Whether you’re a new business entrepreneur or a start-up company looking to expand further, there are several ways to secure business support and funding. One option for small business funding is loans, which are usually granted to established businesses that can provide security to borrow against and can prove a prior history of credit, stability and financial growth. These criteria set by traditional financial institutions make it hard for a start-up business to qualify, even if it’s only for a small loan, such as for equipment purchase. Add to that bank and credit companies’ reluctance to lend money in today’s struggling economy, and approval for high-risk loans is becoming more improbable. If you want to go down this route then business owners will need to ensure that their business plan is air-tight since this will form part of the basis of the loan application.
Business funding opportunities such as equity is another potential route entrepreneurs can go down. Business angels, or private investors, can provide start-up equity, called seed capital. For young companies, private equity investors are a great source for securing initial financing and capital investment. Business angels usually provide working capital in the range from $10,000 to $40,000, plus business angels offer their business expertise and contacts to help their investments grow.
Once the business is off the ground and proves high-earning potential, then entrepreneurs can seek venture capital, another form of equity in which a group of investors usually pool money in the $100,000-plus range for shares and a stake in the company’s operations.
Canadian Government Grants & Funding
Small business grants are the cheapest way to finance a start-up company but these paperwork-heavy processes can often be headache inducing. Few grants are awarded, and for those that are, the funding usually has to go toward a specific purpose and can take more than a year to be released.
Depending on the type of business that you're looking to start up, there may be some Canadian government funding programs available to support Canadian businesses. Generally, these kind of programs are designed to promote economic development throughout Canada.
Support programs provided by the government of Canada can help certain businesses get off the ground, such as the Canada Small Business Financing Program. Some of the grants that are available from the Canadian government include loans for small businesses or start-ups operating for profit in Canada. Certain industries may not meet the eligibility criteria for these small business loans, but they may have their own government programs that can help with business development. These can be a good option to help support your business needs if your business does meet the lending criteria.
How the Canadian Angel Investment Network Can Help
If you're an entrepreneur looking for financial support, then the Canadian Investment Network can help with your business growth. You can search for investors based in Canada and around the rest of the world. Investors looking to find a business to invest in can find entrepreneurs based all around Canada, including major cities such as Toronto, Ontario, Montreal, Quebec, and Calgary , Alberta and other provinces such as British Columbia.