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.