Burnaby is one of British Columbia’s fastest growing communities, not to mention the third largest city in the province. That makes it a popular place for both tourists and residents, and therefore a great area to establish your own business.
Then, again building and maintaining any kind of enterprise can be a trying task if you’re not backed by the right amount of financing. For everything you need to know about securing the right business funding in Burnaby, keep reading.
Interested in making your business greener? Then take a look at this.
Business Loan FAQs
Firstly, a business loan is a lump of money that you would apply for in order to finance one or more aspects of the business you’ve built. For a better understanding of this kind of financing, let’s take a look at some of the more common questions that new business owners and entrepreneurs may have.
Where Can I Invest My Business Loan?
Traditionally speaking, a business loan is liquid cash that gets deposited into your business bank account soon after you’ve been approved, usually by direct deposit, cheque, or e-Transfer. Beforehand, you and your lender will negotiate a plan for you to repay the borrowed amount via a series if installments. Once the funds are in your account, you can use them for almost any cost that comes your way.
Check out some essential small business vocabulary.
That said, any business loan, small or large can be quite a significant responsibility to take on. So, when you apply, it’s best to show your lender that you plan to use the money on things that are absolutely necessary, such as:
- Marketing strategies
- Paying your employees
- Repairing or renovating your current workspace
- Upgrading to a new or additional location
- Leasing or purchasing the right equipment.
- Building a presence online
- Purchasing and maintaining company vehicles
Click here to see more ways of expanding your business with new capital.
Is a Business Loan My Only Option?
A traditional loan, while helpful in many ways, isn’t the only thing your business needs to function efficiently and maintain a decent profit. As you well know, there are plenty of other areas that require some kind of financial attention.
In that case, there are several other financing options that can help you modify or expand your business, such as:
Merchant Cash Advance – Allows you to leverage a percentage of your future revenues in exchange for additional capital.
Commercial Mortgage – Helps you purchase property for business expansion and/or refinance an existing mortgage.
Equipment Financing – Make tools, heavy machinery, and vehicles more affordable.
Payment Processing – Helps you acquire credit and debit machines so you can increase your revenue and service more customers.
Asset-Based Leasing and Financing – Allows you to secure additional capital by leveraging equipment, vehicles, and other commercial assets as collateral.
Wondering how you can use assets to secure business funding? Find out here.
How Can I Prepare for the Application Process?
Not all types of lenders offer business loans. Those that do will have different kinds of application procedures. However, a business loan can be a substantial amount of money and presents a high level of risk.
When applying, be sure to watch out for predatory small business lenders.
As such most lenders will tighten their borrowing restrictions, meaning you’ll have to be prepared to showcase your financial strength when you apply. After all, the easier it is for you to make your payments responsibly, the more financing you can be approved for and the more affordable your interest rate will end up being.
For the best results overall, be sure to prepare yourself by:
- Comparing lenders and looking for the best loan conditions/terms
- Paying off any existing debt you’ve accumulated
- Organizing any documents your lender requires (bank statements, etc.)
- Checking your business credit report for errors, fraud, or identity theft
- Creating a proper budget and cutting down on unnecessary expenses
- Having some valuable collateral to offer as security.
- Drawing up a detailed and realistic business plan
Read this for information about your business credit report and score.
Businesses That Are Eligible for Financing
As we mentioned, every business lender has different standards for the borrowers they choose to approve, the repayment plans they offer, and the rates they charge. For instance, some lenders allow you to adjust your repayment schedule before and after you’ve received your loan, while others will only offer weekly installment plans.
However, almost every business can be eligible for this kind of financing, as long as you’re a strong candidate and prove to your lender that you have little to no chance of defaulting your upcoming payments.
hat said, when establishing your operation, it’s also important to consider what types of industries have a good chance of succeeding in a city like Burnaby. After all, the more revenue your enterprise can collect, the more willing lenders will be to approve you.
Examples of Eligible/Profitable Industries in Burnaby:
- Real estate
- Shipping and manufacturing
- Maintenance and repairs
Do you have bad credit? Look here to learn how you can get a business loan.
Need Business Financing in Burnaby?
If you’ve been searching for a business loan or other business financing solution in your area, rest assured that Loans Canada is here to help you connect with the lenders, rates, and repayment plans that are best suited to your needs. Simply contact us today for more information or apply when you’re ready to get started!