quebec

Quebec Finance Minister vows to push businesses to invest

quebec

In the most recent past, the economy in Quebec was being held back primarily by a weakened export industry and frail investments in business. The Finance Minister of the province indicated that he will take the necessary steps allowed by the government to try to improve the situation, if it continues. Since the previous governor of the Bank of Canada, Mr. Carney made accusations in 2012 about Corporate Canada not using the piles of money it had to improve the economy in order to create jobs, nothing seemed to have changed.

Modifications Made

Some thought that the accusation made was way out of proportion. The money is considered to still be alive, but the Canadian province is not taking full advantage of it. The National Bank revealed investment data that indicates lower profit levels for 2012 for intellectual property, machine and equipment companies and commercial construction. This appears to be a part of the bigger picture and so economy projections were modified in the month of November.

North America

North American businesses are reluctant to spend in lieu of the slow economy. Quebec, it seems may hold a stronger position in the economic climate to fix their situation since most of the businesses are owned by locals. This means that their money is not controlled by corporate decision makers in other regions.

The Projection

For 2015, it is projected by the government that Quebec will put up 1.5% in economic growth.  This is a reduction compared to past prediction of 2%. The forecast for 2016 shows a slight increase of 1.7%. The government is not pleased with the sluggish export business, even though; it is doing better than other areas. Quebec depends on export and so due to the drop in the Canadian dollar, it is hoped that Quebec will ship high volumes of paper and metal products to American buyers looking for a cheaper price. However, this is not the case – at least not yet.  

The Recession

Quebec went through an extended period of recovery from the recession of 2008-2009. The United States is still the leading market for the goods exported from Quebec. In fact, the United States takes in three quarters of everything. The recession caused major damage to the industrial framework. Many industrial plants closed their doors for good. For that reason, even though, the cycle is showing some progress, Quebec is not able to carry it due to the loss of capacity in the industrial arena.

International Exports

In 2014, Quebec’s international exports reached $75 billion in Canadian dollars. This does not include sales from foreign affiliates and service exports. A forecast has been made by export development that merchandise trade in Quebec will be increased to 10% in 2015 and 8% in the subsequent year 2016. Aerospace product shipments will lead the projection with primary exporters providing engines and production of the innovative C Series airliner.

Closing

The primary players know that they have to stay abreast of things and not be naïve about it by continuing to find supportive ways to push for new business investments. If not, a large hole will be left in the economy as businesses compete for the same assets.  

 

jumping dude

Tips for Raising Funds Quickly

Businessman jump up toward the economic growth

Businessman jump up toward the economic growth

Whether you’re starting up a new business or have a business that’s going through a rough spot, you’re bound to, at some point, find yourself in a spot where you need to raise funds for your business quickly. Fortunately, there are lots of different options and strategies you can utilize to raise money and get your business off the ground or back on track, whichever the case may be.

Selling Assets

Unfortunately, when your business is in a troubled spot or hasn’t even gotten started yet,  most standard lending options, such as banks and investors, are not going to be willing to help you out. If, however, you have some assets working for you, you may want to consider selling them off and using the money earned toward your business.

Assets can be all kinds of things, such as investments, real estate, stocks, or anything in between. Basically, if it can bring you money, it’s an asset. However, don’t just start selling off your assets. Talk with a financial adviser to determine which assets are the best choice to part with and which ones will actually help you to raise the funds you are in need of.

Help from Community Development Financial Institutions

Before you consider community development financial institutions (CDFIs) as an option, make sure you qualify. This financing option is only available to businesses that are located in distressed areas. If your business does, in fact, qualify, you can see out a CDFI that is certified by the United States Treasury Department and apply for financing.

Financing is typically given to businesses that can prove that they would help their surrounding area in some way, such as by providing jobs to the community. If you think your business might be eligible, it’s definitely worth a shot to apply for financing.

Microloans

Another option you may also wish to consider is a microloan. Microloans are offered through the title loan companies, whose goal it is to make business loans available to a wider range of entrepreneurs. The loans are not very large in nature, hence the “micro” title, but they can really help out a business that needs a little boost to get started or help to get out of trouble. The highest loan amount is $50,000, and you can apply through an intermediary in your area. The Small Business Administration lists all verified intermediaries on its website, as well as information on how to apply and tips for getting your loan request approved.

Asset-Based Loans

Finally, if you have assets but don’t like the idea of completely selling them off, you may want to consider asset-based lending. Asset-based loans are based on your business assets, like your accounts receivable, or other assets you may have. The assets serve as the collateral, and you do stand to lose them if you don’t raise the money to make your payments on time. However, they are a good way to get over a brief hump in your normal business proceedings.

 

These are just a few of many options to quickly raise funds for your business. There are others out there, so if none of these are the right fit for you, consult with your financial adviser to learn about other choices that could work for you.