Small Business Banking
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?
- 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
- 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
- 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
- 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
- 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
- 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
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.
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.
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
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
Keep good books. Tracking income and expenses, saving receipts, and paying bills and invoices on time will give your business a professional edge.
Opening a business chequing account is a key step when starting out. It will help keep your business and personal expenses separate, and get your business off to a good start for tax purposes. It will also help project credibility and professionalism to customers and suppliers of your new business.
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
Interac e-Transfer® is convenient way to send, request and receive money, and can be an alternative to cash and cheques.
Accept payment cards to receive next-business-day proceeds for sales.
Put your excess cash to use and invest for your business
Finance (equipment, vehicles) instead of buying to free up cash
Ceridian Canada Ltd., in association with TD, offers a variety of professional payroll products designed to save you time and money.
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:
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
Access funds when you need them
A convenient way to manage your expenses
A flexible financing option
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.
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?
What’s your borrowing need?
Tell us the amount you’d like to borrow and we’ll present you the borrowing solution tailored to your needs.
Why choose TD?
We make banking more comfortable
1The Cash Offer (“Offer”) is available to small business banking customers who open a new Business Chequing Account with a TD Every Day A, B or C, or Unlimited Business Plan (“New Business Chequing Account”) between May 24, 2018 and September 3, 2018 (“Offer Period”) and do EITHER (i) two of the following during the Offer Period to qualify for the $300 offer; OR (ii) one of the following during the Offer Period to qualify for the $100 offer: 1) Apply for either a Business Line of Credit ("BLOC") with a minimum credit limit of $50,000 or a Business Loan ("BLON") with a minimum approved amount of $50,000 and a minimum one year term and have either approved and made available by December 9, 2018; 2) Apply for a new TD Merchant Solutions account with a three-year contract term and if approved, process at least one credit or debit card payment transaction with your TD Merchant Solutions payment solution by December 9, 2018; 3) Apply for either a new TD Aeroplan Visa Business Credit Card or TD Business Travel Visa Credit Card ("New Business Credit Card"), and if you are approved, make one or more purchases using your New Business Credit Card for a total of $5,000 by December 9, 2018. Total of $5,000 in purchases can be made on the New Business Card or any related Additional Cards issued to your Business during the Offer Period. The New Business Credit Card and any Additional Cards must be open and in good standing at the time the Offer is fulfilled; 4) Apply for TD Remote Deposit Capture ("RDC") and if you are approved, have RDC made available by December 9, 2018.
You are not eligible for this Offer if (i) on the date you open a Business Chequing Account, you have an existing Business Chequing Account, or (ii) you had a Business Chequing Account that was closed on or after May 23, 2018. You are not eligible for the Offer in relation to applying for a New Business Credit Card if you (a) already have a TD Business Credit Card Account open or (b) if you opened and then closed any TD Business Credit Card Account on or after December 1, 2017. You are not eligible for this Offer in relation to opening a BLOC or getting a BLON if you are replacing an existing BLOC or BLON with a new BLOC or BLON, unless (i) the credit limit on your new BLOC is $50,000 or more above the credit limit on the BLOC you are replacing or above the outstanding principal amount of the BLON you are replacing as of May 23, 2018 or (ii) the funded amount of your new BLON is $50,000 or more above the credit limit of the BLOC you are replacing or above the outstanding principal amount of the BLON you are replacing as of May 23, 2018. If one of your choices is applying for a new TD Merchant Solutions account and processing at least one payment transaction (as described in item 2 above) and you improperly terminate your contract with TD Merchant Solutions before the three-year term is completed, then in addition to any applicable early termination fee or any other rights or remedies TD Merchant Solutions may have, you may also be liable to repay the amount of the Offer. For this Offer, no waiver will be permitted of either (i) the monthly fee on the service plan for a New Business Chequing Account; or (ii) the monthly fee on a BLOC. The first $100 will be deposited to your New Business Chequing Account within 3-4 weeks of meeting the first condition. The remaining $200, if applicable, will be deposited to your New Business Chequing Account 3-4 weeks after the second condition has been met.
TD Canada Trust reserves the right to change, cancel, extend or withdraw this Offer, or any portion of it, at any time without notice. A Customer can receive only one deposit in connection with this Offer. This Offer cannot be combined with any other offer. Subject to complying with TD Canada Trust lending policies and eligibility criteria, where applicable. All trade-marks are the property of their respective owners. The TD logo and other trade-marks are the property of The Toronto-Dominion Bank.