Posts Tagged ‘Business’

The government small business loans in Canada. We are talking oor’n some straight facts around ‘ SGB’s financing in Canada. We have all heard of the story: businesses in the SME sector account for large portions of the Canadian economy in jobs, income, and tax generation.

In Canada Industry Canada is the government department / organization that sponsors and administers the SGB program.

The SGB small business loans program allows for maximum financing of 500,000.00$ , however that amount is limited to real estate. The limit for financing of equipment and leasehold improvements maxes out at 350,000.00$ .

The program stel’n maximum interest rate of 3% over the bank prime rate. In contrast with a similar program in the U.S. (In the U.S. it’s called the ‘ SBA ‘) the SGB program does not cover cash loans, working capital, business lines of credit, etc. It’s a popular and unfortunate misconception when it comes to businesses that are looking to other forms of financing.

One area of clarity that we explain to clients is that both corporations and individual business owners, d. w. ours property, may be eligible vir’n SGB Loan.

Why is SGB loans so popular then? We will quickly add that they apply to any business which the actual or projected revenues under 5 Million dollars per year. The popularity is derived from the simple fact that businesses in the SME-sector is tradisioneel’n tough time raising capital… of any kind!

Without strong financial statements or hefty net worths and warranties of the owners there’s a real financing gap in Canada when it comes to the term loans and access to capital .

In Canada, the SGB program is administered, as we have said, by INDUSTRY CANADA . But it is not your key contact for any loan application. It is your bank, which administer the program on behalf of the government. It allows banks to provide maak’n valuable dimension to business financing in Canada to the small business sector.

So, what in fact is the requirements of the program? In essence, you need to bied’n healthy and viable business plan that toon’n reasonable expectation of profit and of course cash flow generation – which is of course that the loan is repaid.

The business owners bied’n guarantee limited to 25% of the amount of the loan. That in itself’s a great thing, given that the majority of business financing in Canada requires 100% owner guarantee. As a business owner to apply for what he SGB program that you should be able to demonstreer’n good personal credit history and we can only noem’n “reasonable’ personal net worth. Things like om’n homeowner and with some savings, etc. definitely help the cause.

a few important business relationships must be satisfied in your business plan and financial projects – they revolve around the debt-to-equity and working capital calculations. Your business advisor or accountant can make sure it is properly presented.

Government Small business loans totaling in the billions to almost 8000 businesses annually in Canada. Talk with a reputable, reliable and experienced Canadian business financing advisor who can help you in finalizing your access to one of the best programs in Canada when it comes to finance for the small business sector.

We can verskaf’n some different ideas about how to koop’n business in Canada? This is what we were asked recently in an interview that we have to be one of Canada’s leading locations for entrepreneurial success of the business. We think we can, so here’s a recap of the interview. Let’s dig in.

1) What are different ways to koop’n business?

There is numerous ways to the purchase ofâ business vanuit’n financial perspective. They include a vendor take back from the owner, the Canadian Small business loan from the government ( for trade up to 350k) , bank financing for companies that have the assets and cash flow, asset-based lines of credit who earn money to the assets in the business you are purchasing, etc. The type of financing that you use the transaction together is based on the quality of the company you buy from, the personal and business credit of yourself, the size of the transaction, and the borrowers overall perception of risk.

2) How can you evaluate as a business successful?

There are actually two things you have to focus on when the evaluation ofâ potential businesses success. One is, of course, the actual financially, the other is just the insights you need to get into the business beyond the numbers.

Although any financial analysis for business purchase is indispensable bit of beide’n art and a science it is waarskynlik’n little easier than the non financial person might think. And if you nie’n financial type that you can of course rely op’n Canadian business financing advisor, your accountant, lawyer, etc.

a good way to get the size of the financial statements of the business is to just to use what we call ‘ trend analysis ‘. Neem’n some important statistics of the numbers and “spread” them out. They may include sales, changes in a/R and inventory levels, fixed asset growth or do not grow, and the levels of external debt and creditors.

