If you need some funding for your small business then you may be wondering where to start, as well as how to find, the best options and most competitive rates (especially when you’re browsing through small business loan options).
Indeed, getting funding for your startup can seem like a daunting task. At the same time, there are a variety of financing options available if you know where to look. Luckily, we’ve done the research for you.
Where to Find Startup Loans in 2020
- Startup financing loans. Canadian startups can apply for a startup financing loan through the Business Development Bank of Canada (BDC). This loan is specifically designed for startups in the first 12 months of business and can be used to help launch and grow the business. In order to qualify for a BDC loan, you must have a business plan in place, have experience in your field, provide personal and credit references, and show market potential.
- Microloans. Does your business have a social enterprise slant and community focus? You may be able to get approved for microloans from Community Micro Lending. You can apply for the lender’s “Start-Up Loan” of up to $5,000 or, if you’ve been in business for more than a year, you may be eligible for an Expansion Loan of up to $10,000. In order to qualify for this microloan program, you must be an aspiring or current entrepreneur located in the Southwest BC area.
- Non-Profit Micro-Lender Non-profit micro-lenders focus on small businesses that have the potential to provide an economic impact in the community or businesses that can leverage these small loan amounts into a big impact within their businesses. These micro-loans often include very favorable loan terms along with very low or even no interest, along with advice and mentoring to help business owners build successful businesses. Micro-lenders are found in communities across
- Government financing. If you want to get your startup off the ground, you’ll be happy to learn that there are many different government financing options available. The Government of Canada, for example, offers several different types of small business loans. These vary depending on industry, demographics, and location. For example, loans range from the Aboriginal Business and Entrepreneurship Development financing to FACTOR funding for the sound recording industry – and lots of options in-between.
- Credit cards. Now, here’s a lending option that you may already have access to: your credit card. While credit cards aren’t an ideal funding source, you can use them if you need to purchase products and equipment for your business – perhaps while applying for other small business loans. Just be aware: credit cards may have sky-high interest rates. With that said, there are special business credit cards that may be a good fit for what you need.
- Crowdfunding. Crowdfunding has become a popular way to obtain capital to start a new business in recent years. If you can motivate individual members of the crowd through an online crowdfunding portal to contribute to your idea, you can capitalize a new business or a new idea. What’s more, it’s the idea that motivates the crowd, not how many years you’ve been in business or your credit profile. Using sites like Kickstarter, IndieGoGo and specialized platforms like iFund Women (you guessed it: for female founders!) you can share information about your project and garner support from friends, family, and colleagues. Usually these sites take a fee for posting your project page, but the money you can raise will hopefully offset those fees.
- Family and friends. If you’re lucky, you may have a family member or friend who is willing to provide funds to help you with your startup costs. On one hand, this can be great as there is less red tape and hassle to get you your much-needed cash. On the other hand, if things go awry, you may lose more than your investment.
- Small business loans from online lenders. If you can’t get approved for a traditional bank loan and you don’t want to hit up your friends and family, you still have another great option for a small business loan. You can apply online with Sharpshooter Funding. Best small business funding options in Canada.
If you’re a startup founder looking for funding for your business, there are many options out there. Using this guide, you can check out the various resources that are available to you and find a small business loan that suits your needs. But remember: be sure to apply for a loan with reasonable interest rates and repayment terms. This way you can pay back the loan on terms that work for you while focusing on growing your business.
Canada Small Business Funding Resources:
- Sharpshooter Funding: funding Canada’s small and mid size businesses. Short and long term loans, lots of options available, Apply online or contact their expert staff.
- BDC business loans
You could get money to help you start or grow your business.
- BDC Buying a business
Find out how you could get financing to buy an existing business.
- BDC Capital
Access a wide range of specialized financing to match the various stages of growth of your business.
- BDC Indigenous Entrepreneur Loan
As an Indigenous entrepreneur, you could get money to help start or grow your business.
- BDC New Canadian Entrepreneur Loan
Only Applies to : CANADA
As a new immigrant to Canada with little to no credit history, you can apply for a repayable loan of up to $50,000 to start a business.
- BDC Small Business Loan — for existing business
Only Applies to : CANADA
Get a loan of up to $100,000 within 5 business days. There are no application fees or hassles and the entire process is online.
- BDC Start-up financing
Learn how you could get a loan to start or buy a business or to buy property or equipment to set up your business.
- Canada Small Business Financing Program
Access funds for your small business with the help of this loan guarantee program.
- Canadian Agricultural Loans Act program
Find out how this loan guarantee could help you secure credit for your farming business.
- FACTOR funding for the sound recording industry
If your business operates in the English sound recording industry in Canada, you could qualify for funding to support various business activities.
- Farm Credit Canada — loans and lending options
You could access flexible financing options for your farming, agri-food or agribusiness operation.
- Futurpreneur Canada Newcomer Program
If you are between the ages of 18 and 39 and have lived in Canada for less than 60 months you can apply for financing to start a business.
- Futurpreneur Canada Start-Up Program
Are you between the ages of 18 and 39? If you are a Canadian resident with a good business idea, you could get $20,000 or more to start or run a business full-time.
- Prince’s Operation Entrepreneur
If you are a transitioning Canadian Armed Forces member looking to establish a small business, this program could be for you.
- Women in Cleantech Challenge
Are you a female entrepreneur looking to put your cleantech idea into action? You could get funding and support, while competing for $1 million.
Tags: Business Loans for start ups, Canadian Start Up Funding, Start Up Funding
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