Chartered Banks & Trust Companies
A logical first step in financing your practice is hiring a bank manager. Many banks have centres that work exclusively with professionals.
Canada Small Business Financing Program
With the Canada Small Business Financing Program, the federal government assists by partially offsetting any potential losses from your regular bank loan. This program can only be used for leasehold improvements, improvements to equipment and leased property, and purchases of equipment.
Venture capitalists are companies and individuals that have excess capital and are looking for an investment opportunity. A venture capitalist will take a share (equity) in your company, and you in turn give up partial ownership of the business. The Business Development Bank of Canada (BDC) may assist small and medium-sized businesses in this manner
Types of Financing
A term loan is most often used to purchase equipment. The advantage is that the repayments of the loan are matched to the income that the equipment generates, and the schedule is matched to the equipmentâ€™s life expectancy. Typically, the interest rate of a business loan is fixed.
Lines of Credit
A line of credit allows you to draw money as you need it, typically for day-to-day expenses. You apply for it as you would a loan. The interest rate fluctuates because it is tied to the prime lending rate.
More than 70% of small-business owners use credit cards for small purchases, as a temporary source of cash, and to cover immediate expenses. A credit card gives instant credibility because suppliers are assured they will receive payment.