Global fintech and funding innovation ecosystem

Where to Find Startup Loans in 2018

LendingArch | Lewis Mudrich | Oct 4, 2018

small business lending 1024x297 - Where to Find Startup Loans in 2018

If you need some funding for your small business then you may be wondering where to start, as well as how to find, the best options and most competitive rates (especially when you’re browsing through small business loan options).

Indeed, getting funding for your startup can seem like a daunting task. At the same time, there are a variety of financing options available if you know where to look. Luckily, we’ve done the research for you.

Here is where you can find the best small business loans in 2018:

Startup financing loans

Canadian startups can apply for a startup financing loan through the Business Development Bank of Canada (BDC). This loan is specifically designed for startups in the first 12 months of business and can be used to help launch and grow the business.

According to the bank’s website, the loan can be used for:

  • Working capital to supplement an existing line of credit
  • Fixed assets
  • Fund marketing and startup fees
  • A franchise purchase
  • Advisory services

In order to qualify for a BDC loan, you must have a business plan in place, have experience in your field, provide personal and credit references, and show market potential. You can apply for a BDC startup loan here.

Microloans

Does your business have a social enterprise slant and community focus? You may be able to get approved for microloans from Community Micro Lending. You can apply for the lender’s “Start-Up Loan” of up to $5,000 or, if you’ve been in business for more than a year, you may be eligible for an Expansion Loan of up to $10,000. In order to qualify for this microloan program, you must be an aspiring or current entrepreneur located in the Southwest BC area.

If you’re working on a green business or green technology startup, you can also check out Microloans for green business. For example, the Vancouver City Savings Credit Union offers startup loans of up to $35,000 and expansion loans of up to $70,000.

There’s also the ACCESS Community Capital Fund that can provide loans of up to $5,000. The ACCESS Community Capital Fund is a Canadian Registered Charity that helps business owners access microloans. Some other microloan programs include the Ottawa Community Loan Fund, The Alterna Savings Community Micro-Finance Program, and ACEM Microcrédit Montréal.

Keep in mind that microloan opportunities can vary based on province so be sure to look for programs in your area.

Government financing

If you want to get your startup off the ground, you’ll be happy to learn that there are many different government financing options available.

The Government of Canada, for example, offers several different types of small business loans. These vary depending on industry, demographics, and location. For example, loans range from the Aboriginal Business and Entrepreneurship Development financing to FACTOR funding for the sound recording industry - and lots of options in-between.

To find out what’s available, look at programs that you are eligible for - based on your region - as well as certain demographic groups that you may belong to. Be sure to do your research and make sure you meet the eligibility requirements before applying for a loan.

Credit cards

Now, here’s a lending option that you may already have access to: your credit card. While credit cards aren’t an ideal funding source, you can use them if you need to purchase products and equipment for your business - perhaps while applying for other small business loans. Just be aware: credit cards may have sky-high interest rates. With that said, there are special business credit cards  that may be a good fit for what you need.

Check out:  4th Annual VanFUNDING 2018:  CONVERGE Conference, Nov 29-30 in downtown Vancouver

Credit cards should be the last business funding option as you certainly don’t want to incur insurmountable debt at a high interest rate. Not only that but the repayment terms may not be that flexible. On the other card, a business credit card can help you manage short-term cash flow issues.

Crowdfunding

The internet isn’t just about cat memes and popular catch-phrases, it’s also a place to get money for your startup. Using the power of crowdfunding, you can utilize your network and the vastness of the internet to get your message and business out there and make some money.

Using sites like Kickstarter, IndieGoGo and specialized platforms like iFund Women (you guessed it: for female founders!) you can share information about your project and garner support from friends, family, and colleagues. Usually these sites take a fee for posting your project page, but the money you can raise will hopefully offset those fees. For more comprehensive options, check out this crowdfunding directory.

Family and friends

If you’re lucky, you may have a family member or friend who is willing to provide funds to help you with your startup costs. On one hand, this can be great as there is less red tape and hassle to get you your much-needed cash. On the other hand, if things go awry, you may lose more than your investment.

If you go this route, be sure to treat it like a business relationship. Create a contract and have a payment schedule that works for both of you. It’s important that both parties feel comfortable in this situation - it’s not just about getting your hands on the cash.

Small business loans from online lenders

If you can’t get approved for a traditional bank loan and you don’t want to hit up your friends and family, you still have another great option for a small business loan. You can apply for a loan through an online lender.

