Government of Canada provides financing to individual who willing to start a business.
Different kind of government financing are:
- Grant and contribution which don't have to be repaid
- Loans and loan guarantees which do have to be repaid
New immigrant and between ages of 18 and 39
Business Development Bank of Canada(BDC) offer business a loan to start up their business up to $15,000
The loan is repayable over 3 years, with interest-only payments in the first year.
Canadian resident and between 18 and 39
If you have a good business idea you are eligible to get $15,000 to start or run a business full time.
You can not use this fund to repay a debt, You need to repay the loan and pay administration fee.
They usually have a fix interest rate and must be repaid in a specific period of time.
You will be asked to prove an asset to secure your loan. The asset can be building, real estate, equipment and accounts receivable.
Commercial loans:
Financial institutions provide commercial loans to businesses.
Generally have a specified period for repayment, usually ranging from three to five years. They also usually have a fixed interest rate.
You will be asked to provide an asset to secure your loan. If you are financing the purchase of an asset, then you can usually use that asset as the collateral. If you are looking for working capital or a business expansion loan, then you will need to put up assets that you currently own as collateral. This can include buildings, real estate, equipment and accounts receivable.
For more information visit http://www.canadabusiness.ca/eng/page/2848/
Contact me at info@sarvaccounting.com for more information