(September 22, 1999) – Of the approximately one million small businesses in Canada, it is estimated half need financing. And it is this group that usually has the most trouble getting funds, turning to credit cards, personal loans and personal savings to finance their companies.
Canada Trust would like to change that. Today the Trust company announced it has surpassed the $1 billion mark in providing approved credit for small business. It also plans to put an additional $300 million into the market before year-end by employing some curiously un-bank-like tactics.
“We’re meeting the needs of a rapidly growing market by taking the initiative and contacting small business owners,” said Bill Toon, vice-president, Small Business, Canada Trust. “We’re going to them rather than waiting for them to come to us.”
This has proved valuable because small business owners are more use the same bank for other business. Lisa-Beth Glassman and Nancy Brownsell, partners of The Big Goose Gourmet, responded to a loan offer and used the funds to add air conditioning to their open kitchen and retail store. “When we went to take advantage of the loan offer, we found the approval process to be easy and hassle-free,” said Glassman. The partners have since taken out an additional loan with Canada Trust.
Customers wanting to borrow up to $50,000 are not required to provide business financial statements. For small business customers, Canada Trust can usually approve, in person or by phone, a loan or line of credit of up to $50,000 within one hour.
“We make credit decisions about a small business based on the personal credit worthiness of the owner,” said Toon. “We’re confident that if a business operator can comfortably afford to carry a $50,000 loan, his or her business success is the reason.”
-IE Staff
For more information see: