For many of us it is often our personal financial management that we are seeking to improve. With that being said, one thing’s for sure bad credit can quickly creep up at times, making managing these responsibilities highly troublesome In addition to personal finances, there are also many individuals who also are juggling small businesses – and must maintain their credit and keep up with these financial demands as well.
If you have a small business, have poor credit, yet still need to access some additional income – there are several places that you can look to to secure the loan you require. If one does not pan out, it is good to know that you do have options and in fact there are more and more loan providing opportunities you can rely on these days to fulfil your small business credit needs.
1. Banks & Credit Unions
There are many Canadian Banks that offer small business loans. The Royal Bank, CIBC and TD Canada Trust for example, have loans that are geared towards individuals seeking out this type of financing. Some of these loans can provide loans up to $500,00 – or as low as $10,000. While there may be certain eligibility requirements – a good credit score being one of them, if your credit is not solid enough for loans approval through these major financial institutions, then turing to a credit union may be a more viable option.
Credit Unions, not unlike other banks can offer loans to groups of individuals at competitive interest rates. Unlike banks, on the other hand, credit unions are non-profit organizations and while this may mean that some rates and fees may be somewhat higher on various products and accounts, they typically do offer lower interest rates on loans. Credit Unions run based on membership eligibility. For example, there are credit unions that may have a membership that includes teachers, or certain religious affiliations. Other unions will have a membership based on geographic residency, as well as other requirements. Either way, there are small business loans options through credit unions that can be a good alternative to traditional banks.
2. Private Lenders
There may also be small business loan opportunities that exist from the private lending sector. The way that this can work is that certain investment companies or larger businesses look to offer financing to smaller businesses. These private lenders will typically determine if your business will be a successful investment for them. Preparing a thorough business plan, outlying what you are selling, what new market you are entering into, and so can help set you apart and allow you to demonstrate your ability to be a worthwhile investment and financial opportunity.
Private lenders can also be found through online sites. There you may be able to find businesses or individuals who offer alternative lending services to other companies or small business owners. Here interest rates and terms will likely be negotiated on an individual basis and to range depending on the lender. However, if traditional banking loans are not an option for you, this financial route could still help you to keep your small business goals moving forward.
3. Government Loans
Another option for securing the small business loan you may need can be achieved through various government financing options. Small business loans obtained through government resources are becoming more prominent in Canada. The government has realized that more entrepreneurs are seeking, yet are also being met with various financing barriers. Whether as a small business owner, you are looking to increase your capital, grow the size of your company, expand and update your equipment and technology, and so on, government loans can help with these specific goals. If you are interested in looking at small business loan opportunities from the Canadian government, more information can be found on the Canadian Small Business Financing Program site: http://www.ic.gc.ca/eic/site/csbfp-pfpec.nsf/eng/home.
There you will find loans that will be specific to various provinces, as well as participating lenders that you can look to to see which loan may be the best option for your current and future business needs. Ultimately, these loans typically offer features that extend beyond the traditional financing options found elsewhere.
Bad credit does not need to be synonymous with loan rejection. There are many alternative loan options that can help you secure the financing you need to keep your financial dreams alive and well.
If your dream is to either create your own small business or help your small business to experience mobility and growth – then knowing where you can look for additional funding is extremely important. If one loan avenue does not pan out – keep looking. Keep examining your options and see which loan opportunity may be the best fit for you based on your current financial situation.