A Guide to Canada Small Business Financing Program
Small businesses are integral for a complete healthy development of the Canadian economy. After some years of recession, we are back in the game with a robust economy and myriad opportunities. However, small businesses still face the challenge of securing financing for starting a business. Here is a guide to ‘Canada Small Business Financing Program’ that aims to help small business owners especially for truck financing Brampton.
What is Canada Small Business Financing Program?
As per this program, the Government of Canada aims to help small businesses to easily get finances from lenders and financial institutions. The government shares the lending risk with the lenders and provide a safety net over the entire transaction. With government at its back, most of the financial institutions are promoting this program.
Main Objectives
- Help promote new businesses and expand business activities on Canadian soil
- Enhance loan facilities to small businesses
- Promote jobs growth in Canada
- Stimulate economic growth
Who is Eligible?
If you already run a small business with annual turnover under $5 million, you can apply for this pilot project from Canadian government. This covers most of the construction, transportation, and services sectors of the economy. Farming and agricultural businesses, farming industry, religious and charitable organizations are all not eligible for loans under this program.
How much Financing is provided?
Finance up to a maximum of $500,000 is provided to business owners. Borrowers are not allowed to spend more than $350,000 on leasing property or equipment. The equipment can be new or used and depends on the borrower.
How do I apply for a loan under this Program?
Numerous financial institutions work under this program to provide credit facilities to eligible businesses. However, the approval of the loan is entirely dependent on the financial institution. So, one has to approach a financial officer of the concerned lender. After reviewing the application, the decision on approval can be conveyed within 48-72 hours.
The interest rates are applicable as per the institution. It can be variable rate or fixed rate. Registration fee and other processing charges are as applicable by the lender. You can be up and running your own business within days.
Starting a Small Business through Equipment Financing
Every businessman worth his salt knows that it is easier to run a business on leasing than through outright purchase. Financing equipment is highly effective to avoid tax liabilities, crippling expenditures, divert money to other sectors and manage operational costs.
There are numerous advantages to financing Equipment. You can save significant money through financing. With a little down payment you can start your business and earn monthly premiums. The money saved through tax deductions can be re-invested into your business. Owners can further earn interest rates and maintain monetary reserves. Most of all, you can use the equipment at a fraction of the cost. Today, financing can be availed within 24 hours. If you have a decent credit score and fill the application correctly, you can be up and running your business within no time. Contact us to know more about the equipment finance Canada. We cover all the equipment and specialize in truck financing Brampton.
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