Tag: private funding

New Alternative to Small Business Government Grants in Ontario

Posted by WFG – October 7, 2011

The purpose of this article is never meant to be undermining the benefit of government grants. In fact, as small business owners, entrepreneurs should always be aware of government grants available to their companies. That said,  except for some specifically allocated funding for government subsidized innovative projects, government grants in Ontario usually come in small amount, and could hardly be count on in terms of facilitating business growth.

 

Private funding is now available for small businesses in Ontario

A great alternative to traditional funding options for small businesses is available. Many private investors are now offering financial opportunities to small businesses with great potential. Funding of such is often referred as venture capital. The transaction is straight forward, venture capitalists basically purchase part of the company based on a strong goodwill forecast, and the company seek fast growth opportunities with the extra capital invested.

The benefits of private equity vs traditional ways of funding are:

  • amount is large enough to fund the business with the desired expansion
  • no collateral is required
  • no complicated approval process such as bank loan applications
  • investors are usually experienced business professionals where the company could get valuable advice from

There are companies and individuals where small business owners can turn to for private funding opportunities. For business owners in Ontario, check out pitchyourbusiness.ca for opportunities to meet a group of venture capitalists in Toronto.

Researching Private Investors

Posted by WFG – June 13, 2011

Starting a new business is not an easy task and many companies will need funding. There are different methods to doing this but one of the best is finding private investors. It’s always good to research and find out the variations in styles and where to look.

  • Finding your private investors is the first job. You may know a family member or a friend that is willing to help. Though you may have a good working partnership with your investor, if things take a turn for the worse it may lead to financial difficulties with someone close to you.
  • Angel Investors are another option. These private investors will help a small business create a reputation and begin making profits for themselves. They can be found on various websites, such as www.gobignetwork.com, and will invest up to $500k.
  • If you need a larger sum then you may want to try venture capitalists. They will invest millions of dollars into new companies but this will come at a cost. Firstly you’ll need an attractive business plan that appeals to the investor. If there are minor problems with the plan you may need to comply with their alterations. Despite restrictions they may impose, using venture capitalists is a great way to gain the investing required to start your new business.

If are starting a new business and need advice, contact the Winflow Financial Group. You can discuss business related queries with trained professionals who have an extensive knowledge of the industry.

Funding Available to Aboriginal Business Owners in Canada

Posted by Winflow – June 8, 2011

If you are an Aboriginal business owner in Canada there are number of resources and funding available to you. Through the Aboriginal Business Canada program, small business owners can receive help developing business plans, securing non-repayable funds and accessing lenders if necessary. Funding available to Aboriginal business owners includes:

  • Individual entrepreneurs can receive up to CAD$99, 999 worth of assistance if they qualify.
  • You could receive up to CAD$1 million if you operate a community-owned business.
  • Non-commercial projects like special events that cover Aboriginal entrepreneurship could have 100 percent of the costs covered.
  • The amount of support you receive is determined by a number of factors including the need for financing, the scope of the project and what other funding options are available to you.
  • You must offer equity in your business for the loan. It is usually between 10 to 15 percent of your company.
  •  Different projects get different percentages of funding. For example, you could get the costs of implementing marketing techniques subsidized by up to 60 percent.

If you are an Aboriginal business owner interested in ao funding from the Canadian government, read this guide.

For more articles on funding assistance please read the following:

To learn more about other funding options available to your small business, call the Winflow Financial Group at 1.800.956.6897.

Private Funding for your Small Business

Posted by Winflow – June 6, 2011

It isn’t always possible to get a loan from the bank to fund your small business. Private financing can be a good alternative if you want to retain more control than you would if you chose to partner with a venture capitalist or an angel investor. Here is some information to keep in mind when considering private lending:

  • Private funders are comfortable giving loans the bank won’t provide and can also assist you in structuring your loan repayment plan.
  • Most private lenders expect the same information you presented to the bank.
  • It is good idea to have contingency plans ready to present to private financers.
  • Private lenders are more likely to back high-risk ventures, understanding the opportunity and risks involved.
  • Present accurate business forecasts and make sure your idea is backed by experienced professionals who ideally have a financial stake in the business.
  • Most private lenders keep a relatively low profile so finding them can require some assistance.

If you have been turned down by the bank and are interested in seeking private lenders, Winflow Financial Group can help. We are a team of senior consultants that can give you the exposure to private funding that your small business requires. To request a free consultation, visit our site or call 1.800.956.6897.