There are many things to look forward to when the business energy credit program comes to an end. First of all you can look forward to low rates on some of your expenditures. This is a very important part of any business, as the money that they save by curtailing the use of their own energy supplies can be used to further their operations and thereby increase the revenues. If you are a business owner, you would not want to miss out on any of these benefits that are being offered to you in this regard.
The fact that there are now more than a dozen companies offering a business credit facility in Canada means that competition among them has become much more intense. You must therefore make sure that you do not get left behind because you have signed up for one of these programs without fully understanding the terms and conditions associated with it. For example, do you know what the maximum credit limits are? Do you understand the way in which the interest rate will be calculated upon your application?
If you are still confused, here is a quick review. When the business energy credit was introduced in Canada the first thing that the banks in that country imposed was a compulsory annual percentage rate (APR) that was 18%. Since this is a foreign currency that has no exchange value, the banks could charge higher APRs. They eventually resorted to charging them at the rate of inflation plus their profit. Needless to say, this meant that they were making a heavy loss on the transactions they had made. In short, the people had to pay higher amounts to get the reduced APRs.
As if this was not bad enough, the banks and other lending institutions did not hesitate to give their clients' loans at very high interest rates. They even considered the fact that it was a necessity since the money that they were giving was needed urgently. This has led to the current situation we are facing today. With the credit crisis being felt everywhere, lenders have become averse to giving loans.
Is it any wonder that even a businessman seeks an increase in his business energy credit? He does not want to get trapped in the rat race that the others are in. He wants to win and he wants to get ahead so that his business enjoys a healthy growth spurt. He has realized that if he succeeds in doing this, the others will also be able to do so. The competition between the lenders is forcing them to come up with innovative solutions for helping businesses.
One option that many are looking at is through the business cash advances that the banks are ready to offer. This is a non-recourse loan where the banks do not need any collateral. They offer it without . . . . . . any interest and in return, the borrower would receive the cash he or she is looking for. This makes it easier for borrowers to manage their business and at the same time, it reduces the burden of the banks.
One of the many tools that are being used by many to improve the business climate is the business energy credit (BEEC). It is a tool that the banks can use to inject money in a business that is needed to grow and sustain. As such, a borrower who seeks a higher credit line would get one. If one is a business that is at an early stage, it is wise to take advantage of the existing incentives offered by the banks to improve your credit status. One can go in for refinancing, debt restructuring, or even acquiring a new capital structure to bring down the debt burden.
For one to succeed in using these tools, it is advisable to take advice from a professional. The best way to go about it is to ensure that you find out what incentives would be offered to you. This would help you choose the best one that would match your business needs. These incentives, when combined with good management practices, would help you increase the profitability of your business.