The Loans Canada team sits down with Gary Schwartz of the Canadian Lenders Association to talk about open banking.
Business Loans Newfoundland and Labrador
Compare and Save With Loans Canada
Written by Bryan Daly
Best Business Loans Newfoundland and Labrador (Online) September 2021
Note: Loans Canada does not arrange or underwrite mortgages or any other financial service. We are a simple referral website that provides free educational resources to help Canadians make better decisions.
Newfoundland and Labrador has plenty of businesses that require good financing. If you’re a business owner, you might be paying for all your expenses out of pocket. Then again, since that’s not feasible for the majority of business owners in Newfoundland and Labrador, chances are you’ll need a business loan to stay ahead of the game.
What Makes a Business Loan Different From Other Types of Loans in Newfoundland and Labrador?
Business loans are quite similar to typical installment loans or personal loans, which is where some Newfoundland and Labrador borrowers might get confused. You apply through your bank or another lender. If approved, you will receive a certain amount of liquid loan cash in your bank account, along with an interest rate that varies according to your lender’s specifications and your own financial health. The loan will then be divided into even payments and you’ll pay it back over a predetermined schedule. Depending on the amount you were approved for, the loan might take several months to several years to pay in full.
Want some information about secured business loans? Read this.
However, business loans are meant specifically to fund parts of a business, rather than just for the in Newfoundland and Labrador borrower’s personal use. In fact, you can use one of these loans to finance almost any sector of your business, such as:
- New uniforms, furniture, supplies, equipment, etc.
- Purchasing or repairing company vehicles
- Upgrading to a new workspace
- Mortgaging, renovating or maintaining your new workspace
- Building and updating a blog or website domain
- Getting advertising space in local newspapers, on billboards, television commercials, etc.)
- Manufacturing and copyrighting company merchandise
Do Only Certain Businesses in Newfoundland and Labrador Qualify for Business Loans?
Actually, almost any type of business in Newfoundland and Labrador can qualify for one of these loans, as long as you can show your lender that you have a solid plan of action and that your own business is worth the money they’re lending you. Here are just some of the industries that would qualify for a business loan in Newfoundland and Labrador:
- Podiatry practices or medical facilities of any kind
- Florist shops
- Private law firms
- Wellness spas
- Coffee shops and other service-industry businesses
- Construction or contractor businesses
- Real estate companies
Why Did My Bank Deny My Business Loan Application?
Some lenders in Newfoundland and Labrador operate with strict borrowing guidelines, especially conventional lenders, like banks. For instance, if your credit or income wasn’t up to their standards, they might’ve denied you for it. Click here to know more reasons why your loan application may have been rejected.
Should I Apply Again?
That’s not a very good idea. It’s best not to apply multiple times for any credit product within a short period. That’s because a credit check will often apply. This is when a lender performs a hard inquiry to examine your credit report, which reduces your credit score slightly. If you’re being denied constantly, not only will your score be damaged, you could end up looking like a risky borrower, since lenders will question why no one is accepting your applications. For more information about credit inquiries, read this.
Should I Look Around at Different Lenders in Newfoundland and Labrador?
Yes, it’s definitely good to do research and compare lenders in Newfoundland and Labrador before applying with the first loan source you come across. Some lenders offer better rates, larger loans, more favorable terms, etc.
What Documents do Lenders Need During The Application Process?
- Every in Newfoundland and Labrador lender’s application procedure will be different. Since business loans can come in large amounts, however, they’ll need to confirm that you can comfortably afford all your payments, plus interest and fees. Some noteworthy documents that many lenders take into account include:
- Your credit report, score, rating and payment history (some lenders don’t check credit, but it’s best to have yours in good shape for better chances of approval and lower interest rates)
- Your income and recent bank statements (they’ll want to know you’re making enough extra money for payment purposes, just in case your business doesn’t see a profit right away)
- Your employment record (even if your business becomes your primary focus, a history of steady employment still shows you’re a responsible person)
- Your business plan (understandably, a lender won’t want to lend you such a large amount of cash if it looks like you haven’t through your business strategy through properly)
How to Improve Your Chances of Approval With Bad Credit
Yes. Even if you have bad credit (a credit score of 620 or lower), you can still gain approval if you:
- Look for a bad credit lender (if you can’t fix your credit in time, there are lenders in Newfoundland and Labrador that work specifically with borrowers with poor credit)
- Fix your credit (if you have the time and patience, you can fix your credit through timely and full bill payments on your other credit products, disputing errors in your credit report, etc.)
Look here for more methods of improving your credit in 2018
Alternative Small Business Financing Options
Actually, there are a number of business financing options available to in Newfoundland and Labrador borrowers, many of which you can receive through Loans Canada, such as:
- Merchant cash advances
- Equipment financing
- Payment processing
- Asset-based financing
- Commercial mortgage
Can I get a loan for my business if I have bad credit?
How do I ensure I get the best rate for my business loan?
How does a business loan work?
What’s the Next Step?
If you’re a Newfoundland and Labrador business owner and you’ve decided that a business loan is the right product for you, look no further than Loans Canada for it. Apply today! No hassle, no stress!