Starting a company can be a stressful process given that you will have to secure funding for all your needs. From equipment to office space, to hiring staff, every process involves money. Not everyone who wants to start their own business and be their own boss has the cash on hand to do all this. So, where will the money come from? There are many funding processes in Canada that are ideal to find the much-needed cash for a startup. Each one of the processes is different and suitable for different business types. Following are some of the most popular startup financing methods in Canada.
Bootstrapping is the process of funding your startup company from your own pocket. As already discussed, this is not possible for every individual. Only ones who have enough funds in their savings or assets can bootstrap their startup.
Bank loans are one of the most preferred funding options for startup owners but unfortunately banks prefer to work only with established brands or individuals with a spectacular credit history.
To secure the equipment you need, Priority Lending can help with a range of equipment lease-to-own options to get you the equipment you need, whether you are a restaurant, trucker, print shop, or spa… or just about any other kind of business!
Venture capital is the name given to companies that make the initial investment in the startups with strong growth prospects. In exchange, they get equity ownership in the startup.
Angel investors are wealthy individuals or retired management professionals who invest in smaller companies in exchange for a management role in the company along with financial returns.
Crowdfunding is the method of building funds using donation. Startups can turn to crowdfunding websites to fix a financial goal and achieve it through donations from family and friends.
In Canada, government offers various subsidies and grants to small businesses based on their industry. Getting funds through can be difficult because similar to banks, government also has quite strict rules and regulations when it comes to small business loans.