Gain ACCESS to CAPITAL in Canada during Economic Uncertainty

15 Apr 2023 · 1 min

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The video (by Jayson Lowe) discusses barriers to accessing capital in Canada during the COVID-19 pandemic. Speaker A explains that pandemic-driven job losses and business cash-flow problems led banks to tighten lending—refusing new loans to those with layoffs or unstable income—reducing borrowers' ability to obtain capital or collateralize assets because lending rules and risk assessments were outside individual control.

Chapters

Given again, the COVID climate. A lot of people were out of work or businesses were struggling to make payrolls. There was a lot of flux and change in a short period of time. And a lot of banks were holding on to money and they weren't releasing, they weren't granting loans the way that they were before because they were concerned about the ability to make repayments. And if you lost your job or had a layoff temporarily, no bank is going to lend you new money. They're not going to take that risk. So your ability to access capital or collateralize an asset you have is mitigated. It's limited because you don't control the rules.