Mortgage Blog

4 Ways to Get A Business Loan in Ontario

June 7, 2022 | Posted by: Michael Marshall

Getting a business loan can help a start-up business, small business, or well established business fill financial obstacles and have access to resources they require. A line of credit can be a valuable tool to assist a business to new heights and profitability. Many businesses use a line of credit as part of a larger capital access approach including short-term and longer-term financing to fuel growth and fund other revenue-generating projects. Ontario  provides an excellent business environment for entrepreneurs and for small businesses to grow their company operations. There are several options you can choose when looking for the right loan for you. 

  1. Loan Providers:

A business loan provider is a one-stop shop for your financing requirements. They have the access to multiple lenders in order to find the best option that suits you and your business’ needs. A loan company is often able to find you a better rate than most banks and are specialists in their field so they have the knowledge to guide you along the process. Loan providers will typically be able to find you a loan if a bank cannot, this is good for entrepreneurs and individuals with poor credit history.

  1. Bank Loans:

Some business owners may already have a relationship with their bank so acquiring a loan through them is an easier process. If an individual has a well- established relationship with the bank, they will have better access to a client’s account balances, credit card history, investments, etc. A bank can supply a wider financial view and give information about a range of financial products, but the loan officer may not have specialized loan knowledge. A bank is a large enough and stable enough institution to trust through periods of instability. 

  1. Secured/ Unsecured Loan:

Secured loans are loans that are backed up with some sort of collateral. If you cannot repay your loan, you may lose the collateral. Sometimes you or your business don’t have collateral to offer or may just be looking for a less-risky no collateral loan. An unsecured loan is a loan that a lender issues, supported only by the creditworthiness, rather than by any form of collateral. Which type of loan is right for you depends largely on the circumstances you’re in and what your goals are for your business. Keep in mind that a secured loan is :normally easier to get, as it’s a safer venture for the lender. 

  1. Crowd-Funding:

Crowdfunding can get you the financial capital you need to build a business, and  a great way to test new products and validate ideas within the crowd. While crowdfunding can be a good way for a startup to find capital, established businesses can also turn to the crowd to help invest in a new product. Crowdfunding allows you to put your idea in front of potential customers that might not otherwise be aware of your business. Investors usually fund online and are paid either through company shares or equal month installments. Such type of funding requires a strong business idea and the ability to motivate investors to participate in your business idea. 

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