Whether you want to start or grow your business, financing is a very important aspect. The most important step about finding funds for your business in Calgary is to understand the types of financing that are available. Discussed below are five ways you can get funds to finance your business.
1. Government Financing.
The government through its departments and agencies offer business financing. This can be through grants, contributions and loan guarantees. There are many government grants that you can get to help finance your business venture. This can include the Agricultural development fund, Accessible Technology Program among others. The loan guarantees, on the other hand, are government-backed loan guarantee that can help you get loans from different creditors. There are also wage subsidies you can get from the government to help offset the high wage making it easy for your business to be attractive to employees.
2. Private sector financing.
There are many private sector lenders that are willing to finance your business. You will, however, have to convince them that they will get a return on their money. This financing can be in the form of debt or equity financing. Some of the types of debt financing include; lines of credit, commercial mortgages, commercial term loans, credit cards, supplier credit and asset-based financing. The equity financing solutions, on the other hand, can include; business incubators, venture capital, and angel investors.
This is a traditional form of financing your business where you collect financial contributions from strangers. You can get in touch with crowdfunding platforms and funding portals that do crowdfunding over the internet for a fee. They can help you raise funds by collecting donations and taking pre-orders. This method of financing, however, does not work with all business ventures. Here is how crowdfunding works.
4. Financing from non-governmental organizations.
There are several community-based non-profit making organizations that can provide you with financing. These organizations include Futurpreneur Canada side-hustle program and Futurpreneur Canada Start-Up Program among others. There are also organizations that can offer business assistance in various forms including coaching and network. They can also help you in accessing funds for your business.
5. Personal assets.
You can also use your personal assets to finance your business. There are other lenders who can only offer funds once they make sure you have your stakes in the business. Some of these assets include; personal property, money in your savings account and other investments like stocks, bonds, and mutual funds. You can also use personal belongings like telephones and furniture instead of purchasing new ones.
Over to you. Finance should never be a reason for not starting or growing your business. From the options above, choose the type of financing that fits your business and get the funds to grow your business.