# 8 # 8 NEED MONEY?!? NEED MONEY?!?

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1 # 8 NEED MONEY?!? Financing Your Business $$ Needs Security Government Funding Local Funding Employment Programs Training Programs Partnering 1

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4 #1 Good Personal Credit Your personal credit will be evaluated even when you are applying for a loan under the name of your business. #2 Good Business Credit Once a business has been in operation, a business needs good credit to be considered for a business loan. #3 Asset Base Most business loans are secured against an asset. Collateral is required for most start-up. #4 Solid Business Plan A business plan reflects the estimated profitability of a business in years to come. #5 Industry Experience It is rare to get a loan for a business you have no experience in. If you have no experience in an industry, add some experience to your team by seeking advisers. 4

5 ABORIGINAL BUSINESS Self employment growing 5 times faster then non- aboriginal 37% are hiring and training employees 37,000 self employment (+38% since 2006) 63% have no employees 33% use Annual Business Plans 55% use personal savings for startups 17% use government programs (grants, loans) for $ SOURCES OF MONEY Love money. Personal, family, friends. Overdraft. Covers shortfalls in your account. Approved limits. Interest on balances. Credit cards. Short term loans offered. Little or no security. Do NOT borrow on cards themselves at high %! Operating line of credit. Loan with a set limit. Lower interest than credit cards. Security needed. 5

6 SOURCES OF MONEY 2 Terms loans. Capital equipment, real estate, renovations. Established terms of % and repayment. Security needed. Equity. Partnerships. Shareholders low interest. Flexible repayment. Grants. Most attractive. Lengthy paperwork. Each agency has own criteria. 6

7 NEDC's Business Development Officers (BDO) have expertise in developing the best funding package for you. Contact them today to discuss your business financing needs ( or in Port Alberni ). YOUR CREDIT RATING Your credit history and net worth will determine the do-ability and terms of any funding. May need co- signatory or more security. 7

8 ONE CHANCE You have one kick at the can to make a good impression. Funders HATE change. APPROACHING A FUNDER CHARACTER. Ability to manage; expertise; skills, determination, confidence CAPACITY. Well thought out Business Plan CASH FLOW. Ability to repay, ride through slow times, manage cash well COLLATERAL. Security to guarantee funding, as necessary 8

9 HOT BUTTONS Every yf fund has its REASONS FOR BEING THERE. Find the HOT BUTTONS and make sure you push them.repeatedly. Loans AVAILABILITY Credit terms Micro Loans Grants Reimbursable grants Awards Foundations / gifts Corporate or agency support 9

10 6/1/2015 TARGETED $ Self Employment Newcomers Disabled Agriculture Fisheries Farming Cooperatives p Social Enterprise 9. Technology 10 Aboriginal, 10. Aboriginal Special Interest Groups 11. Environment ( Green ( Green ) ) 12. Wage Subsidies p g 13. Exporting 14. Non Profit IF THEY SAY NO Ask why? What areas of the business did they like and NOT like? Suggestions to make it fundable? Were you asking for too much? Risk factor too high? What Wh t will ill it take t k to t say YES YES?? 10

11 RESEARCH THESE Women s Enterprise Centre Loans Program Small Business BC Ministry of Small Business Canada Business First Citizens Fund Strategis (info search) MORE RESEARCH SITES Business Development Bank Community Futures ca Service Canada Canada Business : Service for Entrepreneurs Canaan Youth Business Foundation 11

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15 DON T BE A KNOW IT ALL Funders like to be viewed as helpful and knowledgeable, and directing you to the right $ program. LET THEM. Be informed before you meet, but let them take the lead. 15