Like many other areas of Alberta, a significant portion of the Red Deer’s economy comes from the extraction of natural resources. Red Deer also has booming retail, construction, and manufacturing industries, any of which can be highly profitable for the business owners and entrepreneurs involved. The only problem is that any business, small or large, can take a lot of financing before profits are seen.
Can you get approved for business funding based solely on an idea? Click here.
If you’re operating any kind of business in Red Deer, your working capital needs to come from somewhere. In that case, a business loan might be the perfect solution. Keep reading for more information about this beneficial credit product in Red Deer.
What Can a Business Loan Help Finance in Red Deer?
A business loan is a fixed amount of credit, which you’ll need to apply for through a bank, credit union, or alternative lender in Red Deer. Typically, the money you receive is deposited directly into your business bank account a few days after your application is approved, although some lenders offer different payment options (e-Transfer, cheque, etc.).
Once you have access to the loan money, you can use it to improve your working environment and cover almost any cost that comes your way. That said, since a business loan can be a substantial responsibility, it’s important to only finance the costs that are essential to the success of your enterprise, such as:
- Paying your employees
- Investing in marketing strategies
- Financing desks, chairs, and other furniture
- Installations and general maintenance of your workspace
- Fueling, repairing, and insuring company vehicles
- Buying new computers and other office technology
- Licensing, taxes, mortgage payments, and other typical property costs
Trying to expand your business with new capital? Read this first.
Are Business Loans My Only Financing Option in Red Deer?
While a business loan allows you to deal with the general expenses of your operation, there are also several other financing products and programs available through our network, each of which can benefit a different part of your workspace. If a business loan isn’t what you need right now, you can also apply for:
Merchant Cash Advance – Leverage a percentage of your future cash flow in exchange for additional financing.
Commercial Mortgage – Purchase property to build and expand your business, or refinance your existing mortgage.
Equipment Financing – Lease or purchase the tools and heavy machinery that your business needs to function effectively.
Payment Processing – Make customer payment transactions easier and increase your revenue by installing debit/credit card readers with low fees.
Asset-based Leasing and Financing – Use one of your commercial assets, such as valuable equipment or property as collateral to secure extra capital.
Will My Business in Red Deer Qualify For a Loan?
While most business types have the potential to qualify for a loan, the reality is that not all of them will. This is due, in part, to the more restrictive nature that comes with applying for financing of this caliber.
For example, a basic personal loan involves a relatively simple approval process and can be applied for with almost any kind of lender. Typically, your income and the health of your credit report are the main deciding factors, depending on where you apply and how much money you’re requesting. If your financial health looks like it can support your upcoming loan payments and fees, the process can begin.
On the other hand, business loans can be much larger than the average personal loan. After all, any business, no matter the size, can definitely be expensive to run. Even the empty lot that you’re building on can cost hundreds of thousands to purchase and most lenders won’t shell that kind of money out to just anyone.
So, to get approved for financing in Red Deer, especially a significant amount of it, you’ll need to strengthen your application and show your lender that your business will make enough profit to return their investment on schedule. Make these arrangements well before you apply to earn the best chances of success and the lowest interest rates available.
Here are a few steps you can take to improve your approval chances in Red Deer:
- Research lenders in Red Deer that specialize in your business field
- Pay off any other outstanding debts
- Draw up a proper, detailed business plan to present
- Form a strict budget and calculate all your weekly expenses
- Organize recent bank statements and other proof of business income
- Regularly monitor your business credit (report and score)
Interested in more information about business credit scores? Check this out.
Which Red Deer Businesses Can Receive Financing?
As we mentioned above, almost every business, no matter what the industry, has the potential to be approved for a loan. Once again, the key is to present a sound business strategy and financial strength. If you can do that, the possibilities are all but endless.
That said, in order to ensure you have the best chances at prosperity, it’s also good to understand the types of businesses that are prone to profit in your particular town and province.
In Red Deer, some of the most successful business types include (but certainly aren’t limited to):
- Food trucks, diners, and restaurants
- Clothing outlets, fishing/camping stores, and other retail distributors
- Pharmacies, clinics, and other medical institutions
- Farms, markets, and other agricultural enterprises
- Mechanics, body-shops, and vehicle dealerships
- Heating, electrical, and utility-based companies
- Plumbing, cleaning, and household repair services
Searching for the right farm mortgage? Try reading this.
Ready to Finance Your Business in Red Deer?
Any Red Deer business, including yours, can qualify for the right business funding, as long as you’re prepared to handle the responsibility. It’s also better if you know where to look and Loans Canada can help you do just that. Contact us today to be swiftly connected with the best business lenders in your town!