Commercial Borrowing
Canada's banking system has been recognized as the soundest in the world for 2 years in a row (World Economic Forum 2009). The country's "Big Five" banks are operationally headquartered in Toronto. In all, there are 44 bank subsidiaries located in Toronto, providing business a variety of options when seeking out capital.
Toronto's main chartered banks offer a variety of methods for businesses of all sizes to access capital. In 2007, chartered banks provided the primary source of funding to small and medium-sized enterprises (SMEs) in Canada, receiving 68% of loan applications compared to 19% received by credit unions. (Key Small Business Financing Statistics, 2009, www.sme-fdi.gc.ca)
- In 2007, 13% of SMEs applied for new or additional financing with 87% of all applicants across Canada receiving approval.
- 45% of businesses applying for credit did so to increase working capital. Only 5% of businesses applied for a loan for R&D.
- Small Business - annual sales of less than $1 million, less than 10 employees.
- Commercial - annual sales of more than $1 million, 10 or more employees.
- Small Business - Business Line of Credit, Interest Only Term Loan, Small Business Financing.
- Scotia Capital Operating Credit, Term Loans, Asset Based Lending (commercial financing based on accounts receivable and inventory used as collateral to provide companies with working capital.
Additional Banks