Financing for Businesses

You are about to realize the dream of a lifetime : starting a business. For a company, particularly a start-up one, financing is a crucial step, essential to the survival of the business. For your project to be successful, a variety of options are offered for you to acquire the necessary funds.

Business growth funding

Bank loan

Self-explanatory, this term means to loan a specific amount to the bank in order to finance customer accounts, inventories, purchase of equipment or other expenses related to the business. It is an easy path; however, it has its limitations, particularly when it comes to your borrowing capacity.

Equity financing or investments

You may want to find a potential investor for your business. He will provide you with a specific amount in exchange for a percentage of the shares of your business. The investors can be useful to you, in both the starting and growing phases of your business. Essentially, they must believe in your project and foresee a potential for future revenues.

SRED Tax credit program

With the scientific research and experimental development program (SRED), you acquire the necessary support for the development of your projects. This program is designed for all Canadian businesses that wish to effectuate research and development, and it is administered by the Canada Revenue Agency (CRA). To date, it is the greatest source of support from the federal government in this area.

Tax credits financing

For an expanding business, each dollar counts. A firm acting as a lender may offer financing of refundable tax credits in an efficient manner. This way, the business does not have to wait to receive its tax credit, and it may benefit from the resulting capital immediately. The lending firm then recovers the amount of the loan when you receive your refund, some time later.

The lending firms may provide you with these funds due to their bank funds, in addition to the help obtained from insurance companies as well as other interested investors. An executive board ensures the conformity of everything. This board includes prominent business people you can have confidence in.

Depending on the firm you will choose, a variety of products are available to you. These firms work closely with the leading financial institutions as well as with a number of consultants in scientific research and development, to ensure an exceptional service that meets your expectations.

In any event, it is important to meet with your financial consultant for any question related to your business finances. With you, he will be able to establish your balance sheet as well as your borrowing capacity and strength. He will also provide you with the necessary information about the governmental programs you are eligible for. For any information, do not hesitate to communicate with your trusted firm. The experts you will consult will definitely be able, with their judicious guidance, to assist you to make informed choices.


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