By Jim McKinley

Special to the Financial Independence Hub

You want your business to succeed and generate a profit; however, an unexpected expense or change in the economic climate can lead to a deficit.

In fact, an estimated 70% of small businesses have outstanding debt, and businesses in Toronto, Canada, are no exception. While it may cause you to worry about your business’s future, you can proactively take steps to get your business out of debt.

Small Business Grants

Search for grants for small businesses, which provide money you won’t need to repay. The process of finding the right grant, especially one that you qualify for, may seem tedious, but you can find them.

Before beginning the grant application process, you should have created a business plan. Make sure it includes a detailed description of your business with clear objectives. You can use this plan to show you’re serious about your business. Besides applying for grants, you can use your plan to intrigue prospective investors.

As you’re searching for grants, look for ones specific to your business type. Some examples of grants for Canadians include the Amber Grant and Cartier Women’s Initiative Award.

After finding grants that you qualify for, you’ll need to complete an application that highlights the business’s best attributes and usually include your comprehensive business plan.

Small Business Loans

If you’re merely going through a hard time at the moment, consider a small business loan. In most cases, lenders only extend these loans to companies that have been in business for at least two years.

You’ll also need to have a decent credit score to qualify. Additionally, the lender will want to see your personal and business income taxes as well as income and balance statements. The lender may also ask to see your business plan.

Carefully analyze your Budget

Know your company’s finances. Review where your major spending is and determine if you could reduce or eliminate any of it. Continue Reading…