• Last Updated:
  • Nov 15th, 2017 2:21 pm
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[OP]
Newbie
Nov 2, 2017
2 posts

Loan for new business?

Hi there-

Any advice on large sized business loans? ($20K to $300K)

I had a business in the past, did fairly well. Own my home and have some assets.

I'm thinking of starting a business again. 2 sorts of financing I'll need:

a. I'll need a loan, some computer or computer-related equipment. A lot for marketing. This part, perhaps $20K-$50K.
b. My current idea requires inventory, so wondering how I can do that? Like, if I want to buy bulk I'll need $30K.. Ideally more like $100K to obtain discounts... I've seen companies provide inventory financing for car dealerships but.. this idea is for computer and technology goods that I'm selling, not cars. Any suggestions on where to go?
8 replies
Deal Guru
Aug 2, 2010
10949 posts
2175 upvotes
Marketing and computer equipment are not things a lender can execute upon if you default so you will be required to provide total security in the event of default. Your best and lowest cost bet is to get a HELOC. Any lender that is going to finance your dream, which will only be 3rd & 4th tier lenders for the risk involved, is going to ask for personal guarantees up the ying-yang anyway and then also charge a usurious interest rate on top of them so if you have to provide a guarantee you might as well do it with your home as the security and get the lowest rate.

Other options are getting one of those credit cards that give you 0% for 6-12 mos (MBNA, etc) for a 1% or so fee. That provides you with some short-term very low cost financing.

I keep getting offers every month from getondeck.ca (888-743-7430) who provide small business financing. I don't know what the rate is as I don't need their loans but you might want to check them out. Again, the interest rate will be much higher than a HELOC and the loan amount will be much lower. Report back as to what their terms and loan levels are. I'm curious not that I need it.
Deal Guru
Aug 2, 2010
10949 posts
2175 upvotes
Whoops, I just checked getondeck.ca's website and their minimum requirememt is companies in business at least one year with $100,000+ in gross annual revenue so that doesn't work. You might want to consider them after you meet those qualifications. See, even high interest lenders minimize their risk.
Sr. Member
Nov 8, 2006
552 posts
80 upvotes
Toronto
Have a business plan and look for business loan at banks.
[OP]
Newbie
Nov 2, 2017
2 posts
Surprised no one mentioned BDC (Business Development Corp of Canada), which seems to have a lot of programs. Applied for a business loan. It literally took 25 minutes online. They offer up to 100K tho I doubt most people get that. We'll see what happens.
Deal Addict
Jul 18, 2016
1835 posts
666 upvotes
SimonL193133 wrote:
Nov 4th, 2017 1:02 am
Surprised no one mentioned BDC (Business Development Corp of Canada), which seems to have a lot of programs. Applied for a business loan. It literally took 25 minutes online. They offer up to 100K tho I doubt most people get that. We'll see what happens.
How did you qualify for that? It quite explicitly states that your business must have 24 months of revenue.

Link to bdc business loan qualification requirements.
Deal Addict
Jul 10, 2014
1970 posts
435 upvotes
Ottawa, ON
SimonL193133 wrote:
Nov 4th, 2017 1:02 am
Surprised no one mentioned BDC (Business Development Corp of Canada), which seems to have a lot of programs. Applied for a business loan. It literally took 25 minutes online. They offer up to 100K tho I doubt most people get that. We'll see what happens.
Let us know how it turns out.
Jr. Member
User avatar
Apr 8, 2009
108 posts
11 upvotes
I am interested in this as well.

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