FINANCING YOUR BUSINESS/BORROWING FROM A BANK
Many businessmen when arriving in Canada decide to borrow money from a bank to finance a new business. Some also decide to borrow money to purchase a home.
When choosing your bank you should be aware that not all banks treat non-Canadians the same as Canadians. Some banks have concerns over the lack of history of the non-Canadian in Canada. Other banks have concerns over the non-Canadians lack of history with that bank in Canada.
When borrowing money from a bank there will generally be a requirement you provide security to the bank. Some of the common types of security are: mortgage on real estate; mortgage on cash; general security agreement on all the assets of the business including accounts receivables; and assignment of accounts receivables.
In addition many banks will also request a personal guarantee from the principal of the business or company.
The types of security and personal guarantees taken by a bank in Canada are likely different from security taken by the banks in your home country. Each province has different rules concerning the filing and procedures of security. The same security given by the same bank will have different filing requirements in different provinces. You should have a lawyer examine and advise you as to what it is you are agreeing to.
Brian Edward Tadayoshi Tsuji
Canadian Immigration Lawyer
2800 Park Place
666 Burrard Street
Vancouver, British Columbia, Canada, V6C 2Z7
Tel:(604) 643-6496 Fax:(604) 605-3596