Personal financials, experience and other requirements for small business loans in Ontario.

//Personal financials, experience and other requirements for small business loans in Ontario.

Personal financials, experience and other requirements for small business loans in Ontario.

Personal financials, experience and other requirements for small business loans in Ontario.
During our latest articles we received quite a bit of inquiries in regards to obtaining start up financing and small business loan financing for existing small businesses. A lot of entrepreneurs in search of operating capital and development seed capital sometimes are asking for too much. Very often business owners have unrealistic expectations on what can be expected from the finance industry. In this article “Personal financials, experience…” we will discuss some of the most important items in qualification process for small business loan financing. has a team of associates with over 30 years’ experience in private equity, corporate finance and small business finance. When it comes to funding small businesses entrepreneurs have to know the basics of institutional requirements and understand what’s reasonable and what’s not. Business plan is super important for any small business loan application, and properly prepared plan can save quite a bit of time and headache. Financial plan needs to be embedded into the business plan as well, and prepared in format acceptable and understandable by the lenders. Marketing plan is a must for any small business financing, and any medium size corporate financing as well. Marketing plan has to include several different marketing avenues, great for development and expansion of the business. Use of proceeds has to be justified, and aligned with real time, live examples of similar financing deals.

Personal financial situation has to be in line with lenders expectations. Entrepreneur seeking financing from institutional lenders cannot expect receiving loan amount higher than his personal net worth. This is different with medium and large enterprise, where corporate guarantee overshadow personal guarantee. But for small business loans, especially government guaranteed loans in Ontario, the loan amount must be less than personal net worth of the entrepreneur borrowing the money. Personal net worth of course may include all business assets and personal assets. Personal assets have to include real estate as a matter of principal for most lenders. Stocks, bonds, RRSP, bank accounts and other rights and properties could be also included as personal assets, if verification of ownership could be provided. will be able to help business owners properly prepare net worth statement in order not to mislead potential lenders and simplify approval process for a small business loan financing.

Business plan always come first. As a matter of fact most of our associates started in this business by writing complex business plans for medium and large sized enterprises seeking complex structured financing products. After hundreds of deals placed, we are well positioned to serve both small and large sized businesses. Over last 12 months we placed loans as little as $50k and as large as $4.2 Million making a prime market mover when it comes small/medium sized finance in Toronto.

Very often entrepreneurs are looking to develop new business models, and try those models on existing or new businesses. Operating capital is always required and most of the time is lacking. Budgeting expansion and development plans properly could be the key in obtaining so needed business financing. Sometimes private equity loan could be easier achieved rather than institutional business financing. This could be related to poor personal credit of the entrepreneur, recent delinquencies and many other factors. has several proprietary private equity funds that could be accessed specifically in these cases.
Private equity funding for business purposes is very common nowadays, when institutions are so tight and hard to get. Hard security is normally required when it comes to private equity business financing. Accessing real estate equity in Ontario is substantially easier than unsecured banks funding, and we are really good at it as well. Over last 12 months our firm placed millions of dollars of private equity loans out, for business expansion purposes, operating capital needs and many other corporate requirements. Some well-known companies with revenues of tens of millions of dollars count on our support on daily basis, and we suggest Ontario entrepreneurs growing their business to follow suit.

Stay tuned for future updates and articles.

Happy financing every one!

By | 2018-02-15T16:19:06+00:00 February 15th, 2018|Blog|0 Comments