Friday, 28th January 2022 | Management
Here's how Ontario’s “right to disconnect” law will affect your business
Ontario is introducing a bill that will give employees legal right to “disconnect” from work activities or communications before or after work hours. Here's what that means for the province’s small and medium-sized businesses.
Many Canadians had their first work-from-home experience during the COVID-19 pandemic, discovering what most seasoned home workers already know: setting boundaries between work and home can be a challenge. In an effort to offer a framework to employers and employees, the Canadian government has begun a review of labour practices regarding this matter. In December, the province of Ontario received assent on the so-called “right to disconnect” law, which will affect employers with at least 25 staff. Read on for more about what this new legislation will mean for the province’s small and medium-sized businesses.
What is Ontario’s “right to disconnect” law?
Simply put, Bill 27, the Working for Workers Act 2021, says that employees have the legal right to “disconnect” from work activities or communications before or after work hours. According to the legislation, “disconnecting” is defined as “not engaging in work-related communications, including emails, telephone calls, video calls or the sending or reviewing of other messages, so as to be free from the performance of work.”
The provision received Royal Assent in December 2021 and will take effect on June 2, 2022, giving targeted employers—those with at least 25 people on staff—six months to develop “right to disconnect” policies.
Is there a precedent for policies like this one?
There is similar legislation in Portugal, France, and Spain.
Are other provinces following suit?
The province of Quebec is also developing “right to disconnect” legislation, with an eye on being even more strict by including provisions for fines for non-compliant employers. The federal government is considering provisions aimed at federal employees.
What does this law mean for small businesses in Ontario?
If you have 25 employees or more, you have six months to develop your “right to disconnect” policies.
Bill 27 stops short of specifying what an employer’s “right to disconnect” policy should say, which leaves ample leeway to tailor your policy to your specific workplace. Until more details are in place, employers should focus on preparing a document that seeks to codify a good work-life balance while keeping operational concerns in mind.
At this point, employers are required to date the policy (and any changes) and provide a copy of the new or updated policy to each employee within 30 days of preparation.
If you’re a small business employing fewer than 25 staffers, this bill does not apply to you. However, at a time when staff shortages are commonplace, employees are seeking companies that encourage a healthy work-life balance regardless of their size.
How can SMBs implement their own “right to disconnect” policy and what should it include?
When thinking about your company’s “right to disconnect” policy, you’ll want to take the following into account:
- What is your company’s definition of disconnecting from work? Get specific about what it includes. For example, does it include emails, texts, phone calls, and video conference calls?
- Who does the policy apply to?
- Who is responsible for monitoring and enforcing the policy?
- What is the process in the event of a complaint or violation of the policy? How will the policy be enforced?
Plan for employee training to make sure everyone understands the policy and how it works. Trainers should provide employees with specifics such as the number of hours they are expected to work, who to approach with issues, and how to move towards a resolution.
For Ontario’s affected small to medium-sized businesses, the best course of action is to begin planning now.
Is a business loan taxable income?
Are business loan payments tax deductible?
How small business loans in Canada affect taxes
Typical business expenses you can deduct
- Home office
- Commercial rent
- Employee salaries
Typical business expenses you can't deduct
- Expensive gifts to clients
- Commuting expenses
- Entertaining clients
- Contributions to political agendas
Why work with iCapital?
Small business financing Canada ,Management
Best strategies to pay off your small business loan
Best Strategies To Pay Off Your Small Business Loans
Knowing that your company's debt is mounting can be a powerful drive to take action, but it can also feel intimidating and overwhelming. Developing a debt reduction strategy can assist business owners in regaining control of the situation and paying off debt as quickly as possible.
The following company debt management techniques can teach you how to pay off debt quickly.
Pay in Installments
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.
Small business financing Canada ,Accounting
Do short-term loans affect your credit rating?
What is a Credit Rating?
A credit rating determines how creditworthy individuals, groups, enterprises, non-profit organizations, governments, and even nations are. Special credit rating agencies assess borrowers' financial risk to decide whether or not they will be able to repay short-term loans on time.
A strong credit rating boosts trustworthiness and demonstrates a record of repaying debts on time. In addition, it assists banks and investors in determining whether or not to approve loan applications at a given interest rate.
Why does a Credit Score matter?
Before discussing business financing, let’s talk about credit ratings and why they matter. Most lenders are partial to issuing a company loan based on your credit score. Why? Your credit score and personal financial history will provide information and an accurate picture of your financial responsibility.
Lenders will use your credit score to determine how trustworthy you will be as a borrower.
This is especially true if you are a young entrepreneur. If you have no company credit, a lender can look at your previous ability to pay off past loans to determine your creditworthiness.
How does a credit check affect a Credit Score?
While you may have been aware that personal credit ratings influence your ability to obtain company funding, did you realize that qualifying for a business loan might negatively impact your credit score? This "blow" will affect your ability to obtain the best rates.
The type of credit score performed by the lender determines the influence on your credit score:
- Some credit inquiries from lenders consider variables other than your credit score with a no credit check. This implies that your credit score will not suffer.
- During the pre-approval procedure, a soft credit inquiry will be performed, which will not affect your credit score.
- A hard credit inquiry is the ultimate sort of credit inquiry and occurs just before a company loan is approved. Each inquiry will lower your credit score by 1 to 5 points.
Situations when business loans affect Credit
There are various types of business loans, each with its own impact on personal credit. For example, most business loans will harm your credit if you guarantee a company account.
It is a frequent circumstance for solo owners and couples. The lender has the authority to recover payments from you if the firm defaults. In addition, the lender will record defaulted business debts on your credit reports.
Another situation where business loans may impact your credit score is when you utilize personal borrowing to support your company. For example, if you utilize personal loans to finance your business, such as home equity loans, the payments will appear on your credit reports.
A company line of credit is no different. If you guarantee the line of credit, it may impact your credit. Your credit ratings may be affected in either a good or bad way. If your company has difficulty repaying debt, it will have a negative impact on your credit score.
How Can You Improve Credit Score?
Being authorized for a fair business loan with little to no credit is certainly not impossible. However, if you want a loan with a longer payback period, and cheaper fees and interest rates, raising your credit score can help you get approved.
- Find out what's causing your credit score to suffer
- Create a credit history
- Raise your credit score
How Does iCapital Work?
iCapital offers hassle-free loans to small businesses in as quickly as 24 hours. With minimal paperwork and hold-ups, you can have the money transferred to your account within 48 hours.
iCapital is a one-of-a-kind firm in Canada. Are you prepared to begin the process of obtaining short-term loans in Canada? To get started, give the iCapital team a call today at 1 877-251-7171!
Small business financing Canada
April is World Autism Month
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.