Business Financing & Development for Entrepreneurs
Today, we have Peyman Chalabi with us. He is an expert in business financing and development. Here are some of the most frequent questions among entrepreneurs and business owners in BC that he addressed them fully in his words with us.
Peyman, Welcome to Aleph magazine. We are happy to host you today. Tell us more about yourself.
Hello, and thanks for having me today. I’d like to start with our mission statement which is “Support Entrepreneurs to Finance and Develop their Business”. In fact, many business owners from different industries such as manufacturing, construction, agriculture, health, and so on, have developed their business via our management consulting services. We have also guided entrepreneurs to get financing from Financial Institutions. We are not a lender – we concentrate on their viability and support them with planning, training, and consulting. Businesses need help now more than ever!
How do you support Startup companies?
We assist Startup companies to pay their Startup fees, purchase assets, invest in marketing, and more by loans for up to $75,000. These loans in BC’s financial institutions start from 3.95% for women entrepreneurs to 5.55% for others, are collateral-free, and will be repaid in 5 years. Since the Startup companies have not built financials yet, so the major shareholders’ personal credit score matters the most for this category, and preferably scores more than 750 are fine! In addition, they need to have a solid business plan. Furthermore, under Canada Small Business Financing Loan (CSBFL) many Startup companies can receive up to $350,000 loan with an interest rate of 5.45% and repayments in 5 years.
They need to show their leasehold agreement, opening balance sheet, solid business plan, and between 10% to 25% liquidity in their corporate bank account as support to pay their rent, wages, marketing expenses, etc.
Could you explain your services in business advisory?
We help entrepreneurs to create systematic, purposeful and focused organizations. In addition, we assist them with strategic action plans in order to navigate their next steps. Our business advisory services are diverse, ranging from marketing and human resource to operations and financials. Needless to say that having a team of experts and analysts who can consult entrepreneurs in different languages is critical to help them with managing their business needs.
What do you offer as business financing?
In BC’s financial institutions, entrepreneurs may find working capital loans from $100,000 for Small and Medium-size Enterprises (SMEs) to up to $20 million for manufacturers. These loans have a 5.45% interest rate or more and need to be paid off in 5-6 years. Entrepreneurs can use this capital for their projects and everyday business activities, running marketing campaigns, upgrading their website and e-commerce, paying their suppliers, and employees, or hiring a consultant.
Are there financing products for entrepreneurs who need to purchase new equipment and machinery?
Absolutely. If entrepreneurs desire to expand and modernize their operations or replace outdated machinery, they can apply to get financing in order to cover the cost of new or used equipment. So, they can increase production and fuel their growth. There are many financing products and options for them in BC’s financial institutions, ranging from $350,000 to $50 million, with an interest rate of 5.45% and above.
They need to repay their loan in 6 to 12 years, depending on the financial institution they apply for their loan with. Also, they can apply for Line of Credit (LoC) with three-month repayment terms on their statements. Their accounting firm has to issue a Notice to Reader (NTR) and depending on the financial institution and the amount they need; their corporate account needs to get audited before application.
Some business owners would like to purchase their own commercial property. Do you also help them to do so?
For sure. In an average case, there are offers with 85-90% Loan to Value for commercial real estate purchase financing. For very strong applicants like with good retained earnings in the business, strong credit score, long business age, have net profit or rent (that they have been paying) that easily covers the mortgage payments, they might even do up to 100% LTV with interest rates starting from 3.25% and repayment in 25 years.
Thanks again for having me today and it is hoped that the above-mentioned information is useful for your valued readers.
