# 8 – NEED MONEY ?!?# 8 – NEED MONEY ?!? Financing Your BusinessFinancing Your Business $$ Needs$$ Needs SecuritySecurity Government FundingGovernment Funding Local FundingLocal Funding Employment ProgramsEmployment Programs Training ProgramsTraining Programs PartneringPartnering

#1 Good Personal CreditYour personal credit will be evaluated even when you are

applying for a loan under the name of your business. #2 Good Business Credit

Once a business has been in operation, a business needs good credit to be considered for a business loan.

#3 Asset BaseMost business loans are secured against an asset. Collateral is

required for most start-up.#4 Solid Business Plan

A business plan reflects the estimated profitability of a business in years to come.

#5 Industry ExperienceIt is rare to get a loan for a business you have no experience in. If you have no experience in an industry, add some experience to

your team by seeking advisers. http://www.finweb.com/loans/5-typical-bank-requirements-for-a-business-loan.html#ixzz3YBUn955K

ABORIGINAL BUSINESSABORIGINAL BUSINESS Self employment growing 5 times Self employment growing 5 times

faster then non- aboriginalfaster then non- aboriginal 37% are hiring and training 37% are hiring and training

employeesemployees 37,000 self employment (+38% 37,000 self employment (+38%

since 2006)since 2006) 63% have no employees63% have no employees 33% use Annual Business Plans33% use Annual Business Plans 55% use personal savings for 55% use personal savings for

startupsstartups 17% use government programs 17% use government programs

(grants, loans) for $(grants, loans) for $

SOURCES OF MONEYSOURCES OF MONEY Love money. Love money. Personal, family, Personal, family,

friends.friends. OverdraftOverdraft. . Covers shortfalls in your Covers shortfalls in your

account. Approved limits. Interest on account. Approved limits. Interest on balances.balances.

Credit cards. Credit cards. Short term loans Short term loans offered. Little or no security. Do NOT offered. Little or no security. Do NOT borrow on cards themselves at high borrow on cards themselves at high %!%!

Operating line of credit. Operating line of credit. Loan with a Loan with a set limit. Lower interest than credit set limit. Lower interest than credit cards. Security needed.cards. Security needed.

SOURCES OF MONEY 2SOURCES OF MONEY 2 Terms loans. Terms loans. Capital equipment, Capital equipment,

real estate, renovations. real estate, renovations. Established terms of % and Established terms of % and repayment. Security neededrepayment. Security needed..

Equity. Equity. Partnerships. Partnerships. Shareholders low interest. Shareholders low interest. Flexible repaymentFlexible repayment. .

Grants. Grants. Most attractive. Lengthy Most attractive. Lengthy paperwork. Each agency has own paperwork. Each agency has own criteria.criteria.

NEDC's Business Development NEDC's Business Development Officers (BDO) have expertise in Officers (BDO) have expertise in

developing the developing the best funding best funding packagepackage for you.   for you.  Contact them Contact them today to discuss your business today to discuss your business

financing needsfinancing needs (1.866.444.6332 (1.866.444.6332 or in Port Alberni 250.724.3131).or in Port Alberni 250.724.3131).

YOUR CREDIT RATINGYOUR CREDIT RATING

““Your credit history and net Your credit history and net worth will determine the do-worth will determine the do-

ability and terms of any ability and terms of any funding. May need co-funding. May need co-

signatory or more security.”signatory or more security.”

ONE CHANCEONE CHANCE

““You have one You have one ‘kick at the can’ to ‘kick at the can’ to

make a good make a good impression. impression.

Funders Funders HATEHATE change.”change.”

APPROACHING A FUNDERAPPROACHING A FUNDER CHARACTERCHARACTER. Ability to manage; . Ability to manage;

expertise; skills, determination, expertise; skills, determination, confidenceconfidence

CAPACITYCAPACITY. Well thought out . Well thought out Business PlanBusiness Plan

CASH FLOWCASH FLOW. Ability to repay, . Ability to repay, ride through slow times, manage ride through slow times, manage cash wellcash well

COLLATERALCOLLATERAL. Security to . Security to guarantee funding, as necessaryguarantee funding, as necessary

HOTHOT BUTTONS BUTTONS

““Every fund has its Every fund has its REASONS FOR BEING REASONS FOR BEING THERE. Find the THERE. Find the “HOT “HOT BUTTONS” BUTTONS” and make and make sure you push sure you push them…… them…… …….…….repeatedlyrepeatedly.” .”

AVAILABILITYAVAILABILITY LoansLoans

Micro LoansMicro Loans

GrantsGrants

Reimbursable Reimbursable grantsgrants

Credit termsCredit terms

AwardsAwards

Foundations / Foundations / giftsgifts

Corporate or Corporate or agency supportagency support

TARGETED $TARGETED $

1.1. Self EmploymentSelf Employment2.2. NewcomersNewcomers3.3. DisabledDisabled4.4. AgricultureAgriculture5.5. FisheriesFisheries6.6. FarmingFarming7.7. CooperativesCooperatives8.8. Social EnterpriseSocial Enterprise

9.9. TechnologyTechnology10.10.Aboriginal, Aboriginal,

Special Interest Special Interest GroupsGroups

11.11.Environment Environment (‘(‘GreenGreen’)’)

12.12.Wage SubsidiesWage Subsidies13.13.ExportingExporting14.14.Non ProfitNon Profit

IF THEY SAY ‘NO’ IF THEY SAY ‘NO’ Ask why? Ask why? What areas of the What areas of the

business did they like and business did they like and NOT like? NOT like?

Suggestions to make it Suggestions to make it fundable?fundable?

Were you asking for too Were you asking for too much? Risk factor too much? Risk factor too high?high?

What will it take to say What will it take to say YESYES??

RESEARCH THESERESEARCH THESE Women’s Enterprise Centre Loans Women’s Enterprise Centre Loans

Program Program www.womensenterpeise.ca Small Business BC Small Business BC

www.smallbusinessbc.ca/Financing Ministry of Small BusinessMinistry of Small Business Canada Business Canada Business www.canadabusiness.ca First Citizens Fund First Citizens Fund

www.gov.bc.ca/arr/economic/fcf Strategis (info search) Strategis (info search)

www.strategis.gc.cawww.strategis.gc.ca

MORE RESEARCH SITESMORE RESEARCH SITES

Business Development Bank www.bdc.caBusiness Development Bank www.bdc.ca Community Futures Community Futures

www.communityfutures.cawww.communityfutures.ca Service Canada www.servicecanada.caService Canada www.servicecanada.ca Canada Business : Service for Canada Business : Service for

Entrepreneurs www.canadabusiness.caEntrepreneurs www.canadabusiness.ca www.smallbusinessbc.ca/pdf/overview.pdfwww.smallbusinessbc.ca/pdf/overview.pdf Canaan Youth Business Foundation Canaan Youth Business Foundation

www.cybf.ca www.cybf.ca

DON’T BE A ‘KNOW IT ALL’ DON’T BE A ‘KNOW IT ALL’

““Funders like to be Funders like to be viewed as ‘helpful’ and viewed as ‘helpful’ and ‘knowledgeable’, and ‘knowledgeable’, and directing you to the directing you to the

right $ program. right $ program. LET LET THEM.THEM. Be informed Be informed

before you meet, but before you meet, but let them take the let them take the

leadlead.”.”