Many businesses don’t realize that the traditional Canadian bank is not their only option when it comes to securing business financing. While banks still do the majority of business lending in Canada their requirements are stricter when it comes to securing loan approval. It can also take longer, depending on the scenario.
At a minimum, banks will want to see:
- Credit scores of 650+
- Businesses with a history of 3 years+
- Previous two years income statements showing positive cash flow
- A business plan demonstrating a projected strong cash flow for the duration of the loan
Often banks will require additional information beyond the minimum, but for businesses that don’t meet the minimum criteria, they are not an option. However, if you do fall into this category, don’t feel bad because an estimated 40% of small business loans are rejected.
As a result, you are not alone.
If the bank is not the right option for you, there are many alternative financing options available to help you get over that challenging time in your business and secure the funding you need to grow.
In addition to traditional loans, there are many options and competitive products, including:
- Custom Tailored Leases
- Conditional Sales Contracts
- Chattel Mortgages
- Refinancing
There are many alternatives to the traditional bank loan and part of our service at Premier Equipment Finance is to help you make the choice that best suits your own unique business needs. We don’t grow unless you do, and we will work with you each step of the way to secure the funding you need.
Please reach out to us today for more information and to see if we can work together and help each other succeed.