For example, LendingArch helps startup founders and small business owners compare loan options effortlessly and easily. You can compare your options in a matter of seconds and the application process is simple. On top of that, LendingArch doesn’t require any collateral for your startup loan and offers flexible repayment schedules to accommodate your business.

Better yet: when applying for a small business loan online through LendingArch, you won’t find the same restrictions you typically encounter with other loans. So, if you need funding to start your company or expand your business, we’ve got you covered.

There are no hidden fees, rates are competitive rates, and you can create a company profile in mere minutes. From there, you can start an application to see which small business loans are available to you.

See:  How Fintech Is Transforming Microfinance

Bottom line

If you’re a startup founder looking for funding for your business, there are many options out there. Using this guide, you can check out the various resources that are available to you and find a small business loan that suits your needs. But remember: be sure to apply for a loan with reasonable interest rates and repayment terms. This way you can pay back the loan on terms that work for you while focusing on growing your business.

Interested in checking out your startup loan options? Compare small business loans at LendingArch!

 


NCFA Jan 2018 resize - Where to Find Startup Loans in 2018 The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Where to Find Startup Loans in 2018FF Logo 400 v3 - Where to Find Startup Loans in 2018community social impact - Where to Find Startup Loans in 2018

Release | Jun 21, 2024 Nova Credit and RBC Join Forces to Simplify Financial Start for Newcomers Nova Credit has announced a partnership with the Royal Bank of Canada (RBC) to make it easier for newcomers to Canada to obtain credit. Newcomers to Canada frequently find it difficult to obtain loans, credit cards, or mortgages since they do not yet have a Canadian credit history. See:  RBC and Rogers Cybersecure Catalyst Launch New Fintech Incubator Nova Credit's technology solves this problem by transforming international credit data into a format that Canadian lenders can comprehend and apply. This integration enables newcomers to carry their credit history from their home countries, thereby bridging the gap and providing more seamless access to financial goods in Canada. Nova Credit is a credit infrastructure and analytics innovator committed to providing alternative credit data solutions. Nova Credit makes it easier for immigrants and newcomers to access financial services by converting international credit data into local equivalents.  Report:  2024 State of Alternative Credit Data Partnership Features This credit information passporting technology will be implemented into RBC's Global Credit Connect, allowing for real-time translation and integration of overseas credit histories into Canadian-equivalent scores. Eligible arrivals can now qualify ...
Nova Credit and RBC partnership to support newcomers - Where to Find Startup Loans in 2018
AI Report | Jun 21, 2024 Investor Insights from the WEF's Playbook on Responsible AI (RAI) The "Responsible AI Playbook for Investors," published by the World Economic Forum, provides crucial guidelines for investors to navigate the ethical, legal, and social implications of AI investments.  Investors should apply due diligence through a responsible AI framework or set of guidelines to avoid the most common AI challenges around lack of governance, data bias, explainability, privacy/security, and sustainability. 1.  Effective Governance is the Bedrock of RAI Investors must build strong governance mechanisms to assure responsibility across the AI lifecycle. This includes creating thorough rules that establish ethical standards and compliance requirements, guaranteeing board monitoring, and including diverse stakeholders in order to foster trust and uphold ethical norms. Governance frameworks that prioritize accountability and openness can help to reduce risks and build confidence among stakeholders. 2.  Fairness and Inclusivity with Diverse Datasets and Routine Audits AI systems must be developed to promote fairness and diversity, while also addressing potential biases in data collecting and algorithm design. Regular bias audits and increasing diversity across AI development teams are critical measures. The playbook emphasizes the need of inclusive AI, showcasing how technology can benefit excluded populations ...
Responsible AI Playbook for Investors WEF cover - Where to Find Startup Loans in 2018
Cybersecurity | Jun 21, 2024 A new algorithm cracks 87 million passwords in less than 60 seconds, challenging current cybersecurity measures. Cybersecurity specialists have discovered a sophisticated guessing algorithm capable of cracking 87 million passwords in less than 60 seconds. This breakthrough highlights the necessity for stronger security measures in our increasingly digital environment. Revolutionary Algorithm Kaspersky's recent study revealed a revolutionary algorithm that blends old brute-force tactics with powerful machine learning techniques. This smart guessing system can forecast and test the most likely password combinations first, significantly lowering the time required to crack them. See:  Mastercard Announces Cybersecurity Winners and 6 New Start Path Participants According to the data, 59% of 193 million credentials were hacked within 60 minutes, with an amazing 45% breached in less than a minute. By training on large password datasets, the system favours common character combinations, increasing its efficiency. Antonov, a key researcher at Kaspersky: "Smart algorithms make quick work of most passwords that incorporate dictionary sequences, and they even detect character alterations. "Using p@ssw0rd instead of password will not significantly slow down the algorithm." How Does Smart Guessing Work? Brute-force attacks, which loop through all conceivable combinations in search of a match, are ...
