After navigating the COVID-19 pandemic, many small businesses in Canada continue to struggle as they face rising inflation and the looming possibility of a global recession. Despite these unstable conditions, 83% of small and medium-sized businesses in Canada still feel optimistic about their growth over the next few years, according to a KPMG study. Small companies should consider ways to recession-proof their businesses, and part of that is knowing their financing options before the need arises. We can help them proactively determine what they can or cannot qualify for and develop a plan to obtain the financing they need when they need it.
Business owners should prepare for when they may require capital to invest in their growth plans or, in some cases, access funds to help keep their businesses afloat if times get tough. It can be difficult for small businesses to obtain financing from a traditional lender, especially in these uncertain economic conditions. In addition, they may need more collateral to borrow additional funds. However, private lenders like Private Lender Inc. may be able to help these businesses get the cash flow they need to fuel their business needs and navigate this impending recession, where the banks can’t.
Loans to grow
According to the same KPMG survey, more than three-quarters of small and medium-sized businesses intend to increase their headcount in the next three years to drive their growth plans. Private lenders have greater flexibility to approve financing for individuals looking to inject money into their small businesses. A common strategy is to use the equity in their home to fund a private mortgage to finance various business needs. Proceeds can be used to hire new team members, open a retail location, purchase inventory, or manage cash flow, among other business needs.
Several types of private mortgages, such as shorter-term loans and flexible repayment options, may be suitable depending on the client’s plans and timelines. In addition, certain small businesses in lesser-known industries may also have difficulty convincing the bank to lend them money when there isn’t much precedent. This is an excellent opportunity to reach out to your private lending partner, who can take the time to analyze potential borrowers in new fields.
Easy solution, going private
Borrowers may also be interested to know that a private mortgage will help them get the cash they need into their hands faster compared to a traditional mortgage. This is because the personal mortgage approval process is much more straightforward and efficient than that of banks and other conventional lenders, which usually requires intensive documentation, including a detailed business plan, financial projections, personal tax returns, and more. Private lenders require less documentation upfront and may be able to work with people that don’t have a high enough credit score to qualify with the bank. In addition, these borrowers don’t necessarily need a large amount of collateral to apply.
Easies going private lender
As Canada’s premier private lender, Private Lender Inc. can offer flexible financing solutions to help small business owners. MortgagePRO Ltd is brokering all mortgages and equity loans. A licensed mortgage brokerage, providing private and institutional mortgages since before the turn of the century.