Do short-term loans affect your credit rating?

Are business loan payments tax deductible?

How small business loans in Canada affect taxes

Interest repayment

Typical business expenses you can deduct

• Home office
• Commercial rent
• Utilities
• Employee salaries
• Marketing

Typical business expenses you can't deduct

• Expensive gifts to clients
• Commuting expenses
• Entertaining clients
• Contributions to political agendas

Why work with iCapital?

You may utilize extra money to pay off your debt faster than paying your small business loan equated to a monthly installment (EMI) once a month. Of course, the lender will charge you a fee for this, but it will undoubtedly speed up your debt repayment.

Please keep in mind that this is typically only an option for secured loans. If you have an unsecured company loan, talk to your lender about the terms for making partial payments.

At Regular Intervals, Increase Your EMI Percentage

If you think you'll be able to manage your debt by reducing your spending or raising your income, talk to your lender about increasing your EMI payment by a particular percentage. The viability of this option will, once again, be determined by your lender's policies and the sort of company loan you have obtained. By increasing your EMI percentage, you’ll be able to repay the company loan faster. 

Create a Positive Working Relationship with the Lender

It is the most underrated aspect of the banking sector: borrowers frequently overlook the importance of developing a positive working relationship with the lender.

To build a positive working relationship with your lender, you must pay all EMIs on time and communicate with them regularly. It increases your trustworthiness and improves your chances of acquiring favorable loan conditions. In addition, the lender can assist you in taking advantage of various discounts that may be available from time to time.

Borrowing with Caution

Don't overborrow since it can affect your repayment schedule. If your loan is not properly handled or you fail on your payments, it can have long-term consequences.

As a result, it's critical to borrow an amount that you can readily return without jeopardizing your company's cash flow. Also, avoid unnecessarily increasing running costs during repayments since this might negatively influence your payback ability. Make the most of your resources and attempt to repay your company loan as soon as possible.

Decrease Company Spending

You can put more money toward your debt repayments by reducing any company expenditures that you can do without. Make a list of your monthly spending to see what costs might be reduced or eliminated.

Reduce inventory to increase cash flow or halt charity giving until the company's debt is paid off. The money you save in unnecessary costs can be put toward debt payments to guarantee that the money owed is paid quickly. It may surprise you how reducing small monthly expenses can add up to significant savings.

Find Ways To Increase Revenue And Income

Maximizing cash flow is a significant aspect of paying down corporate debt. Finding new ways to create money and reduce your debt will help you get out of debt faster. It’s a good idea to identify the accounts with the most significant debt. You'll require cash inflow to pay them down. 

Consider the various ways you and your firm could improve cash flow. For example, can you diversify your company's services or goods to capitalize on a market gap? Raising or reducing pricing, holding a flash sale, upselling to customers, focusing on your store's most popular goods, or renewing your marketing approach are all actions that could potentially increase company sales.

‍Get Small Business Loans with iCapital!

iCapital is one of Canada’s leading loan providers to small businesses in various industries. We offer flexible payment options and hassle-free procedures to ensure you get your money as soon as possible. Get more information about iCapital's small business loans. Contact us today and apply for a small business loan for your company with a 98% approval rate and 24/7 access to your accounts.

April is World Autism Month. It is an annual opportunity to bring awareness to and dedicated conversation about Autism Spectrum Disorder (ASD). ASD is a neurodevelopmental disorder that affects the way people interact and communicate. ASD is a spectrum disorder, which means the degree to which each person on the spectrum experiences certain challenges will be different from one another. In Canada, approximately 1 in 66 children and youth ages 5-17 have been diagnosed with autism.

At iCapital, we believe strongly in being a good corporate citizen and giving back to Canadians. We have a long history of charitable giving including sponsoring sports teams and children’s organizations. Prior to the Covid-19 pandemic, we ran an annual fundraising event in support of autism that raised over $100,000 for Integrated Services for Autism and Neurodevelopmental Disorders (ISAND). 

ISAND is a registered non-profit organization that serves children and young adults with autism and other neurodevelopmental disorders. ISAND’s integrated team of developmental pediatricians, psychologists, clinicians, and therapists work together with families to achieve the best possible outcomes for young people with autism and neurodevelopmental disorders. iCapital is a proud, long-time supporter of this amazing organization. This year, we donated $10,000 to support ISAND’s various programs.

Small business owners know it costs more to attract new customers than to keep existing ones. Research from Bain & Company puts a number on it: “A 5% increase in customer retention produces more than a 25% increase in profit.” If you’re looking to expand your business, now is the time to focus on your existing customers.

Prioritize customer service

Before you make any moves to expand, make sure your customer service is the very best it can be. Customers should look forward to interacting with your company and transactions should be stress-free.

Increase brand equity with a customer loyalty program

Loyalty programs bring customers back and that’s exactly what you want when you’re considering expanding. Strategic loyalty programs can foster goodwill with returning customers and bring in new ones—and they can help get the word out about your products or services. 

Build brand presence and engage with customers on social media

Put simply, your brand needs to be on social media. It’s one of the best ways to attract customers, build loyalty, and engage and grow your presence. Even better, social media knows no geographical boundaries so it’s an effective way to get into new markets. Treat your social media like any other part of your marketing strategy by making a plan and using the tools at your disposal to get the results you want. Make sure you post engaging and relevant content regularly. Also, test other new marketing and sales tactics, and make sure you measure what works so you can refine your strategy. 

Ask for referrals, reviews, testimonials

Nobody knows how you do business quite like your existing customers, which makes reviews and testimonials a natural (and free!) marketing tool. Make sure you’re harnessing the power of past successful relationships to bring in new leads by asking for Google Reviews of your business. These are particularly effective because they’re unbiased and can boost your brand. They can also help you identify where there’s room for improvement. 

Consider a franchise model

Franchising, where you license your business operations, is a way to gain market share with minimal capital output. A franchise is a joint venture between the franchisor (you) and the franchisee where you license your existing products, branding, and operations. The franchisee pays you a fee in exchange. It’s a way to monetize your proven idea and expand your business without taking on 100% of the burdens. 

Improve your lead generation

To fill your sales funnel, you need leads—and this goes double when you’re looking to expand. Start by building an email list and launch an email campaign. Then manage your lead nurturing using a customer relations management (CRM) system. These systems not only help you generate leads but also let you store your data, manage customer relationships, and identify sales opportunities all in one secured place. 

Participate in networking events, conferences and trade shows

Now is the time to make the most of face-to-face and hybrid networking events including conferences and trade shows. Especially for a business looking to expand, these events are critical to building brand awareness, engaging with others in your industry, nurturing leads and, ultimately, driving sales. 

Consider taking out a loan

Business loans are made for expanding businesses. They’re designed to help you take your good business model to the next level, covering expenses like advertising, real estate, maintenance, supplies, and salaries for new employees. Growth comes at a cost, and a small business loan is a far better source for that capital than your existing operating cash. 

Marketing, customer relations, lead generation, and capital: Expanding your business relies on the same strengths that starting your business did. Consider these 10 approaches to increase your chances of success.