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Proof of Funds/Landing Funds/Business Funds - Self Employed

typeaimages

Star Member
Apr 1, 2020
99
31
Our application was going over final evaluation with our lawyer before submission. He said it's been flagged as our "liabilities" exceed liquid funds, according to the amounts on the Form 6A. However, that amount of liabilities includes our house (which we would obviously be selling and in turn have the equity from), my car (which I would be selling and not taking with me), and debt that will be paid down in full before landing. Even with the debt vs. liquid assets as it stands currently, we have a positive net worth in the 6 figures. My lawyer said for this stream, they look at net worth.

He also mentioned that this may tell the processers that I can't set up my business upon landing, but I already come with all of my equipment necessary and the overhead for setting up this business is incredibly low.

Has anyone come up against anything like this and could anyone help calm my anxieties?! I'm just wondering if we have the landing funds....we have enough net worth....could they still turn us away? Will they take into consideration the selling of our home and paying off debt, or do they not take mitigation of their concerns into consideration?
 

ParuMani

Star Member
Feb 23, 2020
74
11
Our application was going over final evaluation with our lawyer before submission. He said it's been flagged as our "liabilities" exceed liquid funds, according to the amounts on the Form 6A. However, that amount of liabilities includes our house (which we would obviously be selling and in turn have the equity from), my car (which I would be selling and not taking with me), and debt that will be paid down in full before landing. Even with the debt vs. liquid assets as it stands currently, we have a positive net worth in the 6 figures. My lawyer said for this stream, they look at net worth.

He also mentioned that this may tell the processers that I can't set up my business upon landing, but I already come with all of my equipment necessary and the overhead for setting up this business is incredibly low.

Has anyone come up against anything like this and could anyone help calm my anxieties?! I'm just wondering if we have the landing funds....we have enough net worth....could they still turn us away? Will they take into consideration the selling of our home and paying off debt, or do they not take mitigation of their concerns into consideration?
Do you mean to say that you have borrowed money in the name of the house and its still not repaid.. Net worth should include all your assets and liabilities..

You said " we have a positive net worth in the 6 figures" .. so I dont see a problem.. how much of liquid assets do you show now.. should be around 25% of the net worth.. Also how much is required to start the business in Canada .. will this money you show as liquid assets sufficient
 

typeaimages

Star Member
Apr 1, 2020
99
31
Do you mean to say that you have borrowed money in the name of the house and its still not repaid.. Net worth should include all your assets and liabilities..

You said " we have a positive net worth in the 6 figures" .. so I dont see a problem.. how much of liquid assets do you show now.. should be around 25% of the net worth.. Also how much is required to start the business in Canada .. will this money you show as liquid assets sufficient
No, I mean we just have a regular mortgage (we've never borrowed against it). But we had to put that down as a current liability, even though we will be selling the home prior to landing in Canada (resulting in aprox. $40,000 in extra liquid cash, but since we can't PREDICT how that sale will go, we can't include that obviously)


We will have about $35,000 (USD) in liquid cash to land. Our net worth remains in positive in the 6 figures with or without the house mortgage included, which I'm hoping helps (given that we are not relying on the house being our only asset)