If you’re a gig worker in need of financial aid or you’re interested in becoming a part of the gig economy, you should read this article.
Business Loans Toronto
Save time and money with Loans Canada
Written by Lisa Rennie
Best Business Loans Toronto (Online) 2020
If you’re looking to start and run a business in Toronto, you’ll need money. But oftentimes, entrepreneurs don’t necessarily have the liquid cash readily available to pour into their business ventures.
That’s where business loans come into the picture. By getting access to funds from a lender in Toronto or any other city you live in, owners can get their businesses starting from the ground up, or can expand their current businesses to experience true growth.
Read on to find out all you need to know about business loans in Toronto.
How to Use a Business Loan in Toronto
There are several different uses for a business loan in Toronto, including the following:
Expanding the business – If you already have a successful business up and running, perhaps you have dreams of expanding and growing it. But in order to do that, you need money to spend on a bigger unit, hire more employees, buy more inventory, and so forth.
Is your business desirable for financing? Find out here.
Marketing – With all the competition out there in Toronto, you’ll likely need to advertise your business. Advertising can costs a lot of money, which you might not have readily available. A business loan can provide you with the funds needed to get the word out there about your company to help you experience real growth.
Hire new employees – Unless you’re a solo entrepreneur, odds are you’ll need to hire some help for your business, who not only need to be paid but also require payroll duties and tools to be managed.
Move/upgrade locations – Whether you need a bigger space, are looking to change locations in Toronto, or your current space is no longer working for you, money will be needed to make such a change.
Upgrade equipment – Tools and equipment can become obsolete after a while, and in order to remain competitive, you may need to spend some money upgrading your equipment from time to time.
Want to know more about business loans for equipment? Take a look at this.
Open a second location – If you’re looking to grow your business, perhaps opening up another location is on the agenda. Again, such an endeavour requires capital.
Expand your online retail store – If you’re dabbling in e-commerce, you’ll need money to host a website and hire the pros to keep it up-to-date.
Click here if you need to deal with small business debt.
This list is by no means exhaustive. There are seemingly endless ways that a business loan in Toronto can serve you well.
How Do You Apply For a Business Loan in Toronto?
In order to apply for a business loan in Toronto, consider the following:
Find out your credit score. Your credit score plays an important role in whether or not you can secure a business loan in Toronto, as well as what interest rate you would be offered if you were approved. A score of at least 680 is considered healthy enough to get approved.
Look here to find out how lenders set their interest rates.
Get your personal credit history in order. If your business is new or is less than three years old, the lender will look at your personal credit history. Take some time to get your personal credit history in order before applying for a business loan. If there are any errors on your credit report, have them investigated and fixed.
Look at your lender options. While you can always approach your bank or credit union for a business loan, there are many other lenders available in Toronto. If you’re turned down by one lender, try with another. If your credit score is standing in the way of getting a loan, consider either waiting to apply and take steps to increase your score, or consider alternative business lenders.
Here’s how you can get a small business loan with no credit check.
Come up with a business plan. You shouldn’t go into a meeting with a lender without a plan in place for why you need a business loan and what you’ll be spending the funds on. Having a solid business plan in place can increase your chances of getting approved. Without a plan, you probably won’t even know how much money you truly need or how quickly you can pay it back.
Business plans usually contain things such as a few years of past and anticipated financial statements for your business, a statement of collateral, an assessment of the market that your business serves, and a statement of your experience in the industry. Lenders in Toronto will typically want to know that you will be using the money for and how it will improve your chances of being successful.
What Types of Industries Can Business Loans Help With?
There are countless industries in Toronto that would be well served by business loans, including:
This list can literally go on and on. If you’re planning to start a business based on your passions or want to expand the business you currently run, a business loan may serve you well.
Read this article if you’re a female business owner or entrepreneur.
What Types of Business Financing is Available in Toronto?
When it comes to business financing, there are several options for you to choose from depending on what you require the funds for and the industry that you serve. Consider the following options:
- Small business loans – Get the funds you need in one lump sum after qualifying and repay in installments.
- Merchant cash advance – Leverage a percentage of your future credit card payments or other receivables streams to get an advance of the funds needed to keep your business moving.
- Commercial mortgage – This is a great solution to purchase property to expand your business.
- Equipment financing – Finance the purchase of new equipment using the actual equipment as collateral, offering you a safe and affordable loan.
- Asset-based financing – Secure an affordable loan by leveraging any of your commercial assets, including trucks, farm equipment, or other commercial assets.
Interested in applying for any of these business financing options? If so, check this out.
Need Financial Help to Start or Grow Your Business in Toronto?
If you’re looking to turn your passion or experience into a successful business or are looking to grow a company you’re already running, a business loan in Toronto can come in handy. If you’ve assessed your finances and determined where you need the borrowed funds to be allocated, get in touch with Loans Canada to help you find the right business loan for you.