Need a small business loan? Here are some tips to help you succeed and traps to avoid

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Need a small business loan? Here are some tips to help you succeed and traps to avoid GlobeSmallBiz

. The most recent report, from 2016, gives credit unions high marks. “Credit unions are often a really good source of lending for small firms, and I think a lot of people forget about them,” says Dan Kelly, president of CFIB.Make sure the financing you’re pursuing makes sense for your business, needs and situation, Ms. Richardson advises. She has seen business owners stuck on thinking they need a specific product, when a different offering might make a lot more sense for them.

Mr. Schnurr says Jaza has grown through “an interesting mix of capital,” including a loan from the Atlantic Canada Opportunities Agency, a commercial loan, venture capital and individual equity investments. The interest rate for financing can be negotiable. He has seen both banks and online lenders lower a rate from their initial offer after he asked if they could. Ms. Richardson notes that some products come with application fees, which may also be negotiable.

“People may need to borrow because they need to pay their contractors. But they can’t borrow because they haven’t got their money from their customers, and they’re not good at tracking that. So it’s an endless circle of despair,” Mr. Zakharia says.

 

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