Debt Financing with ValueMags
ValueMags is a marketing agency for magazine publishers that is highly considering distributing to their neighboring country, Canada. Canada has many opportunities to offer including the diversity and patriotism of their people and in recent decades, immigrants that now call Canada their home and native land. ValueMags has a lot to consider however. They will likely have to completely rebrand themselves as well as consider options if their Canadian distribution fails like bail out options or debt financing.
Debt financing provides the extra money business may need to grow. Debt comes in many forms, like operating lines, term loans, mortgages, credit and leasing. Debt is okay as long as it is the right form of it says ValueMags. The company’s executives understand that having debt is normal as long as they can eventually pay it off with a sustainable growth. The benefits that prevail with debt financing include that typically when debt investments are acquired, the current stakeholders do not require to give up any control or share any of the business profits. As well as, the interest on the loan is tax deductible therefore creating a tax shield in sorts. Similarly, to equity financing, you must be prepared to consult with professional advisors. In general, debt financing may be difficult at times to find for start-up businesses.
In the matter of dealing with direct government financing, there is still the topic of Canadian Government Grants, contributions and financial assistance. On the Canada Business webpage there are endless possibilities for grants, so long as you choose the appropriate grant subject and that the guidelines respect your companies economic activity and the further rules and regulations that must be followed. The programs listed on the webpage apply directly to a given province or territory. Examples of government grants include, Career Focus which engages young individuals in the work force in order to provide them with useful work experience. First Patent program, is a grant available to those who apply and are accepted to protect intellectual property assets with patents or industrial designs. Grants to commercialize your developed technology abroad, and network with international partners. This is an important part of financing for ValueMags because they are currently developing a mobility application and reader program. It is important to do adequate research on the grant you are applying to in order to ensure that your company or cooperation fits the description. For more information, contact ValueMags or visit their new blog!