Typically, small and medium-sized start-up businesses require extra capital initially to ensure smooth operations. This situation is not unique to any specific kind of business and happens to all new companies that lack financially wealthy owners.
Whether it is to help with the acquisition of plant and machinery, lease rentals, or employee prepayments, correcting unduly high negative cash flow balances, or any other of the many business leeches; taking loans becomes essential.
Unfortunately, establishing your companies’ or your personal credit history can be quite challenging, and if you have not had the time to establish it to a high degree, securing loans and funding can be a forlorn task, ultimately restricting your business growth. The essence of getting loans means that it is imperative that you are prepared to face the potential lenders, and have a solid understanding of what you are required to present to them for gaining your requisite loan.
- How fast can I get approved for a loan?: With a high and growing number of independent providers and banks, as well as more advanced technologies, applying for a bad credit loan in Canada is more of a cakewalk than a tango. Typically, applications can be filled out within ten minutes, and decisions are almost instantaneous.
Bad credit business loans in Canada could thus be just a few keystrokes away, and would conveniently help you get back on track and keep rolling, all while being more secure when compared to conventional small business loans in Canada giving companies.
- Get help from the government: The Canadian government, having committed to helping small businesses for years, shares some of the risks that the lender takes when they give loans to small businesses, under the Canada Small Business Financing Program. Less risk encourages the lender to approve more and higher amounted loans for small businesses.
The amounts thus raised help start-ups to get the funding necessary to operate, help established businesses with expansions and upgrades, and help start-ups get access to otherwise inaccessible loans, ultimately leading to stimulation within the economy and greater job creation within Canada.
- Put up collateral: If you are still having trouble being approved for small business loans due to bad credit or poor credit history, you should consider getting a secured loan. Termed so because it is “secured” against an asset that you currently own and this type of loan should be taken with caution.
The company or bank would give you a loan and take the ownership or control of an asset that is set as collateral, till the loan is repaid. It is important to discuss the type of collateral that would be acceptable with the potential lender, as well as the risks associated with such financing methods.
Secured loans usually guarantee you get the necessary financing, but you need to remember that in case you default in repayment (which you shouldn’t!), your assets that are set up as security can be seized.