Bank Loans

If the loan request is for start-up cost purposes, it is not normally the bank's role to provide start-up equity. However, entrepreneurs with personal assets could use these assets to obtain funds to inject into the business.

If the loan is for working capital, there are a number of ways to secure financing which would depend on the individual business need. There are different financing alternatives to meet customer needs at different stages of the business life cycle. A bank loan is not always the best solution. Sometimes, an equity injection better meets the business short- and long-term financing requirements.

The Business Development Bank of Canada (  http://www.bdc.ca/bdc/home/Default.asp ) is another source of capital and loans for small and medium-sized businesses.

Each situation is different, and it is critical that a good business plan be developed to determine the overall needs of the business.