Small business is a major part of British Columbia, representing 98 percent of all businesses in the province, with approximately one-in-ten British Columbians being entrepreneurs of some kind. With that many businesses who are looking to get access to BC small business loans can feel like an uphill battle, either because you’re not sure where to start, concern over rejection from financial institutions, or not knowing all of the options available to you.
Whether you run a business in the city, up in the mountains, or along the coast, getting a business loan in BC doesn’t have to be complicated, it doesn’t have to take away from you running your business, and it doesn’t even have to be in person.
Small business loans Vancouver: It’s personal to us!
At Merchant Growth we work with businesses not only across the whole province, but the whole country for that matter. With our bilingual and cross-country team, we’re able to help merchants in a wide array of industries with their funding needs.
However, as a Vancouver-based company ourselves, we’d like to think we have that extra insight into running a small business in the area as well as offering commercial loans in Vancouver.
How to get a business loan in BC: Where can you get funds?
Like any other decision, it’s important to weigh the pros and cons of each option in order to find the right solution for your business in both the short and long term.
Traditional Financial institutions:
Conventional institutions such as banks, are often the first place that most small businesses turn to in their search for financing. Given their size and market share, it’s reasonable that this be the first point of consideration.
But with more restrictive qualifications and lengthy application processes, this is not necessarily the ideal solution for all small businesses. As you may be required to actually go in and apply in person, assemble a large amount of documentation, in addition to the time it takes to hear back from them, this can represent a substantial amount of time away from your regular day-to-day operations of running your business.
Government grants or loans:
The federal government as well as the provincial government of British Columbia have a wide array of grants, subsidy programs, and tax credits available. For businesses that qualify and successfully receive government funding, it’s an ideal outcome. However, with potentially lengthy applications, as well as a competitive market with a large number of small businesses across the province or country vying for the same grants, competition can be very high.
In the short-term a grant can be a great solution, especially as it represents funds that a small business owner does not have to pay back. However, as it is likely a one-time injection of capital, once that money is used, business owners should be aware of the other options available to them to continue to fuel their growth.
Friends and Family:
Some small business owners can (and choose to) turn to friends and family to help collect funds. While this is a great option for some, for others this is either not an option, or they decide it is not the right choice for them. As these are your friends and family, it’s extremely important to consider the worst-case scenarios. For example, not being able to pay them back in the time agreed upon, or them perhaps requesting the funds back earlier. Think carefully about whether it’s truly worth potentially compromising such an important relationship.
Venture Capital:
Certain small businesses choose to sell a percentage of ownership of their company in order to get the funds that they need. While this is an option that works out well for some in terms of additional financial support as well as advice that the advisors may be able to provide, each option comes with its own pros and cons.
This type of financial transaction, if done with the right type of individual could allow for a quick growth trajectory, and the business owner maystill be content with the profit connected to their portion of ownership. However, if the relationship is ultimately not a positive one, that investor still owns that portion, and will still have opinions on the future of your business which could result in ongoing conflict.
Business loan BC – What can you use it for?
You may have a specific use for the funds in mind, or you may be considering how the funds could help you plan for your business’s future or free up your available cash flow in the short term. Our BC small business loans can be used for any needs that your business may have. Some examples include:
- Cash flow: Even profitable businesses may find themselves facing cash flow challenges. Whether it’s due to less frequent deposits, waiting to get paid on existing sales, extra funds can help bridge that gap.
- Expansion: If you’re opening another location, building out your current building, or perhaps adding a patio, an injection of additional capital can help make that happen.
- Purchasing inventory: Whether you’re preparing for your next season, making an additional order based on a recent surge in demand of a particular product, or taking advantage of a promotion your distributor is offering, use the funds to stock up on the inventory your business needs.
- Hiring: Whether it’s the busy season, you’re opening up an additional location, or your business is simply growing, you can use your funds to cover the cost related to those extra team members.
- Marketing: Getting your company’s name out there is crucial to the ongoing growth of your business. Whether it’s local marketing such as flyers or print ad placements, or investing in online marketing, use the funds to get more eyes on your brand!
- Emergency funds: As much as you can try to plan for the worst-case scenario, sometimes the unexpected still happens. Whether it’s for sudden damage or repairs, or any other situation that adds an extra financial “pinch” to your business, funding can help you work towards resolution.
Merchant Growth’s small business loan BC options
Term Financing:
Similar to a traditional business loan, a term financing solution can help businesses improve their cash flow by providing an immediate injection of funds based on future credit and debit card sales. No collateral is needed and this solution offers flexible terms that factor in your business’s cash flow.
Business Line of Credit
A business line of credit is a revolving credit facility on which you only pay interest on the amount that you withdraw. Using a business line of credit from Merchant Growth helps you access the funds that you need while avoiding having to over-rely on or max out your business’s credit cards, ultimately providing an additional level of flexibility in how you manage funds.
Business loans BC: Merchant Growth customer success stories
Merchant Growth works with small businesses across the country, whether they’re in a big city, a small town, or anything in between, as well as those that operate in a wide array of industries, learn more about the experiences of a few merchants that we worked with and their experience with BC small business loans.
Shah Brothers
Shah Brothers is about more than food, their specialty grocery store is about bringing a sense of community and culture with their Indian and Sub-continental good and beauty products to the Prince George area.
While a consistently growing business is an ideal situation to be in, when it comes to keeping up with demand, and expanding, having the funds to do so can sometimes present a problem. With the desire to expand their offerings, Shah Brothers needed to purchase the inventory to do so, and turned to Merchant Growth to help them make that transition.
Read more about Shah Brothers’ experience working with us.
Big Star Sandwich Co. (Richmond)
Facing an unforeseen difficult start, having opened their location right before lockdowns began to take place Big Star Sandwich Co. (Richmond) quickly found themselves low on cash flow when it came to covering operational costs and bills while keeping their business open during the downturn in customers.
Financing from Merchant Growth helped Big Star Sandwich Co. (Richmond) weather the storm of closures and consequently overcome the slow period, helping them to move past that difficult time all while continuing to serve up their delicious sandwiches.
Read more about Big Star Sandwich Co.’s experience working with us.
ProTrack
Based out of Langley, British Columbia, ProTrack specializes in heavy equipment sales, rentals, parts, and support services. ProTrack turned to Merchant Growth for financing for tooling equipment, and so that they would not have to worry about a disruption in their cash flow.
With their Merchant Growth funding ProTrack was able to make the necessary purchasing and continue to grow their business without any major delay in their operations.
Read more about ProTrack’s experience working with us.
Business loans BC: What to prepare
As you begin your search for a small business loan in BC there are a few things that can get organized on your end in advance, or ensure you have easy access to, in order to help streamline the process even more. This can include:
- Relevant financial statements such as monthly bank statements, major contracts
- Proof of ownership
- Lease or deed to any physical spaces you rent or own
- Tax documents
- Business plan
Get started today with your small business loans BC
At Merchant Growth, we’re here to make small business financing simple and convenient. When it comes to getting a quick and convenient business loan BC, you can get between $5K-$800K in as little as 24h with our simple minimum requirements; being based in Canada, having a monthly revenue of $10K, and being in operation for at least 6 months. Whether you’re in need of a commercial loan in Vancouver, or BC small business loans for those located in other parts of the province, get started with us today!