Freepik password - Where to Find Startup Loans in 2018
2023 BIS Survey Results | Jun 20, 2024 5 Key Trends in CBDCs and Crypto Regulation The 2023 BIS study on central bank digital currencies (CBDCs) and cryptoassets gives readers a good review of the current trends, innovations, and regulatory initiatives in it's latest report titled, "Embracing Diversity, Advancing Together - Results of the 2023 BIS Survey on Central Bank Digital Currencies and Crypto" (BIS Paper 147). See:  Federal Reserve on U.S. CBDC and Global Comparison With 94% of surveyed central banks researching CBDCs, the report shows a significant growth in wholesale CBDC research in advanced economies (AE). The results also provide insights into the motives and design elements of mature and emerging markets, increased stakeholder participation, and shifting regulatory frameworks for stablecoins and cryptoassets. 1.  Increased Wholesale CBDC Activity There has been a huge surge in wholesale CBDC trials in advanced economies. For example, the percentage of AE central banks running proofs of concept increased to 81%, while pilots increased to 33% by 2023. Several central banks, like the Swiss National Bank (Project Helvetia Phase III), the Bangko Sentral ng Pilipinas (Project Agila), and the European Central Bank, are actively participating in these trials. 2.  Differentiation Between Advanced and ...
BIS paper 147 2023 BIS Survey results on CBDC and Crypto - Where to Find Startup Loans in 2018
BDC | Release | Jun 20, 2024 BDC Announces $250 Million Investment to Empower Diverse Entrepreneurs in Canada The Business Development Bank of Canada (BDC) has reaffirmed its commitment to fostering inclusive entrepreneurship by announcing a $250 million investment to help majority-owned Indigenous, Black, and Women-led firms to help overcome long-standing obstacles to work towards establishing a more diversified and dynamic entrepreneurial ecosystem in Canada. How Will $250 Million be Allocated? Acknowledging the funding gap that new diverse firms are faced with, BDC has launched a $50 million program to promote early-stage enterprises run by women, Indigenous, and Black entrepreneurs. This program offers financial aid as well as key training to businesses with revenues under $3 million, assisting them in overcoming challenging entry barriers and building trust in mainstream financial services. See:  Trends in Reg CF for Minority and Women Founders BDC Capital, the bank's investment section, has introduced two new $100 million platforms aimed at Indigenous and Black-led firms. These efforts are intended to supplement the existing $500 million Thrive Platform, which helps Indigenous and Black women entrepreneurs. By collaborating closely with community leaders, BDC hopes to build supportive and effective investment environments that are suited to the requirements ...
Freepik diverse entrepreneurs - Where to Find Startup Loans in 2018
Capital Raising | Release | Jun 20, 2024 New Time-Limited Exemption Allows EMDs to Sell Prospectus Offerings for Growth Capital The Ontario Securities Commission (OSC), Autorité des marchés financiers (AMF), British Columbia Securities Commission (BCSC), Financial and Consumer Affairs Authority of Saskatchewan (FCAA), Alberta Securities Commission (ASC), and Nova Scotia Securities Commission (NSSC) are allowing exempt market dealers (EMDs) to participate as selling group members in prospectus offerings, increasing their potential to assist business growth. See:  Final Report: Ontario Capital Markets Modernization Committee Recommendations Historically, EMDs have helped start-ups and small to medium-sized firms access finance by distributing securities under prospectus exemptions. However, as these companies scale they tend to use full prospectus offerings, which EMD participation has been limited due to regulatory restrictions. The recently announced time-limited exception is intended to address these hurdles. The exemption allows EMDs to join as selling group members in prospectus offerings, offering an additional route for capital acquisition for growing enterprises. Investment dealers will continue to play key roles in these offerings, including underwriting. Grant Vingoe, CEO of the OSC: “Creating favorable conditions for business success is pivotal to our economic prosperity. Today's measures underscore the commitment of securities regulators to foster the ...
Freepik jcomp raising capital - Where to Find Startup Loans in 2018
