In Canada there is financial assistant program with the name of small business loans, that helps the small business owners to stand their businesses. For business loan the owner has to share his/her risks with the lender so how he/she can get the financial help to improve the business development. Since last few years the financial institute has helped the more than 63,000 business in standing with more than $9 billion.
Eligibility Criteria For Small Business Loan
There are no strict eligibility criteria for the small business loan in Canada. If your business is making the revenue less than $10 million annually then you can apply for the small business loan. We have to clear one thing that the loan is just available for the business purpose, not for the charity organizations, religious organizations or farmers.
How You Will Get The Small Business Loan
There are only four steps you need to follow for getting the small business loan without facing any problem.
Fill The Application Form
First of all contact to finance officer of any bank or the financial institute, then they will ask you to fill the application form, the form can be offline or online. In the form you will need to personal details and the business purpose.
Wait For The Review
Once you will submit your application form, the finance officer and team will review your application form and business plan, as well as attest your documents you will provide along the application. After review the officer will decide you either you are eligible for loan or not.
Complete Paper Work
After the approval of application you have to submit the important documents such as business license, land or building papers, copy of National ID card and the agreement paper. You also have to provide the security in the form of assets.
Receive The Loan Amount
Once you have completed the all formalities, you have to receive your money. There is a deadline for receiving the money. Mostly the financial institutes are offering the two days for receiving the money. So we suggest you collect the loan immediately once you get the message from finance officer.
How You Can Use The Financial Loan
You can use the financial loan in Canada for the following purpose
- Small Business loan in Canada can be use for purchasing of new land or building or you can improve the building or land.
- Financial loan in Canada can also used for purchasing the new or used equipment, such you can use the money for buying the car for official purpose.
Interest And Registration Fee On Loan
The registration fee for a Canada business loan is standard which is 2%, whenever you will receive the loan amount you will get after the cutting of the registration fee For example if you a lot $100K of the loan then $2K dollars will cut down from it on the time of receiving money. Lets talk about the interest, the interest is variable it depends on the lender. Normally lenders charge the interest at the rate of 3%. For example if you get the loan of $100K then on the time of return you have to pay the $103K to lender.
Terms And Conditions Of Small Business Loan
The terms and conditions of small business loan are standard. You have to take your assets to lender as the security, even more the lender can also ask for the additional security if the lender feel insecure with the person. For more details and queries you can contact the customer support of the financial institute or bank, they will guide you completely about small business loan.
There are few restrictions on using the small business loan.
- You cannot use the financial load for paying the fee of the franchise, you can just use it for the purchasing the name of the franchise.
- Small business loan is not for the research and development process.
- You are not allowed to use the loan amount more than $350K for the purchasing purpose i.e. purchasing of new or used equipment, purchasing of land or building, purchasing the name of the franchise, and etc.
