Business Financing FAQs
There can be many important questions for anyone owning, or thinking of starting, a business. Here's some questions to consider as you start your business finance planning.
How do I get a business loan?
At Community Futures, we start the process with you meeting one of our Business Analysts, either by phone, in-person or we can do an online meeting. They will get to know you and your business ideas in that initial meeting.
Next steps are usually providing us a business plan, revenue and expense projections, and personal information that includes a net worth statement and permission for a credit check. They will then take the time to review all the information and work with you over a series a meetings to determine the best loan options for your business needs.
What interest rates do you charge?
A number of factors are considered when determining what the interest rate of a loan will be. Currently Community Futures' interest rates vary between 8% and 11%. Community Futures Cowichan offers variable interest loans priced at RBC prime rate plus 3-5 points based on risk.
How much can you lend or what’s the biggest loan you can approve?
Typically our biggest loan is $150-$200,000. We can consider larger deals by working with other CF Offices or Banking Partners to put together a syndication loan when a client can meet our lending criteria.
Yes.
A business plan provides a lender with insight into your business. Including a financial plan will also help show the business' viability and profitability.
Your unique Business Plan becomes a 'roadmap' to follow and a tool that will measure future performance.
It depends. The sooner requested information is submitted, the better!
Loan requests up to $25,000 usually take up to 10 business days (from application to money in your account).
Applications greater than $25,000 may take up to 20 business days. Delays can occur when an application is incomplete or additional information is required from the applicant.
Yes.
As part of our due diligence and a step in the loan application process, a credit check will be conducted through Equifax. This is part of the personal information verification process and only undertaken after the business has been deemed viable.
If a personal or business bankruptcy has occurred in an applicant’s past, more information will be sought in order to determine its relevancy to a loan application with Community Futures.
Financing is available for starting, aquiring or expanding a business in the Cowichan Region. Funds may be used for capital expenses, start-up costs, leasehold improvements, inventory and working capital.
No.
Community Futures provides repayable term loans for small businesses and entrepreneurs.
For a New or Start-Up Business
- A business plan with financial projections
- Personal Information (form provided)
- Personal Financial Summary (form provided)
- Additional information as requested
For an Existing Business
- A business plan with financial projections (in some cases a comprehensive overview will suffice)
- Accountant prepared and/or in-house financials
- Personal information (form provided)
- Personal Financial Summary (form provided)
- Additional information as requested
We encourage you to research all available investment and financing options and decide which one best suits your needs or situation.
Community Futures is a developmental lender. Banks and credit unions are community partners that refer clients who cannot be approved for a small business loan, as we offer flexible criteria and ongoing business support to our clients.
Neither, Community Futures Cowichan is an independent non-profit corporation run by a local Board of Directors that provides financial and non-financial assistance.
For additional information on business services or financing, contact CF Cowichan at 250-746-1004 or via email to book an introductory meeting and discuss your needs.
