Tuesday, 8th March 2022 | Small business financing Canada
What assets can I use to get a secured business loan?
You can use a variety of assets to secure a small business loan in Canada. Read our blog to understand what assets work best and how iCapital can help assist your business to grow further!
Historically, collateral has been viewed as a crucial factor in obtaining a small business loan. "A valuable asset used to secure a loan" is what the term collateral means. Traditional lenders, such as banks, often seek safe assets as collateral, such as real estate or equipment. Should you default, anything of value that the lender can readily sell to fulfill your obligation may be accepted depending on the lender.
What assets can I use to get a secured business loan?
The following are the assets you can use to get a secured loan for a small business from iCapital.
Real estate
Given that real estate value frequently stays the same or grows over time, most lenders will accept the commercial and personal property as collateral.
Equipment
Equipment loans are secured by the equipment you're purchasing. Many lenders also take equipment as security for loans that are unrelated to it.
Inventory
The merchandise you're purchasing may be used as collateral for the loan. However, before accepting your inventory as security, your lender may need an audit by an auditor.
Account receivables
Account receivables are a standard option if your company's cash flow is caught up in client bills. This sort of collateral is popular among lenders since it is simple to convert into cash.
Cash
Your business's savings account serves as collateral for a cash-secured loan. Due to the highly liquid nature of cash as collateral, your company is put in a lower-risk category. Because of the minimal risk, you may be able to get a reduced interest rate on your loan.
Personal belongings
If you're a startup with few assets, your house, vehicle, or investments might help you receive a loan. But be cautious: if you default, you risk losing your business and valued possessions.
Banks will evaluate the loan-to-value ratio of your collateral depending on the type of asset once your suggested collateral has been accepted. Individual lenders look at the loan-to-value ratio in different ways, so you'll have to ask your lender how they plan to calculate it. It's also a good idea to have the items you're using as collateral adequately assessed, so you know how much your lender will give you.
Why take a secured business loan?
A secured loan for a small business is beneficial to the lender, but it can also be helpful to borrowers. Owners with a bad credit score who want to start over, for example, will find it easier to obtain a secured business loan. In addition, low annual percentage rates, longer payback terms, and the ability to connect with the lender are all advantages that might be useful in the immediate or long term.
Secured business loan with total flexibility and better rates
A secured loan for a small business is a good alternative if you need money to meet your expenses. A secured loan is not the same as a mortgage. Instead, it's a loan that's backed by the property you own. Secured loans from iCaptal start at 9.99 percent interest and offer longer terms than a second mortgage or another sort of loan.
With an iCapital secured loan, you receive the money you need and the freedom to utilize it any way you choose. It is the most effective way to free up your cash flow, which is the lifeblood of your company.
Why go with iCapital?
The advantages of taking out a small business secured loan from a company like iCapital are plenty. Not only can you borrow bigger sums of money with ease but you may also do it with a poor credit history. A secured loan for a small business is, without a doubt, the most effective way to give your business the boost it needs. Get small business loan offers customized for you today by contacting iCapital at 1.877.251.7171. Appy for a secured loan in 3 simple steps: request quote, approvals in 24 hours, automated repayments.
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Marketing ideas for your business in the new year
As the end of the year approaches, it’s time to revisit your marketing strategy to meet current consumer expectations. Forecasting trends is tricky, but what’s clear is that in 2023, customers value privacy, inclusivity, transparency, and overall authenticity, and it’s your job to show them how your business practices meet these ideals. Read on for six steps you take right now to market your business in 2023.
Understand your changing audience
The first thing you need to do is revisit your market. Review your sales and marketing data to make sure you have a realistic grasp on the size, demographics, and character of your target market. Pay close attention to any changes in your ideal customer and use this updated intel to seek out new opportunities. For example, if your business has grown or taken a new direction in recent years, it might be attracting a new audience. Make sure you’re communicating with the most appropriate market segment.
Update your website
Your website is one of your most valuable marketing assets so it’s crucial that it be in good shape. Review your site to make sure all the content is correct and up-to-date. Check to make sure that it loads quickly and displays correctly across desktop, tablet, and mobile platforms. You probably look at your site regularly so consider getting someone with “fresh eyes” to take a look. Ensure that your site works intuitively and offers a seamless customer experience. A site that’s pleasant to use will help you convert new visitors and retain returning ones.
Maximize the potential of social media
With more than 4.7 billion people using social media, your business cannot afford to ignore it. If you’re just starting out on social platforms, now is the time to claim your presence. Set up accounts for your business on top platforms like Instagram, Facebook, and TikTok. Investigate which sites your ideal customers might be using and ensure you’re on them too. Post relevant content, regularly, and make sure that you keep your profiles fresh and current. Try running contests or promotions to boost engagement, and take advantage of the built-in shopping capabilities available on many platforms. You can communicate a lot about your brand values by aligning yourself with other local small businesses through collaborations or sponsorships.
Leverage video content and live streaming
Video content has been a rising trend for the past several years, and is well-suited to businesses who want to increase awareness, improve lead generation and sales, and reduce support calls. Consider how video content might work for your business, keeping in mind that consumers appreciate being entertained. Live streaming is popular and an effective way to connect with your audience in real time. Engage your audience with quality storytelling. Inform them with a clear and concise script. Be creative.
Get interactive with your audience
When was the last time you did an online quiz or game? How about worked with an online calculator or map? Interactive content is engaging, which is why audiences–and marketers–love it. It’s low-cost and can help you increase brand loyalty, generate leads, and drive sales. Think about ways your business can use interactive content to grab your customers’ attention.
Respect consumer privacy
More than ever, consumers are concerned about privacy. Demonstrate respect for your customers’ privacy by compliance with standards like GDPR, by properly acquiring and using user data, and by continually informing your customers of exactly how you’re handling their information.
If you want to stay ahead of your competitors in 2023, now is the time to fine-tune your marketing efforts to communicate your business’ authentic brand and values. Take an inclusive, transparent, privacy-first approach, to reach your target audience.
Marketing