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Your startup business loans options in Canada

As you plan to start a business, you’ll mainly think about how to financially support the company. From buying assets to paying your employees, the right amount of funding plays a key role at the start of a business. With suitable startup business funding, you can make your entrepreneurial dreams a reality by mixing different sources of capital. 

Five options for loans for small businesses 

The most common ways to finance your new business include equity investments, loans and grants. You can mix different funding sources to ensure you have adequate capital for your business.  

  • Financial institutions—the most common place to find funding is from a major financial institution. While they are the source of bigger loans, they also have the highest eligibility standards.  
  • Financing from friends or family—people close to you are usually willing to help since they know they can trust you to repay them. However, some business owners prefer not to use this type of funding as it could lead to some friction in their relationships.  
  • Personal loans—a personal loan can act as a flexible business loan, meaning you can use it for any purpose as you set up your company. You can use it towards some of your business launch expenses.  
  • Financing programs in Canada—while the money isn’t directly from the government of Canada, they provide the information to help you get started on your business loan journey.  

The money for your business can be from other places, and they don’t always have to be loans.  

  • Personal savings—using your money is an excellent way to support the financing you get from lenders. 
  • Crowdfunding—raising money can be done with the help of people who share your goals and aspirations.  
  • Grants from the federal government—prizes and small allowances specifically for new businesses can also come from the government of Canada. 
A couple going over their renovation plans

How much does it cost to start a business? 

Generally, it can be up to $50,000 or more, depending on the line of business. The total cost will change depending on hiring wages, website expenses, and inventory, among other business needs. As you start, having extra capital is good, but be sure you’re budgeting appropriately regardless of how much you have.

Factors to consider when applying for a startup business loan 

  • Credit score strength— the better your personal credit score is, the better your chances of getting approved for your business loan. 
  • Collateral— sometimes, offering collateral helps you secure a loan and may even help you negotiate a lower interest rate.  
  • Debt-to-income ratio— lenders have peace of mind knowing that your financial situation can handle a loan, especially business loans, because of how big they can get.  
  • Additional fees— application fees are among some of the extra expenses involved in getting a business loan, so be sure to budget appropriately.   

If you are unable to meet the requirements from banks and own your home, Alpine Credits is a great alternative to banks requiring you to only show that you have equity in your home.

Can I get a startup business loan with no credit check? 

No credit check business loans are possible with alternative lenders like Alpine Credits. Their approval criteria are focused on the equity you have in your home rather than your credit score or financial history.

Can I get a business loan with no money down? 

Generally, you don’t have to provide a down payment for business loans. Business financing without a down payment includes home equity loans, government grants, and personal loans, available at various lenders. 

What is the loan term for startup business loans?  

How much you borrow and who you borrow from are factors that affect how long your loan term is. The term can be from one year to ten. Sometimes, you may choose the length of your term, while some lenders may be more rigid with their terms.

Conclusion: flexible startup loans for businesses with Alpine Credits

Homeowners who want to launch their own businesses have a unique opportunity with Alpine Credits. If you have been paying your mortgage for several years, you have built a significant amount of equity that you can access as cash. By calculating the difference between your outstanding mortgage and the appraised value of your property, you can determine how much you can borrow. 

The money you receive by accessing your home equity is called a home equity loan, which is a popular choice to start a new business. A home equity loan offers comparatively lower interest rates while providing abundant funding. You can buy equipment, pay your employees, or create a marketing campaign. 

If you have paid at least 25% of your property’s value, you are eligible for a home equity loan from Alpine Credits. The process is smoother and faster than at major banks because you don’t need to provide your credit score or business plan.

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Frequently asked questions

Grants from the government and loans from various lenders are options for financing your startup business. Each has different qualification criteria for entrepreneurs of all backgrounds.

Among needing a strong personal credit score and adequate income, your business plan may be the most important factor for small business loans. But for Alpine Credits, all you need to have is sufficient equity in your home 

A startup business loan can be up to $500,000, but the amount you get depends on the lender you collaborate with. Some may give more, while others may have smaller maximum loan amounts.

Whether small businesses or large corporations, some assets they have will include a mix of intangible and tangible assets. Intangible assets include licenses and branding, while tangible assets include real estate and equipment.