Small Business Banking
Need help? Small Business Banking
Steps to start up
Working for yourself can bring many rewards, such as freedom, flexibility and the chance to follow your dreams. But it can also bring new challenges. The good news? With some smart business planning, you can put the odds of success in your favour. We can help.
What is the best way to start your business?
Pros
- Freedom of choice on how you organize and structure the business
- Flexibility to scale the business to customer demand and opportunities
- Less expensive to set up, as you are not paying a premium for assets
Cons
- Takes longer to establish supplier and customer relationships and ramp up the business
- Learning curve for owners/employees as new processes are created and refined
- Cash flows and profitability are less certain
Pros
- Easier to ramp up the business as there is often an existing product/service and customer base
- Easier to predict cash flows and profitability
- Purchasing used assets/equipment is usually less expensive
- Existing business owner may be willing to help transition the business to you and provide vendor financing
Cons
- Challenging to identify existing businesses that are up for sale
- Challenging to value intangible business assets such as customer lists, goodwill and patents
- Legal considerations can be complex and will require representation
Pros
- Franchise systems provide a well-researched and tested business concept supported by training, site selection, systems, and business set up
- Many also provide ongoing brand/marketing/advertising support
- Many franchise systems continuously innovate to help you offer new products or services
Cons
- Less freedom in setting up and structuring the business
- More expensive to purchase as you are paying for the brand, concept and expertise
- More expensive to operate as most franchise systems charge ongoing royalties and other fees
- Franchise Agreements may be cancelled for non-compliance with the rules
Expand Set yourself up for success
Entrepreneurship is a dream shared by many Canadians. If you’re just starting out, these business principles can put you on the path to success.
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Write a business plan. Developing a plan will organize your thoughts and provides direction. Our free Online Business Planner is a good place to start.
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Get advice. A TD Account Manager, Small Business will work with you to help find strategies to improve your bottom line. Connect with a Account Manager, Small Business
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Separate your business and personal finances. Opening a separate business chequing account and getting a business credit facility will help ensure you don’t mix up your personal and business finances. It also helps demonstrate to the Canada Revenue Agency that income and expenses are business related. See our Business Account options
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Keep good books. Tracking income and expenses, saving receipts, and paying bills and invoices on time will give your business a professional edge.
Advice & Resources
Cash flow Best Practices
The right cash flow strategies can go a long way to helping your business succeed.
Increase your cash flow
Invoice immediately after you deliver goods or services
Offer a small discount to customers who pay their bills early; charge a penalty to late-payers
Monitor your receivables on a regular basis. Establish a credit policy for your customers and be sure to follow-up with late-payers
Use your business credit card to pay suppliers and earn rewards while taking advantage of the payment grace period
Ask suppliers for credit terms – this can help reduce your cash outflows until you collect payments from your customers
Accept payment cards to receive next-business-day proceeds for sales.
Get business overdraft protection or a business line of credit to cover short-term needs and emergencies, and to help better manage your cash flow
Put your excess cash to use and invest for your business
Finance (equipment, vehicles) instead of buying to free up cash
TD Merchant Solutions offers straightforward advice and payment solutions to keep pace with your growing business. Proceeds from your payment transactions are often available the next business day.
Ceridian Canada Ltd., in association with TD, offers a variety of professional payroll products designed to save you time and money.
Advice & Resources
Planning for growth
While many business owners look forward to growth, rapid growth can present challenges. For example:
Shortage of capital to fuel expansion (working capital or longer-term capital)
The need for new processes and systems to meet demand
Onboarding new employees
Strains on management resources
Outgrowing your current premises
Increased competition (nothing attracts competition like success!)
TD Account Managers, Small Business can provide you with the right solutions to manage your business growth, based on your specific needs. Here are some of the ways we can help:
A TD Business Credit Card to easily manage your business expenses
Business Lines of Credit to boost your working capital
Business Loans to fund long-term expansion
Business Mortgage to purchase new premises or expand your existing premises
Employer Services (such as Group Retirement Savings Plans) to help you retain top-performing employees
Payroll Services to help focus on your core business
Foreign Currency Services to help you enter new markets
TD Merchant Solutions to accept payments more efficiently
Visit our Small Business Resource Centre under “Other programs and useful links” for more information.
Advice & Resources
Credit solutions to help meet your needs
Having access to sufficient capital and credit is key to small business success. Whether you want to manage your cash flow, purchase new equipment or acquire new premises, we have the credit solution that can help meet your needs.
For unexpected shortfalls
Business Overdraft Protection ensures that you always have funds available through your Business Chequing Account (up to your available credit limit) to meet unexpected cash flow shortages and emergencies.
Access funds when you need them
A Business Line of Credit can be a valuable tool to help finance your day-to-day operating costs, manage your cash flow and grow your business. Learn more about this flexible financing tool.
A convenient way to manage your expenses
A Business Credit Card is a convenient way to manage your day-to-day business expenses. You can also earn travel rewards with the TD Aeroplan® Visa Business Card or TD Business Travel Visa Card, gain access to valuable insurance and receive detailed management reports.
A flexible financing option
A Business Loan provides an excellent way to finance equipment purchases, make improvements to business assets and expand your operations.
For purchasing or expanding commercial property
A Business Mortgage can be used to purchase a new property, expand existing premises and more.
Start, purchase or grow your business
With a Canada Small Business Financing Loan (CSBFL), TD and the Government of Canada work together to help you finance a new business or expand and improve the fixed assets of your existing business.
Advice & Resources
Start planning for succession today
As a business owner, you’ve worked hard to build your business and may now be looking forward to the day when you can step away and enjoy your retirement. To maximize the value of your business when it comes time to sell or exit, and to ensure a smooth transition, you’ll need to develop a business succession plan. The sooner you can start the process, the better position you’ll be in when it’s time to step away or retire.
Succession planning checklist
Decide when you want to retire. Engage your family in the discussion.
Decide who will take over your business. Will it be family members, business partners or a third-party?
If you want to keep the business in the family, determine which family members are interested and capable of running the business.
Determine the most tax-effective way to sell your business, in consultation with your lawyer and tax Account Manager .
If you are not the sole owner, what arrangements need to be made with partners or shareholders?
Do you have a business contingency plan in place? If something were to happen to you before you transfer ownership, who would assume responsibilities for the business?
TD offers many ways to invest your personal financial assets to help get the most out of your retirement.
Our integrated, comprehensive and customized wealth solutions give you the confidence to enjoy the freedom you’ve earned. See how we can help.
Advice & Resources
Knowledgeable business advice
We’ll take the time to understand your business and provide the advice and solutions that are right for you.
Find a Account Manager, Small Business
Small Business Resource Centre
Access our library of content and tools to help you manage and grow your business.
Get resources
Get Help Online
Post a question and our team at TD Helps, along with our community, will respond. You ask. We answer.
Why choose TD?
We make banking more comfortable
Open longer and later
We’re open later and longer – even on Sundays.1 Because running a business is not a 9-5 job.
Convenient business banking
anytime, anywhere, 24/7
- Asset purchases from an existing business may be subject to the Bulk Sales Act in your province (in other words, you are not just purchasing assets, you may also be liable for the existing business' debts).
- A share purchase of an existing business is an alternative to an asset purchase. There are a number of complex legal and tax considerations that should be explored with your legal counsel and accountant.
- Purchase details and any vendor financing arrangements should be documented in a valid contract or agreement. Such purchases will require legal representation for both buyer and seller.
Ways To Apply
Call us 24/7 at 1-866-222-3456 OR
TTY 1-855-646-8820
7:00 a.m.-12 a.m. EST, 7 days a week