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The following is a list of payment methods and related proofs of
payment required by Aboriginal Business Canada (ABC). Proof of payment must be readily available
for the life of the agreement, as your development officer will
request copies for verification purposes.
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Payment by cheque
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All cheques should be issued from a bank account used
exclusively for business purposes. This is the best method to
pay your costs and the easiest to track. Any of the following
proofs of payment are acceptable:
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photocopy of the front of the cancelled cheque (be sure
that the bank processing information is visible); or
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copy of a bank statement that clearly shows the payment
made to the vendor.
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Direct payment
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Using your bank card is the next best method of payment. The
following proof of payment is acceptable:
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photocopy of your bank statement clearly indicating the
date of the withdrawal from your account and the vendor
name.
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Payment by a supplier line of credit
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(Payment by supplier line of credit is only an option if it was
included in the original financing arrangement, as outlined in
your Letter of Offer.)
When you are purchasing large pieces of equipment or
constructing a building, you may open a line of credit with
your supplier to keep track of a large number of purchases,
and to make monthly payments on that line of credit. This is
an efficient method of tracking your transactions and is
considered an acceptable form of payment. You still need to
maintain all of the individual invoices for your purchases.
Any of the following proofs of payment are acceptable:
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photocopy of your account summary showing all of your
payments; or
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acceptable evidence of any of the other forms of payment
listed in this section, such as a cancelled cheque to the
supplier, photocopy of a bank statement, and so on.
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Payment by credit card
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ABC discourages this payment method
because it is much more difficult to verify that payment has
been made. Moreover, credit card payments are really loans, and
there is still a debt owed on that particular purchase. If you
must pay by credit card, you will need to provide both of the
following proofs of payment:
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copy of the invoice or receipt that indicates payment by
credit card; and
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photocopy of the cancelled cheque, bank transfer or bank
statement showing payment to your credit card company that
covers this charge.
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Payment by cash
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Paying with cash is the most difficult form of payment to
verify. This form of payment is discouraged for larger
purchases. If you must pay by cash, you will need to provide one
of the following proofs of payment:
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copy of the cash receipt showing the vendor name, address,
phone number, transaction number (if applicable) and
contact name. You may want to inform your vendors that
someone may be contacting them regarding the transaction;
or
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letter from the vendor showing a contact name and phone
number and verifying receipt of payment in full.
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Before You Apply | Applying to ABC | Once a Project is Approved | Once a Project is Completed
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