What happens if my business fails and I can't repay my loan?

If you find yourself unable to repay your loan, call your creditors immediately. Some loan providers may work with you to create a new repayment plan. You can also contact a licensed insolvency trustee to discuss options like consumer proposals or bankruptcy. If that doesn't work and you default on your payments, your business and/or personal assets can be seized.

Do small business loans require collateral?

Some business loans do, but not all. If your business finances are strong, you could qualify for an unsecured business loan that doesn't require collateral. But don't write off secured business loans completely. They usually come with more competitive interest rates, but you run the risk of losing your collateral should you default on the loan. Look into the benefits to see if a secured business loan can meet your needs.

Is it a good idea to take out a loan if I'm returning to eBay after a break?

It depends on your situation. Generally, it's less risky to take out a loan when business owners are up to date on the trends of their particular selling niche, as they have a decent idea of what to expect. If you've been away from eBay for a while and feel out of touch with your selling niche, you may want to wait a bit to get the feel for your sales and customers before borrowing. Keep in mind that your sales records can have an impact on your rates, terms and chances of approval, so you might want to wait until you have at least a solid few months behind you to get financing.