Small Business Loans

The developmental loan information package includes the loan application form. It is important that this application form be completed in full detail to ensure an efficient processing time. Failure to complete the application in full detail will lead to delays in the processing procedure.

While the application is a priority requirement in evaluating your loan request, in order to properly qualify your loan application we do require a business plan. Through our subsidiary, Pinnacle Business Services Ltd., our business consultants can provide assistance in business planning, business valuation, accounting and other business services for a reasonable fee.

For funding requests under $50,000 we can provide you with a short-form business plan that you can complete yourself and return with your application or you can use it as a guide to build your own business plan. All loan requests over $50,000 will require an in-depth business plan unless you are an existing business and wish to expand. If this is the case, we require at least the last three years of financial statements to support the application. Should the financial statements not indicate an adequate cash flow to service the loan request, you will be required to provide a business plan outlining how you will be able to repay the loan.

For your information, we have enclosed a section on some of the more frequently asked questions below.

To The Entrepreneur

THE FIRST STEP

In any journey, the first step is to be clear about where you are going. The same is true in business.

Before proceeding to request support for Apeetogosan (Métis) Development Inc., you should be well prepared and should have considered some of the following factors about your proposed project.

• CAN YOU OUTLINE YOUR BUSINESS PLAN/IDEA IN ONE PAGE?
• CAN YOU IDENTIFY THE COSTS INVOLVED IN YOUR PROJECT?
• DO YOU HAVE EXPERIENCE WITH THE KIND OF PROJECT YOU ARE PROPOSING?
• SHOULD YOU GAIN EXPERIENCE BY WORKING IN THE LINE OF BUSINESS BEFORE YOU START YOUR OWN VENTURE?
• WHO IS YOUR COMPETITION? WHY ARE CUSTOMERS GOING TO BUY FROM YOU AND NOT FROM YOUR COMPETITOR?
• HAVE YOU CONDUCTED MARKET RESEARCH? HOW LARGE IS THE MARKET?
• WHO ARE YOUR CUSTOMERS?
• WHAT RESOURCES CAN YOU PERSONALLY INVEST IN THE PROJECT?
• DO YOU HAVE FINANCIAL MANAGEMENT EXPERIENCE?
• IS YOUR FINANCING SUFFICIENT TO UNDERTAKE YOUR NEW BUSINESS ACTIVITY?
• HAVE YOU IDENTIFIED THE NUMBER AND THE REQUIRED SKILL OF PEOPLE YOU WILL NEED AS EMPLOYEES?
• CAN YOU MANAGE AND MOTIVATE PEOPLE EFFECTIVELY?
• DO YOU FEEL YOU HAVE THE COMMITMENT NECESSARY TO WORK LONG HOURS TO SEE YOUR BUSINESS SUCCEED?
• WHAT ARE YOUR STRENGTHS AND WEAKNESSES AS A BUSINESS PERSON?

Frequently Asked Questions

1. Is an Application Fee charged when I submit my loan application?

No.

2. How long does it take after the loan is approved before the money is actually advanced?

This is dependent on several factors including:

• Apeetogosan’s current work in progress. Files are generally treated on a "first in, first out" basis.
• The timing involved in providing additional information as requested by Apeetogosan. For example, a business plan.
• The complexity and size of the deal.
• The length of time it takes to analyze the information provided, prepare a recommendation and register the security for the loan.

3. The application says all I need is 10% of my own equity. Is this true for all cases?

10% is the minimum equity required. Apeetogosan, like any other lender, is concerned about controlling its level of risk. The age and type of security pledged to secure the loan often dictates the minimum level of equity required from the applicant. In addition, the level of risk due to the nature of the business also influences the minimum equity required. The Loan will still require the necessary security as per policy.

4. What are Apeetogosan’s interest rates compared to conventional banks?

Apeetogosan’s interest rates are comparable to rates charged by most of Canada’s major chartered banks. Our benchmark rates are based on rates established by the Royal Bank of Canada and adjusted according to risk.

5. Does Apeetogosan charge a loan fee?

Yes. The loan fee is charged to cover the costs of conducting business. These costs include fees for reviewing your loan application, fees for preparing your loan application, administration fees for preparing and registering the security documents and other "out of pocket" costs incurred by Apeetogosan. The loan fee does not cover any legal costs that may arise (ex. Notarization of a Personal Guarantee). Generally, the loan fee is a minimum of 1% of the total loan applied for. This fee may be adjusted depending on the level of risk and /or administration costs.

6. What sort of criteria does Apeetogosan use when reviewing loan applications?

• The credit history of the applicant.
• The viability of your business proposal. That is, does it make sense? Is there a solid, verifiable market for your product or service?
• Management capabilities, experience and background of the applicant.
• Cash flow prospects for the business to ensure you can comfortably repay the loan.
• The competitive position of your business in the industry it is involved in.
• The level of collateral security provided for the loan.
• Your business’s sensitivity to external factors such as the economy, dependence on certain industries, etc. If so, are contingency plans available? That is, are there alternate sources of repayment?

 7. What are the more common reasons why some loan applications are declined?

• Not enough owner equity in the business
• The business appears too risky
• The prospects of repayment are poor
• There is not enough security
• The applications have inadequate management skills
• The product or market is unproved
• The applicant has a poor credit history