Jun 19, 2024 Recent advances in technology have transformed the way we access and assimilate information, enabling us to make data-driven decisions that allow for greater predictability and precision. From artificial intelligence (AI) algorithms that can analyze large data sets on customer experience to machine learning models that can forecast market trends, the insights and clarity gleaned from these tools have revolutionized the business landscape. Many of these technologies can also be used in the investment arena to help investors manage their risk and optimize their returns. In this article, we will take a closer look at some of the ways technology can be leveraged by investors to inform and execute their investment strategies. Robo-Advisers These digital platforms can provide automated investment advice and services to investors without the need for financial advisers,  investment managers, or any other type of human intervention. Robo-advisers use algorithms to gather information on investors’ risk tolerance, finances, and investment goals through an online questionnaire. With this information, robo-advisers automatically create and invest funds into a portfolio that contains assets tailored to the individual's investment profile. Beyond portfolio management, robo-advisers can also monitor and automatically rebalance portfolios to ensure they maintain the allocated level of ...
Unsplash Joshua Mayo Online investing stock market - Where to Find Startup Loans in 2018
M&A | Release | Jun 19, 2024 Nuvei Shareholders Greenlight $6.3 Billion Buyout by Advent International Nuvei Corp., a major payment technology corporation based in Montreal, has announced that its shareholders have decisively approved a buyout proposal from American private equity firm Advent International. In a recent vote, 99.24% of Nuvei shareholders approved the takeover, which pays $34 per share in cash for a valuation of $6.3 billion. This high approval demonstrates investor confidence in the transaction and its ability to strengthen the company's strategic position. This transaction will take Nuvei private. See:  How AI is Shaping the Future of Financial Services in Canada Advent International proposed the buyout in partnership with existing owners Novacap, CDPQ, and Nuvei's chair and CEO Philip Fayer, which was first revealed in March 2024. Under the terms of the agreement, Philip Fayer will remain CEO and chair, to ensure continuity of management. The corporation will also keep its headquarters in Montreal. Background and Next Steps Nuvei went public in 2020, raising $833 million and breaking the record for the largest tech IPO on the Toronto Stock Exchange. The company's innovative payment options and rapid growth sparked widespread interest, including a large investment from Canadian ...
Freepik jcomp deal - Where to Find Startup Loans in 2018
Release | Jun 19, 2024 FundMore and Equitable Bank Announce Partnership to Improve Mortgage Lending FundMore, an artificial intelligence-powered mortgage underwriting platform, has scored a partnership with Equitable Bank, Canada's seventh-largest independent Schedule I challenger bank. This collaboration intends to streamline and improve the mortgage process, making it more efficient and accessible to borrowers across Canada. The major purpose of this collaboration is to use FundMore's innovative technology to improve Equitable Bank's mortgage operations. FundMore's platform uses artificial intelligence and machine learning to automate and improve mortgage underwriting accuracy, saving time and effort on mortgage approvals. This integration is expected to benefit both borrowers and lenders by reducing response times and improving risk evaluations. See:  FundMore x Senso AI Launch Solution to Transform Lending Quicker decision-making will also improve the overall customer experience while reducing the paperwork often involved with mortgage applications. Initially, the new services will be provided in major markets such as British Columbia, Alberta, and Ontario. There are intentions to expand further depending on the success of the initial rollout and market demand. This strategic expansion aims to meet the needs of various customer groups, including owner-occupied purchases, refinances, and rental property investments. Mahima Poddar, SVP and ...
Freepik rawpixel.com real estate - Where to Find Startup Loans in 2018
Enforcement | Jun 19, 2024 SEC Ends Investigation into Consensys and Ethereum.  Implications for the Crypto Industry On Jun 18, 2024, Consensys announced that the United States Securities and Exchange Commission (SEC) has dropped its investigation into Ethereum 2.0 and will not take legal action over Ethereum. This is big win for the Ethereum community and will have implications for the future of cryptocurrency regulation in the United States. Background In 2018, the SEC when Jay Clayton was Chair and in public speeches SEC Director Bill Hinman expressed that Ether was not a security.  However, when Gary Gensler, the current SEC Chair, took over, the regulatory attitude became clear as mud.  In 2023, the SEC began looking into Ethereum 2.0, implying that it could be a security. Consensys received many subpoenas and a formal order of investigation on March 28, 2023. Consensys replied by launching a lawsuit in April 2024, arguing that Ethereum is a commodity and outside the SEC's authority.​ SEC's Decision On June 18, 2024, the SEC issued a letter to Consensys stating that it would not take enforcement action against Consensys or Ethereum 2.0. The letter officially closes the SEC's inquiry of Consensys and Ethereum 2.0, noting ...
SEC letter in the matter of Ethereum 2.0 - Where to Find Startup Loans in 2018

 

Leave a Reply

Your email address will not be published. Required fields are marked *

fourteen − one =