Blog

Financial Reporting Requirements for small business loans

Financial reporting requirements for small business loans, and continuing financing support after initial business financing is received.
 
Many entrepreneurs in process of rapid expansion and growth of their business, are looking for small business loans to cover cash flow needs, new purchases requirements, new employee hires etc. When lenders are approached, business owners receive a very substantial influx of information that for most unsophisticated business owners is very tough to apprehend. Initial package normally includes, properly prepared business plan, strategic plan, marketing plan and use of proceeds, break even analysis, income statements and balance sheet proformas.
Working capital loans are typically one of the most difficult types of loans to receive.  In order to be able to qualify [...]

Business Financing Reality in Ontario

After receiving countless emails from entrepreneurs following our articles we decided to fresh up and update business owners and entrepreneurs with latest the developments on the business financing market in Ontario. We will discuss the situation with cash flow loans, working capital loans, equipment and renovations loans that exists on the market right now. Also as usual we will give our potential clients-entrepreneurs some pointers and advice on how to approach this types of financing in order not to waste time and money.
It’s not a secret that small business loan financing is a tough market to be in. Most lenders are simply not interested in providing such loans to small businesses due to volatility and risk of defaults.  [...]

Small business loans for small service companies.

This article continues the series of articles discussing different issues and angles for entrepreneurs/business owners looking to expand their business and obtain business financing. Most small service companies have very similar problems as retail and manufacturing companies. Lack of capital and a need for further development and strategic growth. Equity capital or cash flow funds are the most difficult type of loans to obtain through institutional lenders. At the same time this is the most important type of financing that offers opportunity to grow and expand the business quickly.
Most entrepreneurs running service oriented business do this for various reasons. The most attractive points about service oriented companies are: small overheads, orientation on fixed costs monthly expenses, potential to [...]

  • Working Capital and Marketing Capital
    Permalink Gallery

    Working Capital and Marketing Capital financing for small businesses in Ontario.

Working Capital and Marketing Capital financing for small businesses in Ontario.

Working Capital and Marketing Capital.
This article continues the series of articles about the value of properly prepared business plan for entrepreneurs seeking small business financing. In this article we will talk about working capital requirements, marketing capital requirements and financing options available from different lenders.
Working capital, required for the business development in order to execute strategic plan, is super important. Without working capital available, strategic plan simply won’t be implemented, and entrepreneur could waste a lot of time on nothing really. Quite often own cash flow generated by the business is not enough in order to undertake any strategic plans and changes. The same goes for marketing, very rarely business owners can invest substantially higher amounts into [...]

  • Business Financing, Opening day Balance Sheet, Break Even and the Business Plan
    Permalink

    Business Financing, Opening day Balance Sheet, Break Even and the Business Plan

Business Financing, Opening day Balance Sheet, Break Even and the Business Plan

Business plan for any entrepreneurs thinking of applying for small business financing.
This article continues discussing further the need for properly prepared business plan for any entrepreneurs thinking of applying for small business financing in Ontario. Most entrepreneurs looking for development and cash flow needs have to be properly prepared for financing in order to receive it. One of the most important portions of the business plan is opening a balance sheet and break even analysis. Entrepreneurs working on strategic plan, have to work on the Opening Balance Sheet and break even analysis, within their current business reality. They also have to work within the cash flow projections for the next 12 and 24 months period. A properly prepared [...]

Strategic Planning, Marketing Plan, Cash flow plan

Strategic Planning, Marketing Plan, Cash flow plan required for small business loans financing.
We continue to review and elaborate on business plan structures. This includes a marketing plan and cash flow plan required by all financial institutions in order to review a small business loans application. Most entrepreneurs have very small or little idea how to write a proper business plan required to obtain business financing. One of the most important part of the strategic plans is marketing plan. As marketing creates new business that is required for business growth.  We will review major points of the marketing plan and advise further on how to write this in the business plan.
Most small businesses in Canada have very small [...]

Small government guaranteed business loans over $350k

Small government guaranteed business loans over $350k with or without real estate security component
Many of our clients believe that $350k is the maximum they can qualify when applying for small government guaranteed business loans. But there are other opportunities to go above $350k and sometimes above $500k. In this article we will discuss what other options are available when the loan amount needed is above the standard $350k. We will discuss what is needed to satisfy financing requirements that are offered by chartered banks and credit unions offering government guaranteed loans.
Many small business loan clients are looking for $250-$350k for renovations, equipment and operating capital needs. Normally if the company requires more than the above amounts in [...]

Business loan combination with private equity loan

Many of our clients are asking us about small business loan amounts that are higher than those posted on our website WeCanFinancial.ca. In many cases we can accommodate higher loan amount assuming a correct presentation of the deal, financial projections and use of proceeds for the small business loans. But also in many cases it is advisable to implement a combination loan where a portion of the loan comes in from the small business loan program and the other portion comes from private equity derived from the existing home equity or other real estate equity. In this article we will talk about the combination of financing products and we will give good examples on when such combination might make [...]

Financial Planning and Analysis

Financial Planning and Analysis for Business requiring small business loan financing.
Most of our clients coming to us for small business loans advise have very little understanding what needs to be presented to the bank in terms of previous financial results of the company and also future financial results and projections. Important portion of the banks due diligence and assessment of for small business loan applications is 3 year financial projections, proforma balance sheet, and break even analysis for the invested funds to be repaid. In this article we will discuss several important aspects of financial analysis, underline the importance of proper information in the projections and disclose a little bit of what we do to make the deal [...]

Franchise Financing for Food Related Businesses

Franchise Financing for Food Related Businesses 3 major Myths.
Our firm gets a lot of inquires about purchasing and financing a franchise with a small business loans, or government guaranteed loan. Most of them relate to food franchises, most well-known and some less well known. Overall this is a very difficult topic to explore because most people after attending a franchise show, or after hearing a pitch by franchise owners and/or promoters, hear things that do not really exist on the market. Such as easy financing plans available. Or financing with very little or next to nothing money down and so on and so forth. This article is prepared in order to give our readers, clients and future clients [...]