Personal financing is normally the best course of action when it comes to business financing Canada. This traditional way is by no means still very practical and smart too. You can do it by using your own savings, selling some personal but non-essential items, cutting your expenses and increasing your income by getting another job or earning additional passive income like rentals. However, not all business owners have the luxury of utilizing personal financing to take care of business expenses and capitalization needs. Here are other sources or business financing options you can look into:
Credit Card and Unsecured Bank Loans
Your bank can be a big help when it comes to business financing. You can always request for a higher credit limit for your credit cards so you can manage to finance business expenses and other short cash flow challenges. The same is true for unsecured bank loans. You can always check with your bank relations manager of the various credit lines available to entrepreneurs or small business owners like you. There are low interest loans which do not require security or collateral. These are good options especially if you are just starting up. Be sure to be aware of the interest rates and various charges that come with higher credit lines and unsecured loans.
Factoring and Leasing
Factoring your accounts receivable or leasing out some of your assets are becoming popular options for many these days when it comes to business financing Canada. These options mean you have cash right away in exchange for assets that you have. While factoring means letting go of your account receivables as collateral, leasing would mean allowing others to use your assets in exchange for cash. Normally, factoring offers a faster way to obtain financing as there are many factoring companies in Canada.