A small business loan is a sum of money provided to a new or existing company to fund various aspects of conducting business. Financial institutions are often the most reliable and cost-efficient source of funding, and most banks offer several programs and options. Term, or instalment, loans are repaid over a specified period of time, usually in monthly payments. New small businesses often lack the credit history and collateral to qualify for these loans, especially when they’re seeking startup financing.
New ventures often seek funding through the Canada Small Business Financing Program. CSBFP loans are available through most lenders for both new and existing businesses. Personal loans are another option for new small business owners with good credit.