The province of Ontario in Canada is perhaps the best when it comes to opportunities for entrepreneurs and business owners. Besides your own dedication towards the job, we believe that the environment in the host city can also play a significant part in ensuring the success of your business. Silicon Valley startups, for instance, have access to tech incubators, which is why they go on to become successful ventures. However, startups in Ontario have a significant chance of success as well.
The success of Ontario as a business-friendly province can be gauged by the fact that it is host to some of the most successful companies across the globe. The general business environment in the province is exceptional, and it gives businesses a fair chance to experience growth and achieve the laurels that they have in mind. The business-centric environment of the province means that there are several ways startups can raise capital or borrow money to stay afloat. With the multiple opportunities in the province, small-scale businesses are unlikely to go bankrupt due to liquidity crunch.
We believe that the amazing investment environment in Ontario has much to do with the general and long-term economic and political stability. Investors realize they are investing in a market that won’t change drastically in the future and that their investment is safe here. For this very reason, the investment system in Ontario is one of the best across the globe.
Business Funding Options in Ontario
Having shed enough light on the investment scenario in Ontario, we will move on to listing down some of the options you have for small business funding within the province.
If you’re running a small business in Ontario and your cash reserves are depleting, you should consider the following options to raise funds.
Banks within the province have streamlined their processes, and they’re offering new entrants and small businesses the funding they require to expand their operations. Banks within Ontario have multiple funding plans for all business owners. Bank funding especially come in handy during a liquidity crunch, and they are ideal for the day-to-day operational needs of your business.
The banks famous for their business funding in Ontario include RBC, CIBC, TD, BMO, Business Development Bank of Canada, and the Bank of Nova Scotia.
All of these banks happen to have their own qualification procedures that they follow for ensuring seamless processes and operations. The qualification processes are meant to gauge your eligibility for the funding and whether your business is currently capable of paying back the amount. You can negotiate the funding terms with your bank of choice and even extend your funding to a limit of $1 million, if possible.
While there are many pros to bank funding, the downsides can be quite scary. The biggest flipside has to be the minimal approval rate. Not everyone can get an approval for a bank funding. You need to be careful that you meet all the qualification requirements before you apply. You wouldn’t want to waste your time in the qualification process, knowing that the amount cannot be funded to you.
Banks are usually only comfortable in funding money to businesses that have been operating for a significant period of time and are generating a flow of revenue. As a result, a large number of new entrants find it extremely difficult to apply for bank funding.
For instance, if you’ve recently opened a restaurant a year ago, you would not qualify for bank funding because of lack of experience.
Feel de-motivated? Well, thankfully there are other options worth considering.
Online Business Funding Providers
As you would have guessed by their name, these funding providers operate online and offer funding for small businesses with minimal strings attached. The whole process happens online, and you wouldn’t have to run around from place to another to get your forms filled out by the relevant individual.
The online world has given exemplary convenience to businesses, and this source of finance is just one of them. Online funding providers offer different types of small funding. If your business needs cash immediately, these organizations can help you out.
However, there is a flipside to online funding providers as well. Obtaining funding from these funders is not a long-term solution to boost your cash flow position. The interest rates can be a bit higher, but the approval rate is high and the funding is processed quickly. You can get funding approved and passed within a 24-hour period, which is exemplary.
Ontario has several financial institutions and other organizations that offer secured funding. These funding are ideal for small businesses that have some assets on hand, but they need more. When you opt for secured funding, you will have to offer one or more of your assets as security. In the event you fail to repay the funding, the funder will have the authority to sell off your asset to recover the principal and interest payments owed. Another feature of secured funding is that they are a type of specific borrowing. This means that you can only use the funding for the purpose for which it is obtained. Obtaining a secured funding is a good way to raise money for your expansion plans, but you must have something to offer to the funder as security.
Crowdfunding can be a good option to gather funds from general public, especially those individuals who show an interest in your business. Crowdfunding involves marketing your business idea in front of an audience, where the sole aim is to gather investments for your business. Ontario is host to all kinds of crowdsourcing opportunities, both online and physical. The investors will analyze your business idea and invest in it if they can see a good return in the future.
Categorised in: Blog
This post was written by sharpshooteradmin