Agencies such as western Economic Diversification Canada can provide loans to technically rising ventures. The Business Develop Bank of Canada, until recently regarded as the “lending agent of last resort” for small business and entrepreneurs, has initiated a more creative lending program, perhaps unique to stimulating new venture growth. It how provides three funding vehicles:
1. Conventional term loans at high interest rates.
2. Venture loans, usually for high risk start-ups or expansions at interest rates in the order of 20 percent and more per annum, including royalty payments.
3. Venture capital, “patient” capital in shares that are retractable, redeemable or as otherwise agreed.
AS with many investing firms in Canada, the bank looks for up-front fees to cover the cost of looking at new proposals.
Agencies such as western Economic Diversification Canada can provide loans to technically rising ventures. The Business Develop Bank of Canada, until recently regarded as the “lending agent of last resort” for small business and entrepreneurs, has initiated a more creative lending program, perhaps unique to stimulating new venture growth. It how provides three funding vehicles:
1. Conventional term loans at high interest rates.
2. Venture loans, usually for high risk start-ups or expansions at interest rates in the order of 20 percent and more per annum, including royalty payments.
3. Venture capital, “patient” capital in shares that are retractable, redeemable or as otherwise agreed.
AS with many investing firms in Canada, the bank looks for up-front fees to cover the cost of looking at new proposals.
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