Three Non-Traditional Financing Sources for Your BusinessPosted by sabrina
If you haven’t had any luck securing financing from traditional sources and you think you’re tapped out of options for financing your business, not to worry. There are still many non-traditional options for you to pursue. Just like any other lender, these organizations require a business plan. However, unlike traditional lenders, these organizations are committed to fostering the development of businesses run by under-served communities such as youth, rural residents, and women. They provide useful workshops, coaching, and mentorship programs in addition to financing. Read below to determine if they might be a good fit for you and your business.
Canadian Youth Business Foundation
The Canadian Youth Business Foundation offers pre- and post-launch coaching, financing, and business resources for young entrepreneurs aged 18 to 39. The organization runs coaching and mentorship programs for business of all types including start-ups, business run by new immigrants, businesses looking to expand internationally, and businesses run by transitioning Canadian Forces members. Loans of up to $15,000 are available for start-ups and up to an additional $10,000 is available for expanding companies.
Community Futures Development Corporation
The Community Futures Development Corporation was set up in 1986 by the federal government in order to promote economic activity in the rural areas of Western Canada. The organization is designed to provide funds to entrepreneurs who have had trouble accessing financing from traditional sources. In addition to counselling services, the CFDC provides up to $150,000 in small business loans to rural entrepreneurs. In 2011-2012, the organization distributed 568 loans in British Columbia, which amounted to over $25 million in funding and an average of $44,000 per approved applicant.
Women’s Enterprise Centre
The Women’s Enterprise Centre supports female entrepreneurs by offering workshops, professional guidance, mentorship programs, networking events and business loans. Workshops cover topics such as starting, marketing and growing a business. They explain how to develop your vision, obtain financing, value your business, and everything that goes in-between. The WEC also offers business loans of up to $150,000 for start-ups, expanding businesses and business buy-outs. They have lower fees and fewer security and equity requirements than other lenders.
Have you come across a helpful non-traditional way to fund a small business that you’d like to share? Let us know below!