Uncertain economic times such as what we’re experiencing right now pose challenges to small business owners when it comes time to find financing. An October 14, 2008 article on the Financial Post’s Small Business page called “Pessimism in the Wake of Credit Crunch” written by Eric Beauchesne discusses the findings of a Canadian Federation of Independent Businesses (CFIB) survey which noted that “credit concerns have accelerated since early September, and the number of businesses reporting problems accessing bank financing has risen 25% in early October from 18% a month earlier”.
Notes Kristine Owram from the Canadian Press in an article published on September 17/08 in the Money section of Canoe.ca called "Credit Crunch Affecting Small Cdn Companies", “They (sic small businesses) have less options, and the less options you have the more expensive your funding is going to be…It just shows how this credit crisis is pretty profound.”
Another of Eric Beauchesne’s articles appeared in the Edmonton Journal on October 21/08 called “Hit by Credit Crunch, Small Firms Remain Resilient”. He indicates that the bad news is that small companies will be hit hard by the credit crunch and will not be able to escape the Canadian economic slump; the good news though is that small companies “have held up better than the economy” and he predicts that they “will be the first to rebound once the recovery gets underway next year”. He notes that the hardest hit businesses are those that operate in or serve manufacturing but that ones in the personal service sector are still doing well.
The CFIB’s Business Barometer, which is normally published monthly, is currently tracking the small business outlook on a weekly basis. Update #4 dated October 30, 2008 indicates that the bad news in international markets has dimmed operating plans for many small businesses. Check the site weekly until November 10, 2008.
Notes Kristine Owram from the Canadian Press in an article published on September 17/08 in the Money section of Canoe.ca called "Credit Crunch Affecting Small Cdn Companies", “They (sic small businesses) have less options, and the less options you have the more expensive your funding is going to be…It just shows how this credit crisis is pretty profound.”
Another of Eric Beauchesne’s articles appeared in the Edmonton Journal on October 21/08 called “Hit by Credit Crunch, Small Firms Remain Resilient”. He indicates that the bad news is that small companies will be hit hard by the credit crunch and will not be able to escape the Canadian economic slump; the good news though is that small companies “have held up better than the economy” and he predicts that they “will be the first to rebound once the recovery gets underway next year”. He notes that the hardest hit businesses are those that operate in or serve manufacturing but that ones in the personal service sector are still doing well.
The CFIB’s Business Barometer, which is normally published monthly, is currently tracking the small business outlook on a weekly basis. Update #4 dated October 30, 2008 indicates that the bad news in international markets has dimmed operating plans for many small businesses. Check the site weekly until November 10, 2008.
As the credit squeeze continues, how and where can you get financing aside from banks and credit unions?
About.com’s Small Business Canada page offers insight and alternatives. It includes links to a variety of organizations including the Canada Small Business Financing Program and Business Development Bank of Canada (BDC) along with a slew of non-profits and organizations providing grants and loans. An informative section of the site on community investment funds is called “Where to Get a Small Business Loan When the Banks Turn You Down”.
(Angel investors might help too (see my posts dated May 6 and April 23 called “More on Angel Investors” and “Angel Investors: An Alternative Source of Financing for Small Business”.)
Check out D&B Canada for a variety of commercial credit risk management tools to help you survive the credit crunch including DNBi which allows credit checking and monitoring changes to companies’ key customers.
Check out D&B Canada for a variety of commercial credit risk management tools to help you survive the credit crunch including DNBi which allows credit checking and monitoring changes to companies’ key customers.
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