Hi everyone,
I am a new member on CD and am finding it a good source of information. I am currently a student. I have applied for immigration and hopefully should get it in a year.
I plan to start a business of my own. I just wanted to know from senior members here how much can one get from a bank easily. Do they require any collateral? say if i invest 100k can the bank match the same contribution?
samosa

Depends upon your credit history here. Your money down & your experience in business, business plan.

There is no such thing as "easily". Put yourself in the lender shoes and think if somebody from a foreign country come to you and ask you to put money to match the contribution will you do that? It is common thing to demand a secirity in terms of collateral.

Mercury

thanks mercury for your reply. i am trying to build up my credit history since last year. i have credit limit of around 10000 and in next year will try to improve my credit score.
i have also heard about line of credit. what is a difference between a credit card and a line of credit.

Line of credit are two types
1 secured against collateral (property, equity etc) usually at lower interest
2. unsecured banks take the risk. ususllay at higher interest
Both have options to pay interest only.
Credit cards for purchases only. Cash incur interest immediately & it is very high say 18-29%. Both get reported to the credit agency like equifax & transunion.

For business loans credit score is important as well as how much down and your business plan and experience.

Mercury

Quote:

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Originally posted by samosa589

thanks mercury for your reply. i am trying to build up my credit history since last year. i have credit limit of around 10000 and in next year will try to improve my credit score.
i have also heard about line of credit. what is a difference between a credit card and a line of credit.

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The usual ratio is 30:70. For every 30K you put bank will put 70K. The most important part is your business plan. There are loan consultant who can arrange this for you. If you are a new company then bank might ask for more security in terms of personal garantee or collateral. Hope this helps. get in touch if you need further information.

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Dude

Look for the govt agencies that help with small businesses . They often offer FREE help with orientation sessions, loan avalability info/funding bodies etc, business plan consultations besides giving you contacts that will help you setup the business. They will also help you with other issues in procuring the loans from the banks.

Do not underestimate the help you can receive from these agencies
e.g:
Under the Canada small business financing programme, one can avail of big loans(few thousands to few millions) if one has a good business plan and ability to follow through. 80-85% of the lenders losses is guaranteed by the Feds, incase of default. Thats a powerful incentive for the banks to lend you the money.

Similarly there are a host of other programs(e.g: young entrepreneurs program etc) which makes grants/loans and other forms of help, available.

It will be well worth your time to get info and meet/develop relationships with these agencies.

http://www.grants-loans.org/index.php

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