Question: How do I find small business start up money?
Answer:
For small business start up money, most people starting their own businesses reach into their own pockets first – even if they also intend to get a small business loan from a financial institution. This is because almost all lenders expect the person seeking a business loan to make a personal financial contribution.
What can you do about finding small business start up money if your own pockets are empty? You might turn to the second most popular source of small business start up money - family and/or friends. This kind of small business financing often takes the form of a personal loan.
And the third most popular source of small business start up money is the previously mentioned traditional financial institutions, such as banks, credit unions and caisse populaires. To access this kind of small business financing, you will need to have a solid business plan, a good credit rating and collateral.
The government of Canada offers special funding for small business start ups through the Business Development Bank of Canada (BDC). You can read more about the start up financing the BDC offers and other possible small business financing in 8 Sources of Business Start Up Money.
If you're a woman entrepreneur, Small Business Loans for Women in Canada provides information on small business loans that are only available to women.
Browsing the Small Business Loans section of the site will show you even more sources of funding for anyone starting a small business.If you are thinking of seeking a small business loan for your start up, How to Get a Small Business Loan explains how to make a successful loan request.
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