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Many people in Winnipeg turn their passions into viable businesses, allowing them to focus on doing what they love while earning. But starting a business – and growing it – takes some capital. There are very few business ventures out there that don’t have much overhead, especially when starting out. Most businesses in Winnipegrequire equipment, staff, and a commercial unit to operate out of, all of which cost money.
But what if you don’t have the funds to get your business off the ground and running? Should you throw in the towel and put your dreams to rest? Absolutely not. In fact, that’s why business loans exist: to help entrepreneurs in Winnipeg start and expand their businesses.
How Can You Use a Business Loan Winnipeg?
There are all sorts of uses for business loans in Winnipeg. Here are just a few ways that you can apply business loan funds.
Starting a new business in Winnipeg – In order to pay for all the things that a new business in your industry typically requires, you’re going to need money. And a business loan can provide you with these much-needed funds.
Growing your Winnipeg business– If you’ve established a successful business and are thinking of taking things to new heights, an expansion might be on your mind. But more staff, a bigger unit, and more equipment require money, which is where a business loan can come in handy.
Look here to discover some ways of making your business greener.
Paying staff – If you’re more than just a one-man show, you’ll need to hire staff to help keep your business operational. You can use the funds from a business loan to help cover the cost of payroll for your employees.
Marketing – It takes money to spread the word about your business, which you can obtain through a business loan.
Upgrade your equipment – No matter what type of tools and equipment you need to run your business in Winnipeg, they can be expensive. But a business loan can help bridge the gap between the cost of such equipment and what you can afford.
Starting or operating a non-profit organization? Take a look at this.
Open a new location – If business is booming for you, it might be time to open a second location. Once again, such a move can be expensive, but a business loan can help make that happen.
Open an e-commerce website – Take your business to new levels and open an e-commerce site. To do this, though, you’ll need some money, which is where a business loan can come in handy.
There are tons of ways that a business loan can assist you. No matter what your specific needs may be, business loans in Winnipeg can prove to be a big help.
Try reading this article if you’re a female business owner or entrepreneur.
How to Apply For a Business Loan in Winnipeg
In order to get approved for a business loan, it’s important that your finances are in order and that your credit profile is in good standing. Lenders in Winnipeg will look closely at all financial aspects of a borrower before deciding whether to approve or deny a loan application. Given this, it’s important to make sure you’re financially healthy and in a good position for loan approval in Winnipeg.
To do that, consider doing the following:
Look for mistakes on your credit report. The first thing you should do is get a copy of your credit report from one of the three major credit bureaus in Canada. Once you get your report, make sure all the information is correct. If you find any mistakes, have them reported and investigated. Mistakes – even minor ones – can have a negative impact on your credit score.
Here are the 5 most common errors found on credit reports.
Find out your credit score. Knowing your credit score will give you a better idea of the likelihood of getting approved for a business loan. It will also let you know if any improvements need to be made. If they do, now’s the time to start making them. Generally speaking, the minimum credit score required for loan approval is between 650 to 680, though this may range among different lenders in Winnipeg.
Comparison shop. Much like you would shop around for a new jacket or a new TV to find the best one at the lowest price, so should you comparison shop for a business loan. In Winnipeg, different lenders offer different products, some of which may be better than others.
Put a business plan together. Most lenders in Winnipeg and Canada, in general, are only willing to extend a business loan to those who have put a business plan together. Lenders will want to know what the money will be used for, how much money is needed for the intended purpose, the type of business that you run, what you need to grow your business, your expected earnings growth, and what type of experience you have in your industry.
Not sure what your business credit score and report are? Find out here.
What Types of Industries Can Business Loans Help With in Winnipeg?
Business loans in Winnipeg can serve a number of different industries, including the following:
This list is not exhaustive by any means, as there is virtually no limit to the type of business that a business loan can serve.
Types of Business Financing in Winnipeg
There are a few different variations of business loans that you may want to get familiar with before choosing the exact type of loan you need. Here are a few options that may be available:
- Small business loans – This is the traditional option that provides a lump sum of money to be used to help a small business cover the costs of daily or expenses or even an expansion.
- Merchant cash advances – Businesses that accept credit card payments may opt for a merchant cash advance, which involves using future credit card receivables as an advance in funds.
- Commercial mortgages – To pay for a new commercial unit, a commercial mortgage may be required to make the purchase possible.
- Equipment loans – These types of secured loans use the equipment being purchased to collateralize the loan.
- Asset-based financing – Commercial assets can be leveraged to get approved for an affordable loan.
Be sure to watch out for predatory small business lenders.
Need Financial Help to Start or Expand Your Business?
Starting a brand new business or expanding the one you’ve already worked hard to build can be exciting, but it can be expensive too. But with a business loan in Winnipeg, you can put your financial worries aside. To help you get your hands on a business loan, call Loans Canada, and we’ll put you in touch with the right lender to give you exactly what you need.