Finance Your Business
Financing is one of the biggest challenges for start-up businesses, particularly if you’re an immigrant with a limited amount of credit history in Canada.
Various options for financing your business include:
- Your own savings/cash, which can help you kickstart your business.
- Personal loans from family/friends may be your next step, but be careful about your relationships by not abusing your family/friends’ generosity.
- Your own credit card or line of credit are easy to access, but can come with steep interest rates.
- Bank business loans may be more challenging to get, and you’ll have to show the institution documents like your business plan.
- Business microloans or peer lending available from certain banks are smaller loan amounts to help small projects.
- There is also funding or loans through organizations like the Business Development Bank of Canada, aimed to help the growth of the small business sector in Canada.
- Government grants and financing through the Canada Small Business Financing Program may also be accessible to you.
- Venture capitalists, angel investors or other private investors may be your next option, especially if you’re looking for larger investment amounts. There are several venture capital firms you can approach or find a private investor through networking. But investors not only want to assess your business documents like business plans, they want a defined plan for a return on their investment. They may also want to get involved in operations.