With your business plan in hand, and your business set up legally, you can start looking for financing. These links can help you get started:
- Read BDC's Start-up financing sources article, or check out this article on Demystifying your banker for an idea of what bankers look for and how to increase your chances of getting a loan.
- Look into BDC's financing package designed especially for new businesses.
- For an all-in-one site on financing your business, try Canada Business and its section on Grants and finances.
The most common sources
- Financial Institutions: loans from your current bank or other institution. You don't have to restrict yourself to one source. In fact, it can be to your advantage to diversify.
- Personal investment: cash or assets that you invest yourself (normally a condition to obtaining a loan).
- "Love money:" loans from family or friends, to be paid back when your business is profitable.
- Investors: most investors, like venture capitalists, look for knowledge-based businesses with high growth and profit potential.
- Government grants/subsidies: look into these, but be aware that most have very specific eligibility requirements.
- It pays to compare what different banks offer, but be sure to look at the whole package (collateral required, conditions, repayment schedules), not just the interest rate.
- You may want to check out your personal credit situation according to Equifax or Dun & Bradstreet.
Content in this section is provided in partnership with the Business Development Bank of Canada. BDC provides entrepreneurs with financing, venture capital and consulting services. To find out more go to BDC.ca.