Frequently Asked Questions
We try to cover the most frequently asked questions here. If you have a question please don’t hesitate to contact us! We’d love to hear from you.
1. Is an Application Fee charged when I submit my loan application?
2. How long does it take for a loan application to be approved?
This is dependent on several factors including:
- Apeetogosan’s current work in progress. Files are generally treated on a “first in, first out” basis. The timing involved in providing additional information as requested by Apeetogosan. For example, a business plan. The complexity and size of the deal.
- The length of time it takes to analyze the information provided, prepare a recommendation and register the security for the loan.
3. The application says all I need is 10% of my own equity. Is this true for all cases?
10% is the minimum equity required. Apeetogosan, like any other lender, is concerned about controlling its level of risk. The age and type of security pledged to secure the loan often dictates the minimum level of equity required from the applicant. In addition, the level of risk due to the nature of the business also influences the minimum equity required. The loan will still require the necessary security as per policy.
4. What are Apeetogosan’s interest rates compared to conventional banks?
Apeetogosan’s interest rates are comparable to rates charged by most of Canada’s major chartered banks. Our benchmark rates are based on rates established by the Royal Bank of Canada and adjusted according to risk.
5. Does Apeetogosan charge a loan fee?
Yes. The loan fee is charged to cover the costs of conducting business. These costs include fees for reviewing your loan application, fees for preparing your loan application, administration fees for preparing and registering the security documents and other “out of pocket” costs incurred by Apeetogosan. The loan fee does not cover any legal costs that may arise (ex. Notarization of a Personal Guarantee). Generally, the loan fee is a minimum of 1% of the total amount approved. This fee may be adjusted depending on the level of risk and/or administration costs.
6. What sort of criteria does Apeetogosan use when reviewing loan applications?
- The credit history of the applicant.
- The viability of your business proposal. That is, does it make sense? Is there a solid, verifiable market for your product or service?
- Management capabilities, experience and background of the applicant.
- Cash flow prospects for the business to ensure you can comfortably repay the loan.
- The competitive position of your business in the industry it is involved in.
- The level of collateral security provided for the loan.
- Your business’s sensitivity to external factors such as the economy, dependence on certain industries, etc. If so, are contingency plans available? That is, are there alternate sources of repayment?
7. What are the more common reasons why some loan applications are declined?
- Not enough owner equity in the business
- The business appears too risky
- The prospects of repayment are poor
- There is not enough security
- The applicants have inadequate management skills
- The product or market is unproven
- The applicant has a poor credit history
Loan Applicants Must:
- Be Métis or Non-Status Indian
- Be a resident of Alberta for at least 6 months
- Be a minimum of 18 years of age
- Have a business plan that demonstrates capacity to repay the loan. (We can advise applicants how these can be prepared)
- Have a minimum cash equity of 10% of the total cost of the project. (This minimum 10% equity requirement may be greater depending on type and size of project)