Setting up a business in Canada – What are the solutions to finance it?

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It is essential to know all the financing opportunities when you decide to create your own business, regardless of the field of it. All these resources may not be granted to you, that’s why you have to try your luck with several financings, because the banks are not the only institutions that can lend you money.

What is your personal investment worth?

Before you turn to a funding organization, you have to define what you can bring of yourself. You can invest a sum of money yourself, or put some of your assets as collateral

The investors you turn to next will see that you are prepared to invest for the long term in your company, which is a sign that you are willing to take risks yourself.

Turn to angel investors

Angel investors are also called angels, they are wealthy people, or former corporate executive and make investments in businesses that are owned by other people.

The advantage of this system is that they also benefit from their experience, their relational network, as well as their various know-how and technical knowledge. But you have to bring in this type of person early in the development of the business.

Passed through a tax credit financing company

You can make a loan from a bank, then go through a tax credit financing company. It occurs once your credit is accepted and can finance part or all of your loan, on your current or future tax credits.

These companies usually intervene at the start of a company’s development, but can also do so once the business is already growing and has interesting future plans.

Turn to business incubators

Often known to turn to companies offering high-tech projects, business incubators can also help local businesses. They like companies that think about the local economy and create jobs.

Their advice at the start of development is often to share their premises. The incubators will provide them with workspaces, but also laboratories, for example. This is a way to reduce costs for the start of development.

Take advantage of government grants

Check with government aid, you could enter the admission criteria. However, you should know that to benefit from it, you will have to face strong competition and you will have to invest equally with the subsidy. And you will need to build a good file with documents such as:

  • The description of your project with all the details
  • Demonstrate the benefits of your project
  • Full details of costs
  • Information on the leaders, their experiences
  • Completed grant application forms
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