Alternative Sources of Financing
CIBC is committed to providing a wide range of financing options to our Small Business customers. To complement our line of products, we have compiled a selection of alternative financing solutions.
Note: The links below will take you to sites outside the CIBC website. CIBC is not responsible for these sites, their services, or how they use information you give to them. Our privacy policy will not apply once you've left our website.
Canadian Youth Business Foundation
CIBC is pleased to be one of the founding members of The Canadian Youth Business Foundation, established in 1996 to provide business support services to Canada's young entrepreneurs. Part of this support includes the essential start-up credit needed to get those great ideas off the ground. To date, The Canadian Youth Business Foundation has helped more than 450 young Canadian entrepreneurs. For more details, please visit the Canadian Youth Business Foundation website at www.cybf.ca.
Who should apply
Young Canadians 18-34 years who:
- are unemployed or underemployed and eligible to work in Canada
- are unable to raise the necessary finances from banks, families or other public and private sources
- prepare a sound business plan for a business registered in Canada
- identify a personal mentor, acceptable to Youth Business, who will provide guidance and counseling to the proposed business
- have completed an orientation and training program offered by an acceptable enterprise, facility, business school or college
Canada Business
Canada Business provides Canadian business people with a wide range of information on government services, programs and regulations. Start-up entrepreneurs and those established small and medium sized businesses in any sector will find them especially helpful. The current network of twelve centres, one in every province as well as the NWT and the Yukon, is the result of cooperative arrangements between federal and provincial governments and, in some cases, the private sector.
The Canada Business network is expanding to include regional access partners in many other communities across Canada. Most of these organizations, who already serve the business public in some way, include: Economic Development and Community Futures Corporation and Chambers of Commerce.
For more information, please visit the Canada Business website at www.cbsc.org.
Business Development Bank of Canada
The Business Development Bank has a number of financing products available to serve the small business community. They offer a number of management and skills development courses, as well as mentoring programs for small business owners and managers. For more information, please visit the Business Development Bank of Canada website at www.bdc.ca.
Who can benefit:
- young entrepreneurs, 18-34 years of age
- start-up businesses with consulting needs
- those wishing to expand an existing business or develop new markets
- anyone wanting to finance any type of fixed assets, including the purchase of an existing business
- existing businesses, planning to expand and wishing to "top-up" their existing line of credit at a Canadian chartered bank
- businesses with insufficient hard assets to secure a traditional bank term loan, but do not wish to dilute ownership with traditional venture capital financing
- knowledge-based businesses with a market-ready product, strong growth potential and high product margins
- existing businesses with strong market positions, dynamic management and strong growth potential
- cultural businesses i.e. book and magazine publishing, sound recording and music publishing, film and video production, and multimedia and CD-ROM production
Canadian Commercial Corporation (CCC)
CCC is a crown corporation that was established in 1946 to:
- assist Canadian businesses selling to other countries
- help companies through foreign customs, regulations and currencies
- serve as an international trade facilitator
- act as prime contractor
- offer a wide range of contracting services
For more information, please visit the Canadian Commercial Corporation website at www.ccc.ca.
Who can benefit
Small and medium-sized businesses selling around the world:
- with foreign customers requesting bids or performance bonds you can't live with
- with customers in a country that raises payment concerns
- that need access to pre-shipment financing
- are concerned by the complexities of the contract provisions, laws and risks posed by foreign customers
Working Ventures Canadian Fund
Working Ventures is the first national, labour-sponsored investment fund anywhere in the world. Sponsored by the Canadian Federation of Labour, the goal of the fund is to achieve long-term capital appreciation for shareholders. Individual Canadians in all provinces and territories receive tax credits for investing in Working Fund.
Working Ventures' mandate is to provide risk capital (between $250,000 and $10 million) to high-growth small and medium-sized Canadian businesses.
For more information, please visit the Working Ventures Canadian Fund website at www.growthworks.ca or call 1-800-268-8244.
Who can benefit
Small and medium sized businesses with:
- high-growth potential
- principles with a financial stake in their own enterprise, wanting to raise capital by giving up some equity ownership
- products or services with sustainable and defensible competitive advantages
- evidence of demand for their technology, products or services
- a national and/or global marketing niche strategy
- management with clear market orientations supported by a highly-motivated, competitive workforce
- a commitment to research and development, advanced manufacturing systems and product and process technology
The information in this article is general only; it is not intended as specific investment, financial, accounting, legal or tax advice for any individual.
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