Corpcentre's Blog

April 7, 2010

Tips for Business Financing

The bottom line is that most businesses need some type of financing, if you don’t have enough personal capital. There are numerous options available in today’s market. Before borrowing from any source, conduct thorough research to learn how much the loan will actually cost and if that is the best option for you.

Before you approach any type of lender, you will need to prepare or update your business plan. Every lender needs to be convinced that you have the ability to repay the loan. A well written, detailed professional business plan will demonstrate to the lender that your business will indeed generate profits to enable repayment.

In some cases, a lender may require more collateral than the business can offer. The business may seem to have potential but the actual projected profits are slightly questionable. You may be asked to put up personal assets (car, home, personal investments) as additional collateral for your business loan.

Keep in mind that lending money is based on assessing risk and return. You may seem like a terrific person but that will only get you through the pleasantries of meeting with the lender. Getting down to the issues, the lender is in the business of lending money and making a profit from that loan. Therefore, you will have to demonstrate that your business does not present a risk and, moreover, that the loan will be guaranteed and will yield the return that the lender is interested in earning. Anything less than meeting the lender’s expectations may result in not securing the loan or investment.

As a business loan or investment can be quite complex, and there are various tax issues to be concerned with, both personal and business; so it is most advisable to discuss all your options with your personal tax advisor. Although your business may need an immediate influx of cash, take the time to examine and consider the best options for your needs.

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March 12, 2010

More Capital for Women Entrepreneurs in Canada!

Let us not be fooled! In this era of civil rights and equality for all, women entrepreneurs are still fighting an uphill battle with the business community. For the last 18 years, a federally incorporated, non-profit organization known as “Women Entrepreneurs of Canada” has been dedicated to serving the interests of established women in business.

In Canada, 40% of all new start-up businesses are owned by women. Across the nation, Canada’s top 100 companies account for 1.5 million jobs. In comparison, companies owned or led by women account for more than 1.7 million jobs. Furthermore, the number of women-owned start-ups is growing at twice the rate of those by men. The list of comparative statistics goes on but the point is crystal clear. Women entrepreneurs are major players in the Canadian business market. Yet, despite their numbers and influence, women in business still play second fiddle to their male counterparts.

This point is driven home quite clearly when women seek capital for development and growth of their businesses. One reason for the restrictions on capital available to women is the tendency of women to own and operate smaller businesses that are slower to grow and are considered higher risks such as retail and service.

Be that as it may, Women Entrepreneurs of Canada have called upon the Prime Minister to realize the plight of women in business and to address the needs of this substantial segment of the population accordingly. They recommend that the federal government develop an economic assistance program aimed at women owned small and medium sized businesses. Furthermore, they propose that the government develop support programs for women to provide access to technology and management training. This support should also finance and promote international women’s trade missions.

Aside from government action, women entrepreneurs should form business alliances to share information and resources as well as establishing joint ventures to bid on large contracts. Women in the business world should share information as much as possible and use their contacts and knowledge to help others advance the cause of women entrepreneurs across Canada.

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