Before we dive in, let’s introduce Alice Watson. Alice is an Account Manager, Financing with the Business Development Bank of Canada (BDC), where she works closely with entrepreneurs to help them understand financing options, strengthen their financial readiness, and navigate the lending process with confidence. With extensive experience supporting small and growing businesses, Alice brings a practical, straightforward approach to lending that emphasizes preparation, clarity, and long-term success.

At the Elgin Business Resource Centre (EBRC), that same philosophy applies. EBRC supports local businesses not only through advisory services and planning, but also as a lender. As a community-based organization, EBRC works closely with partners like BDC and other financial institutions and is often willing to participate as a secondary lender to help strengthen financing packages and make projects viable. Together, these partnerships create a collaborative, made-in-community approach to financing for businesses in St. Thomas and Elgin County.

Tara: One of the most common questions I hear at EBRC is, “How do I know if my business is actually ready for financing?”

Alice: That’s a great question, and an important one. Being “ready” doesn’t mean your business is perfect—it means it’s organized and prepared. You know why you need the money, your financial records are up to date, and you can clearly show how you’ll repay the loan. Strong management and a clear plan are key. In communities like St. Thomas and Elgin County, lenders also want to understand how your business fits into the area’s growth and revitalization. Tools like BDC’s business loan calculator can help business owners understand what they can realistically afford before applying.

Tara: Planning ahead really does make a difference. What are the most common reasons businesses don’t get approved for financing?

Alice: The biggest issues we see are missing or incomplete financial information and insufficient cash flow to support loan payments. Credit history—both business and personal—also matters. Another common challenge is the lack of a clear business plan. Start-ups, in particular, often struggle when they haven’t properly planned or forecasted their revenues and expenses.

Tara: That’s something we work on a lot at EBRC—helping businesses get organized before they apply. What documents should business owners have ready?

Alice: Before applying, businesses should have current financial statements, including an income statement, balance sheet, and cash flow statement, as well as recent tax returns. Lenders will also ask for details on accounts receivable and payable, personal financial information for smaller businesses, and revenue and expense forecasts. Having these documents prepared shows lenders that you’re serious and well organized.

Tara: Business plans and forecasts often feel intimidating to entrepreneurs. How important are they, really?

Alice: They’re critical. A strong business plan shows lenders what you want to do and how you plan to do it, while financial forecasts demonstrate that the idea is financially viable. In a growing market like St. Thomas, lenders want to understand not only how your business will survive, but how it will grow and adapt.

Tara: When lenders are reviewing an application, what key factors are they focusing on?

Alice: We look closely at cash flow and profitability—whether the business can meet its obligations and still generate profit. We assess the debt-to-equity ratio to understand how much risk the owner has taken on personally, and we review credit history. Market potential and management experience are also important. Together, these factors give lenders a clear picture of how stable the business is today and how likely it is to succeed in the future.

Tara: And beyond the numbers?

Alice: Lenders want to see strong leadership, a clear plan for growth, and a solid understanding of the market and competitors. Flexibility is important too—businesses that can adapt when conditions change are often more resilient. Proof of customer demand always strengthens an application.

Tara: If you could give one piece of advice to business owners applying for financing, what would it be?

Alice: Start early. Get your financial information and forecasts ready well in advance, be open and honest with lenders, and don’t be afraid to ask for help—from EBRC or your local BDC advisor. Know your numbers and be prepared to explain them clearly.

Tara: And if a business is declined?

Alice: Don’t panic. Ask the lender for feedback so you understand what needs improvement. Focus on strengthening those areas—whether that’s cash flow, planning, or credit—and explore other options like government programs or grants in the meantime. When you’re ready, apply again.

Tara: That’s such an important reminder. Lending readiness isn’t about perfection—it’s about preparation, partnerships, and putting your best case forward.

Considering financing for your business? You don’t have to navigate it alone. At the Elgin Business Resource Centre, we work one-on-one with entrepreneurs to determine the right funding strategy—helping them prepare, strengthen applications, and coordinate financing with partners like BDC to support long-term success.