The Loans Canada team sits down with Gary Schwartz of the Canadian Lenders Association to talk about open banking.
Business Loans Prince Edward Island
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Written by Bryan Daly
Best Business Loans Prince Edward Island (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.
Among the residents of Prince Edward Island are plenty of business owners who could definitely benefit from a solid business loan. If you’re one of those owners, rest assured that there is a business loan for you. Not only that but when you apply with Loans Canada, you can take advantage of other business financing solutions.
To learn more about these options, click here.
What Can I Use My Business Loan For?
Since business loans come in the form of liquid cash through direct deposit, you can use your loan to finance almost any part of your business, including but not limited to:
- Training and paying your employees
- Repairing, improving or renovating your current or future workspaces
- Financing your marketing strategies (advertisements, online portal, etc.)
- Purchasing the right supplies (furniture, equipment, training tools)
- Purchasing, repairing or upgrading any company vehicles
- Paying your business permit, property taxes, and any other business-related fees
Looking for a personal loan in Prince Edward Island instead? Read this.
What Should I Know For the Application Process?
Organization and financial strength are key factors when it comes to the business loan application process. Above all, your lender wants to know that you have a high likelihood of paying them back in full by your negotiated due date. Therefore, some important parts of the application process will include (but aren’t limited to):
- Confirmation of your identity/residency
- A credit check
- An income check
- An evaluation of your business plan (not always required, but certainly advised)
- An evaluation of your assets (if any)
- An evaluation of your cosigner’s financial profile (if any)
Look here to learn how to use your assets for secure funding for your business.
What if I Have Bad Credit?
In Canada, credit scores generally range from 300-900. The closer your score is to 900, the more worthy of credit you’ll be. If your credit score is 620 or lower, however, you’ll be under the “bad credit” category. If that’s the case for you, it can be hard to earn both approval and a reasonable interest rate (a high rate can cost you more over your payment term), as your lender will consider you risky.
Wondering if you can beat your lender’s interest rates? Find out here.
Don’t worry! Here are some techniques you can try for a more positive outcome:
- Look for an appropriate lender – Some lenders cater specifically to borrowers with bad credit. While interest rates are likely to be higher, approval will come easier than it would if you were to apply at a bank or other conventional lender.
- Review your own credit – Pulling a free yearly copy of your credit report from Equifax or TransUnion is a good way of seeing your own credit health. You may even find errors that affect your credit and therefore need to dispute them. Need to dispute an item on your credit report? Here’s how.
- Avoid applying multiple times in a short period – “Hard inquiries”, performed when a lender checks your credit, cause your credit score to drop. They also make you look irresponsible if you applied multiple times within a few months.
- Pay your debts – One gradual but efficient way of improving your credit score is to pay off all your current credit account bills (credit cards, lines of credit, etc.) and continue to do so in a timely fashion for a few months prior to applying.
Need more information about bad credit loans in Prince Edward Island? Look here.
Do I Need to Be Part of a Specific Industry in Order to Be Approved?
Absolutely not! Depending on your lender, your business plan, and your financial ability, you can receive a business loan for almost any kind of profession, such as:
- Farming industries (livestock, fruit and vegetable, grain, etc.)
- Law practices (private firms, pro-bono clinics, etc.)
- Physiotherapy clinics
- Personal or delivery transportation services
- Cooking or service industry professions (restaurants, cafes, bakeries, bars, etc.)
- Hospitality services (motels, bed and breakfasts, vacation rental companies)
- Fitness clubs and gyms
- And many more industries!
What can I do to increase my approval chances for a business loan in P.E.I?
Do I need a business credit score to get a business loan?
My lender requires a business plan. What should I include in it?
For Business Financing and More, Contact Loans Canada
If you’re a Prince Edward Island resident and you’re looking to do right by your business, Loans Canada has plenty of solutions for you. All you have to do is apply and you’ll be on your way to better business financing.