Mythbusting How to Get Funding
It’s not always easy to start-up or continue to grow your business. Sometimes it takes great fortitude to keep going especially during a time of uncertainty. The financial challenges associated with COVID certainly hasn’t helped. What can a business owner do to get back on solid financial footing and continue to build their business and follow their passion? This week on our live we hosted Alexander Bertok from BDC to discuss the common myths and challenges businesses may face when seeking funding.
What is BDC and how do they help Business Owners access funding or applying for a loan?
Recognize that applying for a loan to grow your business is not a bad thing. Consult your accountant, lawyer and team of professionals to get perspective on what the needs of your business are and how you can make the most of the funds you are applying for. BDC has an advisory team who can help you as well. Bottom line: Consider leveraging OPM- other people’s money to build your business. Keep in mind when you borrow it’s a tax deduction to borrow to invest in your business and use that money to build your business can be a game changer for the business. The key is not waiting the last minute to get the funding your business may desperately need.
Why is it important to not wait to get the funding you need?
Cash is king. The truth is when you are in good financial shape it probably seems like the worst time to apply for funding- you don’t need it. But that is precisely the point. When you look good on paper to the bank you have more certainty that the funds will be available when you need it. Ask yourself how can not having the funding when you need it impact your business? Will it hold up making payroll, or being able to take on a larger client? What we have learned during COVID is that even if your business is doing well now, sometimes circumstances can change much sooner than expected. Having access to the loan or line or credit at that time means your business has been vetted by the bank at the best possible time instead of at the worst possible time in your business. Asking for financial support for your business is like applying for insurance, you are less likely to get it if you really need it.
What are the pro’s and cons of working with BDC versus working with another bank?
BDC tends to more small business owner friendly and more likely to work with you to get the loan or funding you need. They will also work with other banks and collaborate with other banks to compliment a loan you may get elsewhere. Even more important, BDC will also offer advice on what you may need to do to get the funding you need and help you think about what you may need to do next to put your business on the right footing. This service is offered through advisory service channel as well as providing free resources on https://www.bdc.ca/ website. The goal of BDC resources is guide entrepreneurs to build their confidence as they navigate their business-especially during the pandemic.
Know your numbers
At the end of the day, applying for funding means you need to have a good sense of your business’s financial health. If you are a business owner who still doesn’t really understand what is going on in your business- NOW is the TIME! Seek out the services of a tax advisor, or a fractional CFO who can run the numbers of your business with you and helping you to understand the financial statements associated with your business. If you don’t feel you are currently getting the information you need from your current advisor now is the time to get a referral to someone who can help you to have a better relationship with the numbers in your business. Seek out a tax advisor in your business instead of a tax filer. If you are not sure how to identify a good tax advisor reach out to our team and we will send you a resource entitled how to identify the difference between an advisor and a tax filer.
What are some misconceptions around funding during COVID?
If you are applying for COVID loans and you don’t need them this may have unintended consequences for the business. You may risk be seen as a higher risk when applying for loans during the future and you may also open yourself up to an audit in the future. On the flip side, if you are a service-based business who may not want to apply for a COVID loan as you are not expecting to need funding, waiting to apply for funding you may need later may hold up the process to the detriment of your business. As you cannot always predict what the future holds creating as much financial certainty in your business as possible is crucial.
Cultivate a community of like-minded business professionals
Running a business can be tough and it great to have support from a like minded group of entrepreneurs who understand the struggles and victories of entrepreneurship. Cultivate a community of entrepreneurs you can lean on, and share information about best practices. For a complimentary assessment on how you can build your business’s financial IQ or references to our team of professional tax advisors, reach out to our team at info@askjackie.ca
More Financial News & Events
Creating Financial Transformations
May
Building A Brand Effectively in Second Quarter – A Conversation with Cassie Drake
May
How to boost your business mojo – A conversation with Valeri Hall Little
Apr
How to make a financial fresh start second quarter? 5 principles from Jackie Porter
Apr
The #1 Challenge that Leaders Face, from the Founder of Green Apple Consulting – Lisa Mitchell
Apr
What is entrepreneur resilience? A conversation with Karen Dean
Mar
Barriers that Women Face to Access Healthcare – A conversation with Sara Byrnell
Mar
Six Action Steps You Can Take To Build Your Financial Confidence
Mar
How do we build lasting relationships and what leads to the honeymoon being over? A conversation with Gary Direnfeld
Mar
Re-visiting the Wedding Ritual in 2022
Feb
What Does a Private Investigator Know About Love, Money & Relationships
Feb
Myth-Busters: Everything Small Businesses Should Know About Funding
Jan
Slay Your Impostor Syndome
Jan
How to Form A High Performing Team for Your Business
Jan
2021 Holiday Shopping Trends and Tips to Help Your Wallet
Nov
How to Financially Start Your Divorce Journey
Nov
Divorce Planning in the Pandemic
Nov
How to Deal With Financial Trauma
Oct
Lessons for Small Business Owners in 2021
Oct
Small Business Resources for Start-ups
Oct
Top 6 Real Estate Trends and Strategies
Oct
The Importance of A Mid-Year Tax Check-Up With Your Accountant
Sep
Top 8 Business Finance Tips for Business Owners
Sep
Pricing Strategy: How to Charge and Manage Your Clients
Sep
Everyone should have multiple income sources
Sep
How to Manage Back to School Season in 2021
Aug
How to Start a Small Business at Home
Aug
How to Become an Empowered Leader
Aug
How to Tame Your Spending Dragon Post COVID
Aug
What does financial planning look like at different life stages?
Aug
5 Factors to Consider When Moving Out After Divorce
Jul
Service-Based Businesses Post-Lockdown
Jul
Financial Planner vs. Advisor
Jul
Estate Planning: How to be Proactive Around Your Will
Jul
Women’s Health Initiatives in Canada
Jul
How to win with higher investment risk
Jul
Celebrating Pride 2021 and Identifying the Challenges of the LGBTQIA2S+ Community
Jun
Travel Restrictions between Provinces and Countries This Summer 2021
Jun
How to Support Small Businesses during the Ontario Reopening Plan
Jun
Treat Cash Flow Like Royalty
Jun
Financial Planning for Lawyers: Working with Lawyer’s Financial
May
2021 Federal Budget Programs to Help Childcare
May
Investing Tips For Empowering Women’s Confidence
How to Find Investors for Women Owned Startups
May
Top Work Benefits for Executives
You Can Have It All! Invest Responsibly and Profitably
May
How to Reduce Financial Stress
May
Gender Differences in Approaching Financial Management
Apr
Investing Tips For Empowering Women’s Confidence
Apr
Tax Filing Tips for the 2020 Tax Season
Apr