As there is a starting material that is required for the formation of a product the same holds true for business. If you are thinking of starting a business in Canada then the first thing that you should think about is the money. For any business whether big or small you require some funds to start it.

People have many luminous ideas but lack the money required to start a business on their own. For most of the people money for business is the major concern as it is the main thing that you need to start off a business. Coming to terms when you think of putting in your own business there is a very little amount that you could yourself provide. So it is better that you look out for other options like taking a LOAN. The maximum amount of loan that a small business can obtain in Canada is approximately $250,000.

In Canada there are quite a number of private as well as government organizations that give out loans to people who are willing to start their own business. To name a few lenders I can list Bank of East Asia; GE Capital Financial Services; Bank of Montreal; Caisses populaires de l'Ontario; Canadian Western Bank; Canadian Imperial Bank of Commerce; Mouvement des caisses Desjardins; Credit Union Central of Canada; Laurentian Bank of Canada; HSBC Bank Canada; National Bank of Canada; Royal Bank of Canada; Scotiabank; Toronto-Dominion Bank an the list goes on…….

In Canada the small business loans are given out to people to encourage them to start their own business or expand their business. With the help of these loans the person who wants to start or has a business already can apply and get funds to modernize the techniques that he has been using.

The Canadian government gives out loans for small businesses at reasonable rates of interest. The government gives the authority to the banks or other lending sources to give out loans to people who are willing to start a small business. The applications for loans can be obtained from any credit union or bank or caisse populaire or from any other financial institution. In Canada there are approximately 1,600 lenders in all the territories and provinces and these lenders are liable to take any decision about the lending and registering. These lenders are also responsible for the administration of the loans.

Now prior to approaching the lender you should have your business plan all set up in your mind. Well you should have the whole thing set in with all the money that you require and how much you would be investing for each section. Once you have all the thoughts and financial plan lined up then start approaching the lenders.

There are many things that you need to keep in mind before you start a business. Most of the people don’t know where to start. Well some of the start up costs would include rent; the utilities; insurance; advertising; security deposit; legal fees; inventory; bank fees; accounting fees; taxes; furniture; furniture for the office etc. After you have decided on your start up costs estimate how much will the start up cost you.

In Canada there are certain eligibility criteria’s that you need to fulfill to start a small business. Some of the criteria’s include that the business should be set up in Canada and should be carried out in the premises of the country itself. You should be able to establish that the business is being set up for profit and if your business is existing then the anticipated total annual income made from all the operations within the small business of the borrower must not go beyond $5,000,000 for the business’ economic year during which the loan is sanctioned, or for a new business the probable annual gross profits generated from all the ventures is within the small business of the borrower must not be likely, at the time the loan approval, to exceed $5,000,000 during the first 52 weeks of starting of the business.

The interest rates for the loan can be either floating or fixed. The floating rate cannot be over 3 percent higher than a lender's leading lending rate. Fixed rates cannot be more than 3 percent higher than the lender's housing mortgage rate for the term of the loan.

It is better that you go through all the rules and regulations prior to deciding for a small business venture in Canada. There are a lot of lenders in the market and you should be careful in selecting your lender. Besides get in touch with a professional who can explain you the conditions and the terms that are involved in seeking a loan. Also make sure that you clarify the tax terms that apply for small businesses.

Besides going in for a government loan you can also approach some private lenders. You should do some research on your own. You can look into the internet or ask your friends and family members who are into such types of business or have connections with people who are doing business. People who have already take loan can be of help to you out. Lending money is a risk on both the lenders’ as well as the borrowers’ side so plan well and then begin your venture remember that a start up loan is your first step towards your dream.

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