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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


 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.

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