Starting a business as a newcomer to Canada can be exciting but also challenging—especially when it comes to financing. Here are some practical tips to help you get started:
1. Understand the Financing Options
Newcomers can access several funding sources in Canada:
Government Programs
- BDC (Business Development Bank of Canada) – Offers loans and advisory services for newcomers and entrepreneurs.
- Grants and subsidies – Some provinces and municipalities provide grants to startups (e.g., Ontario Starter Company Plus, Alberta Innovates).
- Canada Small Business Financing Program (CSBFP) – Helps secure loans up to $1 million through banks and credit unions.
Banks and Credit Unions
- RBC, Scotiabank, TD, BMO, and CIBC have special newcomer business banking programs.
- Credit unions (like Desjardins, Vancity) may offer flexible lending criteria.
Alternative Financing
- Microloans from community organizations (e.g., ACCESS Community Capital Fund, Futurpreneur Canada).
- Crowdfunding (Kickstarter, GoFundMe, Indiegogo).
- Private investors/angel networks.
2. Build Your Credit History
- Open a bank account as soon as you arrive.
- Get a secured credit card and use it responsibly.
- Pay bills (phone, utilities) on time—these strengthen your credit score, which lenders consider.
3. Prepare a Strong Business Plan
- A clear, well-written plan helps you convince lenders and investors. Include:
- Executive summary
- Market research
- Business model
- Sales/marketing strategy
- Financial forecasts (cash flow, profit/loss)
- Risk management
📌 Tip: Organizations like BDC, Futurpreneur, and immigrant settlement agencies offer free workshops and templates for business plans.
4. Start Small and Scale
- Consider starting as a sole proprietorship before incorporating.
- Use personal savings or family loans to cover initial costs.
- Test your product/service with a small market before applying for larger loans.
5. Use Settlement & Business Support Services
- Futurpreneur Canada – Financing + mentorship for entrepreneurs aged 18–39.
- Immigrant-serving agencies – Many run newcomer entrepreneur programs (e.g., COSTI, YMCA, ACCES Employment).
- Chambers of Commerce & Business Incubators – Great for networking, mentorship, and credibility.
6. Be Aware of Cultural and Legal Differences
- Business laws vary by province (licensing, taxes, permits).
- Register your business name with the province/territory.
- Understand GST/HST and payroll obligations if you hire staff.
✅ Key Takeaway: Start by building credit, preparing a strong business plan, and using government and newcomer-friendly financing programs. Combine traditional bank loans with alternative funding sources like community loans and grants.