Credit and no fees (almost) for new businesses
Your starting point
As a new business, it is common knowledge to say that owners will lose money to get started, while the new company gets known and builds trust and a following.
Where is the funding?
However, very little is said about alternative ways to fund your business, or rather, what alternatives are out there which allow to fund a business or run operations with as few fees as possible.
On one hand, there has been a lot of news related to crypto or investing in real estate as a way to build wealth. But what happens when you have invested every cent you own in a business and you still face paying banking fees with little to no returns?
Options, options, options!
That’s where these options come in: Koho, Tangerine, GoPeer, Wealthsimple, Canada Post Credit Card. Each option mention aims to tackle a finance or budgeting issue.
Daily accounts
For instance, Koho is your every-day card and gives you a percentage on almost every purchase you make. Moreover, it lets you set money aside, without creating a savings account and it even allows you to borrow small amounts of money with no fees, to help you build your credit. The best part is that you can do everything online and you do not have to contact customer service to get started. Finally, you also get access to Financial Coaches, if needed.
Tangerine provides phone and online support and gives you the usual banking experience, with little to no fees. It lets you save small amounts too, but you have to create a TFSA or savings account. This is more like a virtual banking experience without the overhead costs.
Loan, credit or others
GoPeer is an alternative to those who cannot obtain credits at a bank. As long as your credit score is decent and you have a good payment and employment history, you are in!
They allow to defer payments due, when needed and the rates, payment plans and amounts borrowed are monitored closely to ensure you have the best funding options at your disposal.
Wealthsimple allows you to invest and set money aside, while also having an option to have a cash account. This could be a great starting account to invest in Stocks or Crypto, while having the flexibility of TFSAs, GICs and regular spending and savings accounts.
Finally, the Canada Post Credit Card allows you to build your credit, while having a pre-paid card that you can obtain online or at your local post office.
While it is obvious that this is not the only list of options out there, it is a good starting point for those who have little knowledge to what’s out there.