Using Grants And Loans For Product Development

By Author: Clint Jhonson
Total Articles: 282
Comment this article

Product development is one of the most essential and probably the most important aspects of any business. By developing new products and providing innovative solutions for consumers, your company can get a large share of the market which could result to increasing profit. The problem is that most Canadian small businesses do not have the needed capital to venture into product development. If your company belongs to this group, then you should act now and get Canadian government grants or loans that are specifically programmed for product development.

The key to the success of large companies and multinational corporations is product development. Because these big companies can invest billions of dollars on research and development, they can always capture market leadership. This is not the case with small Canadian business enterprises. Because of lack of sufficient finances for product innovation, the growth of a small business usually stagnates. Fortunately, Canadian government grants and small business loans specifically for product development are now available.

For example, if you have a small ...
... start up business, and you need new equipments to develop a new product, the first thing that you will probably do is to seek fresh loans from banks and commercial lenders. Unfortunately, because you only have a small company, most commercial lenders will shy away from you. So you are stuck with your old equipments and you can not produce new innovations due to lack of financing. What you can do is to look for a federal corporation that will invest in your company. Federal corporations can provide substantial Canadian government grants for budding companies through equity partnerships. This is a good option for you if you do not want to explore the possibility of getting government loans.

However, acquiring Canadian government loans for product development is also a viable option especially if you want to quickly get fresh financing. There are two general types of government loan programs that you can get. First, you can get unsecured loan which is good for start up companies. Another type is government guaranteed loans which can finance your product development efforts. A good example can be provided by small manufacturing firm Groupe Savoie Inc in New Brunswick. This company received $1 million interest free loan from the Canadian government for its modernization plan. The loan comes in two tranches and was used to finance two batches of product development and modernization. You can not get such interest free loans from commercial lenders. Only the Canadian government can provide such financing program for your modernization and product development efforts.

As a small business owner, you are probably hounded by constant financial problems. This is particularly true if your enterprise lacks the appropriate technology to provide new products and services for the consumers. It is very important therefore to take advantage of the available grants and financing options that are being provided by the Canadian government. These grants can really help your company to grow. What you should do is to look for appropriate federal and provincial agencies and departments that have grants programs and loan facilities for small business owners.

Are you looking for government sponsored loans? Visit our website today to find available loans, Canadian government grants and financing programs provided by the Canadian government for small business owners.