Free consult & free copy of book

E-Myth – “Why most small businesses don’t work & what to do about it”

Contact Us


Most 5 star CPA Google reviews in Canada

Read Reviews

Chartered Professional Accountants E Myth

1 Fixed Monthly Fee - Planning | Accounting | Taxes | Consulting

Helping Canadian businesses beat the odds!

CFO Services | CS BFP For Success

CFO services understands the fact that often business owners: going to need cash for the operations of their small business. However, when they look back previous in the business they didn’t necessarily finance some of the hard assets that are comparatively a little easier to get financing on.

The Canada small business financing program, or the acronym CS BFP loans under that program. Small businesses can qualify. It is legitimately a definition as a small business as companies that have less than $10 million in revenue.

This is legitimately the threshold, says CFO services. People don’t often know about the CS BFP and this is a program that is backed by the federal government. It is available to anyone who is approved.

The main benefit for banks with the CS BFP is the feds are basically guaranteeing the loan. The bank legitimately and honestly knows that they are never really going to default which is particularly fantastic if you are a bank. If you are involved in a risk your project or if you don’t have as much history in the business, as it is a new small business, a bit is my qualify for a CS BFP bear in mind, says CFO services, however that this is not a conventional commercial loan. They are backed by the Canadian federal government.

It is not necessarily a bad program, however there are some disadvantages. The main disadvantage, according to Spiro and Associates, is the paperwork. The bank is going to have to coordinate with the federal government and the banks can’t set their own legitimate policies. What can happen is there have to going to go through a lot of details with a finetooth comb, and coordinate with the feds to make sure they are going to agree to it.

Likewise the going have to back alone in the event of a default. They’re going to take the banks a little more time with which to qualify, and process loans. This is great on one hand as they can guarantee from the feds. However on the other hand this could be a very big disadvantage, as they’re going to spend a lot more time and money getting a loan approved by the Canadian federal government.

Usually the small banks, including the small credit unions and the smaller institutions, insecure Ellis opinion, are more likely to lend into the program. Oftentimes in Alberta they can go to ATB and the more likely to lend at service credit union or even some of the smaller banks.

Once in a while, the big bank will in fact lend it out according to the CS BFP. Although it is not necessarily uncommon for the big banks to say that they are going to lend and have such bad terms that you’re absolutely not interested. The big banks will potentially say that yes they can process the CS BFP, but will only going to lend 50% of the asset value. That is not legitimately a good deal for the lend the.

What Kind Of CFO Services Are You Looking For?

The lending process, according to CFO services, is a combination of a maximum of $1 million. This could be any particular combination of small and hard assets. The hard assets can include equipment, leaseholds, and are capped at $350,000. However you can combine that with a real estate combination which is a separate At $1 million. The total loan is a $1 million limit and it is a hard limit for any combination.

CFO services says that the interest is very much unlike any conventional loans. The CS BFP is a set rate and they can’t choose what to charge you in terms of a set rate. It is usually prime +3%. Prime +3% or potentially 6.75% is usually the middle-of-the-road interest rate. That obviously will float with prime, so if prime goes up the loan will go up. If prime goes down then obviously the loan will then go down. Bear in mind that there is also a financing fee which is a one time fee of 2%. That is only in year one, and it helps to mitigate some of the processing fees at the bank are going have to deal with.

Banks consider request security on that particular CS BFP. It was very different five years ago, says CFO services, but the banks could not ask for is something that they could five years ago. They couldn’t ask on that security. Now the banks can ask for a personal guarantee on that entire amount.

The entrepreneur is only going to do this on something that they think they are going to need to pay back.

They no longer have a no risk or a limited risk product. You are legitimately potentially going to be on the hook for the entire loan if you are not careful.

Bear in mind that you are served are going to be taking on a lot of the risk. If not all of it. There you are going to need to do a business plan. Owners don’t have a plan to pay the loan back are usually in a lot of trouble. It is not common to be approved for this CS BFP, but some business owners don’t have a plan to pay the loan back. The small business banker tends to be a steppingstone position.

If that small business banker are good, they will get approved and promoted, if they are not good, they will simply be let go. No one usually stays as a small business banker. Consider the fact that that business strategy has to be solid in order for it to work, and for you to be able to pay it back just because you legitimately got approved by the banks. Does not necessarily mean you’re going to be able to pay it back. You do need a business plan before, not after, you qualify for these loans. We know your financials and other things in your business can be really tricky to handle which is why we are here.