Some of those who do not have financial problems can include analysis of the profit, (or the lack of it!), any problems with lenders and suppliers, the management that is in place, and the way the company marketed and sold its products.

3) What are the pros and cons of the purchase ofâ business?

Companies that have all sorts of problems can often buy vir’n good price. Of course, similar to the stock market there’s a reason why the price for the company (or stock) is so low. Typically they are perhaps losing money or not genereer’n many of the profit, or has some real challenges in the generation of income.

4) What are the different types of businesses that you can buy?

In many ways to the amount of the stocks or your own capital will ry’n final decision to koop’n business. That relates primarily to the size of the enterprise also. In fact the business acquisition industry has some rules of thumb around what you can in fact afford. These typically are called “multiples”, and is based around financial metrics such as sales, or book value of the assets, or cash flow, or … combinations ofâ some of that. Quick example to explain our point? In older times you can often purchase ofâ manufacturing business vir’n multiple of 50% of sales (not juis’n “several” but you get out of the point! Ride mfg. business with sales of 2 Million usd could be typically buy for 1 Million dollars – the acceptance of all the planets in line. (Sometimes they don’t)

5) What is the first thing you should do after the purchase ofâ business?

There’s a great quote by Rod Laver, the tennis player , who once said: “YOU ARE the MOST VULNERABLE is WHEN YOU BEFORE! So after you have in fact has a firm focus op’n smooth transition. Which can include employee issues (quite often they do not know the company sold), the great customer perceptions, Supplier relationships, and your ability to put in the financial controls which allow you to understand what’s going on in the business.

you Can purchase ofâ business successfully in Canada? The answer’s a resounding YES! If you have the right information, team, and strategy in place. Seek out and talk with a reputable, reliable and experienced Canadian business financing advisor who can help you with your overall business finance needs.

Tourism is not the only draw of Canada. As a very progressive and wealthy country, foreigners also sometimes come here to look for work or begin’n business. It is easy to see that most Canadians live comfortably, and that there are opportunities for foreigners om’n to make life in the country. It is one of the reasons why the country’s a melting pot of cultures from all over the world.

There is no special visa of’n travel document required for people who just want to explore business possibilities in the country. A regular temporary resident visa will suffice, which means that you can also use your Super Visa (which moet’n relief given the cost of Super Visa insurance and other necessary requirements). In this case you will not have to use business as your reason for the visit of the country since as a Super Visa holder it is assumed that your main goal is to be with your children or grandchildren in Canada. You can therefore stay for as long as two years. If you nie’n visa yet though, and you do not come ofan visa exempt country, you should just say that you are coming to Canada for business purposes. But don’t expect to be allowed to stay for two years op’n business visa.

As a business visitor, you are expected to stay vir’n maximum of six months in Canada. If your stay exceeds that period of time, you may have to apply vir’n work permit and change your status to that ofâ temporary worker.

You will also be required to comply with the other requirements for temporary resident visa applications: a valid passport, proof of financial independence while in Canada (which you can pay for your expenses while in the country), and prove that you are nie’n criminal of’n security or health risk. The visa officers will also ask for other documents that will indicate that you intend to return to your country of origin after six months. Visa extensions, as mentioned above, is geensins’n certainty.

Business visitors are also required to show that their main source of income is from their own country of’n third country. Entering the country to look for work is generally not allowed. However, you are allowed to offer supervisory or after-sales service. With a business visa you are not allowed to provide labor om’n Canadian company as it means that you are paid deur’n Canadian employer, who is only permitted with a work visa.

Foreigners are allowed to conduct the following business activities, as stated by CIC (Citizenship and Immigration Canada):

1. Attend business meetings, international conventions, and conferences held in Canada.
2. The purchase of goods or services of the country and pay for their shipment out of Canada.
3. Receive training or give training aan’n Canadian company that is also receive a partner or parent company of the one you are working for.
4. Receive training ofâ Canadian company from which you purchased the equipment or services.