Conventional financing is what most people think of when they think about loans; such as bank loans and lines of credit. There are different types of conventional financing available, depending on many factors such as the maturity of the business, your financial records to date, and your future growth prospects.
Where to find conventional financing
Visit the Canada Business Network – they maintain a detailed list of financing sources. Some sources are national (available to businesses throughout Canada), while others are regional (available only to some areas in Canada).
Types of conventional financing available
Your options for traditional equity financing include:
- Angel investors
- Venture capital
- Initial public offering
See the Canada Business Network for more detail about equity financing options.
Types of traditional debt financing include:
- Business loans
- Lines of credit or operating loans
- Credit cards
- Supplier credit
- Commercial mortgage
A detailed description of debt financing types is available from the Canada Business Network.
Other financing options
If these debt and equity financing options don't meet your needs, you can also explore other private sector financing options:
- Love money: loans or gifts from friends or family
- Advance payment: asking for a deposit from your clients before beginning work
- Factoring: selling your accounts receivable to another business for a percentage of their value
- International trade financing companies: Financing from outside Canada
- Specialized financial institutions: Non-traditional sources of financing
Want to know more?
If you still have questions, talk to our team. We'll help you find the answers you need.Contact us