Finance expert Alec Morley offers Canadian small business owners tips on finding funds in trying times
The Canadian Federation of Independent Business says that the credit climate for Canadian small businesses is improving, but finding a loan can still be tricky.
TD Canada Trust small business bank manager Alec Morley offered some tips to Canadian entrepreneurs about how to find a loan in a difficult climate. He offered his 20 years of banking experience to readers of the Globe and Mail.
To start, he reminds SME owners that entrepreneurs must make sure they can handle monthly debt payments to convince banks they deserve a loan.
Morley also says small business owners need to make sure the assets of their business cover the loan, and the borrowers need solid credit records.
Additionally, he says banks will look for entrepreneurs to have some personal equity invested in the company - particularly with start up companies or first time applicants.
He also advises SME owners to enter the application process with confidence. He told the source TD's Business Bank increased lending volumes by $2 billion last year. Entrepreneurs should try to boldly stake a claim at what they likely deserve.
Now may be an ideal time to look for additional funds for a small business. A recent report from the HSBC Global Small Business Confidence Monitor indicates the small business investment outlook is strong for the next few months.
