Some businesses might encounter difficulties repaying the CEBA loan by January 18, 2024, in order to secure the $20,000 forgiveness. If you can’t do that, what are your options?
- Approach your bank and apply for a personal or business revolving line of credit to replace CEBA.
- Check out financing options offered by BDC (Business Development Bank of Canada) – they specialize in helping entrepreneurs.
- Though not favourable, you can allow the CEBA loan to be converted into a 2-year term loan (5% interest per year) – though you will forego the $20,000 forgiveness. These days, 5% annual interest rate for an unsecured loan is generally considered low.
- You might have been approached by online lenders to refinance your CEBA. These lenders typically give you a high interest rate and have a long list of fees – not to mention that some of them are not legitimate – avoid them.
- Any other thoughts? We’d love to hear your thoughts – you can post your comments.
Before taking a loan, the fundamental question revolves around whether you comprehend the underlying cause of the cashflow challenge and what actions to take. Your historical financial data serves as a valuable resource that can illuminate your business’s financial well-being. Are you capable of harnessing this data to make informed decisions?
Borrowing additional funds to bolster operational cash flow is sensible only if the business is profitable or projected to become profitable. Avoiding borrowing money without a clear repayment strategy is crucial.
We can work with you to assess the underlying cause of your cashflow challenges. Schedule a call with us to initiate the process.
About Reconcile: We ensure that your financial position is reconciled, that government accounts are in order, and, most importantly, that you are aware of your financial standing. With our assistance, you can determine the best course of action moving forward. Schedule a call with us to initiate the process!