Start Up Business Loans (Unsecured)
Small Business Loans from $100k-$150k
Suitable candidates for Start Up Business Loans : Non-food related start-ups, requiring capital for equipment purchase, marketing, initial set up and operating cash.
1. Good credit of the business owner(s) BCN score of 650 and up.
2. Good net worth of the business owner, preferably higher than the loan amount requested.
3. Evidence of experience in the field related to the newly launched business.
4. Business plan.
Start-up unsecured loan is one of the most common and also difficult loans to qualify for. This product does not finance food related businesses due to the fact that 7 out of 10 food related start-ups shut the doors within first 16 months of operations. This product also very often requires a proof of revenue generation before the money could be disbursed to the applicant, the only exception to the rules is heavy equipment purchase, such as machinery, trucks/trailers, where tangible security (meaning equipment) is attached to the loan and therefore our experts could obtain exception to proven revenue generation requirement. For the applicant it is utterly important to prove a significant net worth, preferably higher than requested loan amount. Banks generally don’t want to issue unsecured loans to individuals who could not prove success of earning money, normally they would like to see a net worth at least slightly higher than requested loan amount.
Therefore we normally suggest applicants who are applying for start-up unsecured loans to try and utilize business loan funds to equipment purchase purposes, and less for operating cash and other needs.
Also credit score requirement is treated with extra diligence for start-up loans. Previous collections, consumer proposals or bankruptcies pretty much guarantee that application will not be accepted. In many such cases we advise our clients to find a guarantor/partner for the application and obtain financing based on partners application in order to make sure that credit requirement is satisfied. Due to complexity and number of various tricky questions and issues arising in start-up applications we strongly advise our clients to engage us at early stages in order to avoid mistakes and disappointment. If something is worth doing it is worth doing well, let our team show you how!!