How to Get a Start Up Business Loan in British Columbia?
If you’re planning on starting a business, one of the most important decision you need to make is to how to finance your business. Undercapitalization of your business will prevent it from making optimum use of the capabilities, on the other hand overcapitalization may lead to unnecessary expenses in form of interest and other payments. Hence, when you need to determine the capital of your business, here are some important questions to ask yourself.
- How much total money is needed to start this business?
- How much funds you have available for this business?
- Do you already own any of the assets needed to start this business?
- Do you have family, friends, acquaintances, or others who are willing and able to invest in this business?
- Do you have a strong personal credit rating or business line of credit British Columbia available?
If you want to be eligible for business loans British Columbia, here are some important considerations to improve your chances of getting loan Flow of funds – Your ability to pay back the money you’ve borrowed. The cash flow projection you prepared for your company plan is used to calculate it. Collateral – The amount of assets you’re willing to put up as collateral to guarantee that you will pay back your loan. These assets will be assigned a monetary value, which will be compared to the loan amount you requested.
Commitment – The amount of money you’re investing in your company. You won’t be able to get a loan unless you put in a good amount of your own money. Character: Your own credit score and financial institution history. Your credit rating or score is based on your borrowing and repayment history with banks credit cards, and personal lines of credit. Without a good credit rating, your loan prospects decrease significantly. There are many financial institutions that provide business financing solutions British Columbia to suit your requirements and can even help you to get business loans British Columbia at cheaper rates.