Tag: finance

Starting a business or expanding one needs a big idea and along with it, one needs to have big finance backup too. While some businesses might be lucky to have all the financial needs for their venture, which is a rare case, some might not even start due to lack of finance. Finance is a kind of fuel to innovative ideas without which the business may not move forward.

And when it comes to raising funds for a start-up, a borrower has several options like asking close relatives, taking a loan from a bank, crowdfunding or taking funds from a private institute. Banks have a higher interest rate for loans and also the approval process for the bank loan is normally long and tedious. Hence, it is a better option to borrow funds from a private lender like merchant lenders.

A spa or a wellness care institute requires several machines, staff, location and space for proper operations. All these requirements need to be financed and sourcing this kind of capital is never a walk in the park. While the Canadian government promotes and helps the start-up of small businesses, a proper lender or financial organization must be approached in order to get complete information and help about the Canada Small Business Financing Program.

What are the available options for finance for a small spa and wellness care startup in Canada?

Taking Government help

The government of Canada supports small businesses by providing around 1 million dollars, which can help a business to grow to the next level. However, for the entire application and approval process, a reputed merchant lender needs to be approached so that the application passes through appropriate channels and is approved. 2% of the loan amount is to be paid as fees to the government, and 3% needs to be paid to the financial institution which assists individuals in the application process.
There are several terms and conditions based on which one can get a loan from the Canada Small Business Financing Program. So if one does not qualify for this program, then there are other options to choose as well.

Cash Advance Financing

This system works like a credit card. It allows an individual to withdraw the amount from the credit card based on the sales volume of the business. It can be used in case of emergencies. This mechanism is an excellent and innovative line of credit for small and medium-sized businesses in several sectors. It can help in emergency situations like staff shortfall and machine repair as well as to increase the cost of raw materials or rent. The approval of this loan is done on the same day of application in 95% of the cases. Major advantages of this system include flexible payment options, latest technology usage, and a secure funding stream.

The line of credit

This option is quite different as compared to the standard loan taken from a bank. It allows individuals to have a reserve of funds where they can make a withdrawal according to their needs. Interest is to be paid only on the amount that is withdrawn. There is a maximum limit set on the line of credit. So with the line of credit, there comes a backup of funds in case of emergencies as and when finance is needed.

Apart from these options, the traditional bank loans are also available as finance options in Canada, even though they require several documents and approval mechanisms to be followed.


Financiers are crucial to businesses and the society alike. They come in when a business is in need of money to keep things moving and offer necessary help. It may be on a cash basis, a safe platform to perch the business or financial advice. Most business cannot survive purely on their own due to various factors as inflation and other losses. It is crucial as a business person to know various times when a business needs financial help from this institution. Below are the common instances.

Instances when a business need a loan

hands around euro signDuring a start up

Even through some business people start their businesses through savings or from their other businesses, most people get a startup loan from banks and other institutions. In such a case, the financier will need to assess the business plan to assess the viability of the business. They will also agree on a repayment plan which consists of time and rate.

After an economic recess

When the whole economy is struggling as a result of a recess, most small scale and medium businesses are affected. While most will close shops, others will seek financial boost from the financiers. The lender may limit depending on demand for loans or the current situation which can affect the repayment period negatively.

During business expansion

graphic report If one has seen a great opportunity to expand their business, then there is no need to leave it out. Most people will approach financiers and present their case to show the need of a loan. In such a case most finance institutions will need a detailed report of the business growth over time, how they have handled previous loans if any and more so, why they see a possibility for growth.

When in need of a quick cash advance

Some businesses just need a quick cash boost at various times of the month, and some financiers have specialized in just that. In such a situation, one will not be required to produce a lot of supportive documents as the cash is limited to a certain amount. In fact, may not need to visit the bank to enjoy such a loan. They can be advanced using a mobile or online money transfers.


Now that any business person has known the various instances a business may need a financial boost, it is crucial to identify a reliable financier who will be considerate of your needs when they arise.


Unsecured loans refer to loans that are issued to borrowers without collateral or security and only relies on the creditworthiness of the borrower. These are loans that are obtained at a higher risk to the loaner as there is no property to cover the loss if you default and you are unable to pay back. It is also referred to as a personal or signature loan. Unsecured loans have in the recent past, been issued quite a lot. This is as a result of the increasing demand for quick short-term money and its easiness to access. However, for you to qualify for these loans, you must have high credit ratings.

Advantages that come with unsecured loans

Does not need collateralfolded money

Unsecured loans are easy to access. This is because you will not need anything to give you equity. It means that you already qualify for this loan even if you do not have any property under your names like a car, house, boat or land. This is good because you will not lose anything if you default, or you are unable to pay unlike other types of loans that banks come and recover personal properties as collateral.

Easy to receive

Unlike other loans, unsecured loans are easy to obtain. Approval is always immediate compared to other types of loans, where you have to provide the personal property such as legit title deed for land and log book for a car to access them. With the unsecured loan, you can apply and receive your loan approval in a matter of hours. This makes it ideal in case of financial emergencies.

Minimal documentation

booksUnsecured loans are flexible loans that do not require a lot of paperwork for you to receive them. This is good because it will cut on time and you will be able to get your loan faster compared to other types of loans that require lots of paperwork and senior personnel to approve. All you need to check is ensure that your credit ratings are good.

Additional flexibility

Since unsecured loans are provided based on the borrower’s monthly income, getting that extra cash can be used to expand or start a business. Unsecured loans are flexible because modes of payment can be changed and agreed upon between the lender and the borrower in case of an emerging issue.