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Is your New Brunswick business in need of some good financing? Have you tried to apply at your bank, only to have your applications denied? Don’t give up! If you’re reading this, it means you’ve discovered Loans Canada and you’re interested in what we have to offer.
Read more about these services through our business financing page.
Ready to Apply For a Business Loan in New Brunswick?
The application procedure is one of the most important steps to consider when you’re looking for business financing in New Brunswick. Before you apply, it’s best to make yourself as creditworthy as you possibly can, which you can do with the following steps:
- Pay off any remaining bills you have with other lending sources.
- Do extensive research into business loan lenders of all kinds. Some may offer you more suitable rates, fees, payment schedules, contract terms, etc. Also, look up their name in the Better Business Bureau database to confirm their legitimacy.
- Prepare and establish an effective business plan so your lender in New Brunswick will know that their loan money will be used properly.
- Organize and update your personal/financial information so the process goes more efficiently.
- Prepare bank statements, paycheck stubs, etc. so that your lender in New Brunswick can verify your income.
- Improve your credit however you can so that your lender in New Brunswick can see you are and will continue to be a responsible borrower and bill payer.
Looking for a bad credit loan in New Brunswick? Read this first.
How Can Your Business Loan Be Used in New Brunswick?
Once you’ve been approved for your New Brunswick business loan, you can invest it toward the areas of your business that need it most. Remember, your loan isn’t reserved solely to establish your business in New Brunswick. You can also use it to:
- Remodel or repair your current business location.
- Open up an additional location when your business expands.
- Pay your staff members’ hourly wages or salaries.
- Fund your advertising and/or marketing strategies.
- Finance any business-related items you need (office furniture, appliances, supplies, equipment, etc).
- Buy new business-related items when yours are in need of an upgrade.
- Design and manage an online business website.
- Finance delivery trucks, company cars or other business-related vehicles.
For a better understanding of small business terms, check out this vocabulary.
What Else Should You Ask Your Lender?
In New Brunswick, every lender’s application procedure is different in some way, but there are still a few general questions you should ask them before you sign any contracts. These questions include but aren’t limited to:
What industry does my business have to be part of to receive financing in New Brunswick?
Answer – Almost any industry can qualify for a business loan in New Brunswick, including but not limited to:
- Restaurants, food trucks, and other food/beverage-related shops.
- Private law firms, offices, clinics, practices, and facilities.
- Medical clinics, practices, facilities and supply distributors.
- Transportation, travel, freight, or shipping-based companies.
- Hotels, motels, or other hospitality-based businesses.
- Pet stores, food/supply companies, and grooming facilities.
- Health and wellness facilities (spas, salons, etc.)
How are my business and my credit related?
Answer – When you apply for a business loan, most lenders will check your credit (report, score, rating, history) to confirm your willingness to pay your loan properly. This can lead to several different events, such as:
- Good credit (credit score of 650 or above) leads to higher chances of approval and lower interest rates, making your loan cheaper.
- Bad credit (credit score of 620 or below) leads to lower chances of approval and higher interest rates, making your loan more expensive.
- Responsible payments (timely/full loan amounts) leads to your lender making positive reports to Canada’s credit bureaus (Equifax and TransUnion), which improves your credit.
- Irresponsible payments (late, short, and/or skipped amounts) leads to your lender making negative reports to Canada’s credit bureaus, which diminishes your credit.
What else happens when you can’t make your loan payments on time? Find out here.
How large of a business loan can I be approved for in New Brunswick?
Answer – As we said, your lender might operate differently than others in New Brunswick, so ask them exactly how much they would let you borrow. Otherwise, your loan amount and interest rate will mainly depend on your:
- Credit health – The better your credit looks, the more your lender will trust you with larger loan amounts, and vice versa.
- Income – Again, your lender may grant you more money if they can see that you’ll have no trouble affording your payments.
- Employment history – Even if you are making a good income currently, your lender in New Brunswick will also want to confirm your ability to hold down a steady job. If they see that you frequently change jobs, it may make them skeptical of your financial ability.
- Current debts – As we mentioned, your lender may consider you a borrowing risk if you already have unpaid debts all over town. Click here to see our debt timetable.
- Assets – While optional, the presence of collateral (valuable properties for compensation) is a way that you can increase your chances of approval and earn a lower interest rate.
- Co-signer – Also optional, but having a financially stable person to co-sign your loan will also help earn approval and a lower interest rate when your own credit/financial health is not favourable. Want to learn more about guarantor loans? Take a look at this.
Should I use a business loan to finance my business expenses?
Do I have to give a personal guarantee when getting a business loan in New Brunswick?
Do lenders check your personal credit score for a business loan?
Want a Good New Brunswick Business Loan?
Then you’ve come to the right place. Loans Canada is always here to connect our borrowers with the best sources of business loans in New Brunswick, as well as the rest of Canada. Simply apply below. No stress, only success!