How to Get Working Capital in Canada

All over the world, trying to get financing for businesses is increasingly becoming increasingly difficult, and Canada is no exception to this global crunch. Yet for those who wish to learn how to get working capital in Canada, all that’s needed is a lot of persistence and the information as to where to go to secure a loan.

In fact, that’s probably the key information you need to know when you’re learning how to get working capital in Canada. There are actually quite a few sources, and all you need to do is to approach them and send all the requirements they ask.

1.     Business Development Bank of Canada. Of all the banks you can approach for working capital, the BDC is probably your best option. According to Gary Ziegler, founder and chief executive of Calgary e-commerce company eThor, that’s where they got their first money, because none of the other banks were willing to lend them working capital.

The BDC even offers specific types of working capital. For new companies, they offer a start-up financing program of up to $100k in working capital, for small businesses that can show a realistic way of making a profit. The BDC may also offer a market expansion loan to existing companies to enable them to participate in trade shows, come up and launch a marketing plan, or to engage in ecommerce.

2.     Canada Small Business Financing Program. For start-ups and for making improvements, this small business program can provide as much as $500k in working capital. You can apply for this program at any bank, credit union, or caisse populaire in Canada.

3.     Aboriginal Business Canada. If you are of Aboriginal heritage, this program is much better than loan because it’s a grant. As long as you have a viable business plan, you may get as much as $100k.

4.     Micro Loans. Check with your credit union or caisse populaire if they offer this type of loan. The amount may reach up to $15k, and are often offered to those who can’t get a traditional bank loan.

5.     Community Loan Funds. Some non-profit organizations called Community Investment Funds exist to help people who can’t secure bank loans. You may get a loan ranging from $2k to $150k, depending on the particular loan fund.

6.     Small Business Loans for Young Entrepreneurs. Young entrepreneurs, ranging from 18 years to in the mid-30s, can take advantage of special small business loan programs for the youth. As much as $15k may be received in a loan.

7.     Women’s organizations. Some organizations are dedicated to helping women get the funding they need for their business.

8.     Angel Investors. These are investors who want high returns for their investment in your company, and who may also want to participate actively in your business operations to ensure its success.

If none of these sources pan out, then there are always your friends and family. Between financial institutions and your closest kin, there’s a good chance you’ll get some working capital in Canada.

How to Get Working Capital in Canada

All over the world, trying to get financing for businesses is increasingly becoming increasingly difficult, and Canada is no exception to this global crunch. Yet for those who wish to learn how to get working capital in Canada, all that’s needed is a lot of persistence and the information as to where to go to secure a loan.

In fact, that’s probably the key information you need to know when you’re learning how to get working capital in Canada. There are actually quite a few sources, and all you need to do is to approach them and send all the requirements they ask.

1.     Business Development Bank of Canada. Of all the banks you can approach for working capital, the BDC is probably your best option. According to Gary Ziegler, founder and chief executive of Calgary e-commerce company eThor, that’s where they got their first money, because none of the other banks were willing to lend them working capital.

The BDC even offers specific types of working capital. For new companies, they offer a start-up financing program of up to $100k in working capital, for small businesses that can show a realistic way of making a profit. The BDC may also offer a market expansion loan to existing companies to enable them to participate in trade shows, come up and launch a marketing plan, or to engage in ecommerce.

2.     Canada Small Business Financing Program. For start-ups and for making improvements, this small business program can provide as much as $500k in working capital. You can apply for this program at any bank, credit union, or caisse populaire in Canada.

3.     Aboriginal Business Canada. If you are of Aboriginal heritage, this program is much better than loan because it’s a grant. As long as you have a viable business plan, you may get as much as $100k.

4.     Micro Loans. Check with your credit union or caisse populaire if they offer this type of loan. The amount may reach up to $15k, and are often offered to those who can’t get a traditional bank loan.

5.     Community Loan Funds. Some non-profit organizations called Community Investment Funds exist to help people who can’t secure bank loans. You may get a loan ranging from $2k to $150k, depending on the particular loan fund.

6.     Small Business Loans for Young Entrepreneurs. Young entrepreneurs, ranging from 18 years to in the mid-30s, can take advantage of special small business loan programs for the youth. As much as $15k may be received in a loan.

7.     Women’s organizations. Some organizations are dedicated to helping women get the funding they need for their business.

8.     Angel Investors. These are investors who want high returns for their investment in your company, and who may also want to participate actively in your business operations to ensure its success.

If none of these sources pan out, then there are always your friends and family. Between financial institutions and your closest kin, there’s a good chance you’ll get some working capital in Canada.

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Chris Lanchech

Hi everyone, my name is Chris and I am a junior analyst at Neebo Capital and an inspiring blogger. We enjoy speaking with business owners and entrepreneurs who come to Neebo Capital looking for cash flow solutions. Give us a call toll free at 1-888-382-3766 or Visit us online at www.neebocapital.com

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