• Last Updated:
  • Jan 12th, 2019 3:42 pm
[OP]
Jr. Member
Apr 20, 2011
150 posts
19 upvotes
Toronto

Best way to get a business loan

I am looking to get some loan to add more inventory. The sales have been going pretty steady, good bank statement showing constant income stream. It's an online business. The "Canada Small Business Financing Program" doesn't provide loan for inventory so what are my options.

Also, its been ~6 months since the business has launched.
6 replies
[OP]
Jr. Member
Apr 20, 2011
150 posts
19 upvotes
Toronto
eonibm wrote:
Jan 9th, 2019 11:34 am
You can use factoring.
care to explain a bit more?
Newbie
User avatar
Jan 7, 2019
14 posts
5 upvotes
hyph3n wrote:
Jan 9th, 2019 10:29 am
I am looking to get some loan to add more inventory. The sales have been going pretty steady, good bank statement showing constant income stream. It's an online business. The "Canada Small Business Financing Program" doesn't provide loan for inventory so what are my options.

Also, its been ~6 months since the business has launched.
Try speaking with BDC (Business Development bank of Canada) they can normally help with loans for situation like yours.
Newbie
User avatar
Jan 7, 2019
14 posts
5 upvotes
Depending on the amount and strength of your interims and personal assets, you may be able to go straight to one of the Big Five Banks and get a small loan.

Try both and see how it goes. I know BDC will charge upwards of 10% interest since newer companies are risky.
Jr. Member
Jan 19, 2004
187 posts
33 upvotes
Factoring is expensive. They can charge you 2% up front for your A/Rs and essentially 2% every month beyond that.

BDC does inventory term financing, banks can possibly provide you with A/R financing/small line of credit. Banks would be the cheapest way to go.

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