As an entrepreneur, financing can be difficult to find, regardless how good the economy is doing. Whether you are looking for capital to expand or support yourself during more challenging times, there are different approaches you should take into consideration.
Financing is essential to a company's survival
In a perfect world, each of your business projects would be paid in cash from your sales or services. However, this approach has its downsides. Investing a large part of your cash flow when many unforeseen events could cause it to fluctuate can be risky. This is why financing, whether by bank loan or line of credit, remains essential to the survival of the majority of young companies.
An SME loan is the most traditional avenue for those adopting a debt-based approach to financing their business. However, financial institutions understand the higher risk associated with SMEs that may have little or no credit history or collateral. This can make bank loans difficult to obtain and push entrepreneurs to look for other solutions.
Organizations that can help Montreal SMEs
Since access to financing can sometimes be difficult for start-up companies, it is worth considering that many organizations can help ensure that you have the financial resources you need to bring your projects to fruition.
As you learn more about this subject, you will discover that several investment funds can serve as financial levers, notably by offering grants or loans at attractive rates. You could get a serious boost to finance, among other things:
- capital expenditures (land, building, equipment, incorporation costs, etc.)
- the acquisition of technologies, software, software packages, patents, etc.
- your working capital
- certain professional fees
However, to be eligible for these subsidies, your company must meet certain conditions. In addition, the amounts and interest rates granted will often be determined according to the level of risk involved.
Demonstrate the viability of your business and you will find financing
In conclusion, no matter what financing method you prefer, you will have to demonstrate that your business is viable. You will need to be able to prove that you have buyers in a market with good potential and that you have a team that can deliver the goods. This is the best way to build trust and increase your chances of being eligible for financial support.
For valuable advice on the best financing strategies for your business, please do not hesitate to contact the T2inc team. We can even assist you with the incorporation or taxation of your SME.
Frédéric Roy-Gobeil
CPA, M. TAX
As President of T2inc.ca and an entrepreneur at heart, I have founded many start-ups such as delve Labs and T2inc.ca. A former tax specialist at Ernst & Young, I am also a member of the Ordre des comptables professionnels agréés CPA and have a master's degree in taxation from the Université de Sherbrooke. With a passion for the world of entrepreneurship and the growth mindset, I have authored numerous articles and videos on the industry and the business world, as well as on accounting, taxation, financial statements and financial independence.
