126 King Street West - Unit 1 Stoney Creek, ON L8G 0A9   t: 905-662-9437   tracy@fiscalperformance.com

In the world of business, cash flow is king.  Money makes the wheels of business go round and it provides the fuel for growth and prosperity.  The problem is that the money is not always readily available in a timely fashion.  Lack of it can lead to creditor issues and can stymie the health, wellbeing and future growth of the business.  A pool of cash made available at the right time and for the right reason can speed up growth faster than having to go it on existing resources.

How about a loan, mortgage or line of credit?  Money made available in this fashion can provide the necessary financial leverage to take care of business and/or move forward.  The trick here is the intelligent and responsible management of the money to achieve the desired goals or results.  Often times with loans or mortgages, there are strings attached on how the money can be spent.  This is not necessarily a bad thing.

A major consideration when applying for financing should be the ability to pay it back.  The assumption is that the injection of funds will allow for business to go forward and provide the money to pay off the loan or keep the line of credit in check.  Keep in mind the interest that will also be part of the payback.

For businesses, there are a number of products available when it comes to loans and lines of credit.  Let’s explore some of them.  I must give a special shout out to my friend and associate Sharon Mosca who is a small business account manager at the TD Canada Trust here in Dundas, Ontario.  Sharon provided me with the resource materials that illustrate the kinds of products that her bank has available for businesses.  I am pleased to refer her to you without hesitation for any of your financial needs.  Let me know if you need her contact information.

This leads me to my first point: you want to deal with someone, a point person, who will really get to know you and your business.  This is important when it comes to fine tuning your wants, needs, and ability to service the debt.  Not going this route could lead to catastrophe down the road.

Loans and/or lines of credit can be for as low as $1,000.00 for businesses with small projects or that just need to occasionally bridge the gap between receivables and payables.  Many business owners and managers can relate to this.

A small business financing loan can be used to purchase owner-occupied real estate or for improvements to new or existing properties.  It can also be used to finance equipment for the business.

Business investor mortgages are also available.  These would be for properties where the owner does not occupy the entire property.  How much of the value of the property that could be mortgaged would depend on things like location and what percentage of the property the owner would occupy.

Not to be left out are loans, lines of credit and mortgages for rural properties zoned for agriculture.  The amounts available would be determined by such things as the size of the property and whether there is a house on it.  Also whether there are any additional buildings.  Other things to be considered would include additional sources of income besides farming, and other current debts.  The money can be used to purchase property, make improvements to it, or restructure the debt.

When it comes to applying for business loans, mortgages or lines of credit, depending on the amount of money being applied for and the reasons for it, security on the debt will no doubt be required.

Under the right circumstances, a lot of money is available to business owners.  The intent should be to determine what you need and then go see what works best and if you qualify.  By all means feel free to connect with me to discuss your situation.  As usual, the numbers from the bookkeeping perspective will need to be in place in order to go after and qualify for a loan or a line of credit.  You can also go directly to someone like Sharon to see what they would need to get the ball rolling.

Here’s to our mutual financial health.

Tracy

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