What do I need to qualify for a small business loan in Canada?

Most lenders look for at least six to twelve months in business, a minimum monthly revenue, business bank statements, and a personal credit check on the owner. Government-backed programs have their own eligibility rules.

How fast can a business get funded?

Online working-capital lenders can fund within a few business days once statements are verified. Bank term loans and government-backed programs take considerably longer.

Term loan or line of credit?

A term loan suits a one-time investment such as equipment or a build-out, with a fixed repayment schedule. A line of credit suits recurring cash-flow gaps because you only pay interest on what you draw.

Business loans

Financing that fits how your business actually earns

Working capital, equipment, expansion or a seasonal cash-flow gap — the right product depends on what the money is for and how quickly the business converts it back to revenue. Here's how the options compare.

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Options

Six ways Canadian businesses borrow

Term loan

A lump sum repaid on a fixed schedule. Best for a one-time investment: equipment, a build-out, a hire, an acquisition.

Line of credit

A revolving limit you draw from as needed and only pay interest on. Best for seasonal cash-flow gaps and payroll smoothing.

Merchant cash advance

An advance repaid as a percentage of daily card sales. Fast and flexible, but the effective cost is usually the highest of these options — check the factor rate.

Equipment financing

The equipment secures the loan, so rates are lower and approval leans on the asset rather than purely on your credit.

Invoice factoring

Sell outstanding invoices at a discount for immediate cash. Useful when your customers pay on 60 or 90 day terms.

Government-backed programs

Programs such as the Canada Small Business Financing Program carry favourable terms but slower, more documentation-heavy approvals.

Estimate your repayment

Business borrowing is usually shorter-term than consumer credit, so the monthly payment is larger even when the rate looks similar. Model it before you commit.

Business loan calculator

Estimate your payment before you apply. Move the sliders to see how the amount, term and rate change what the loan actually costs you.

Loan amount$60,000

Term36 months

Interest rate11.90%

Estimated monthly payment

$1,989.99

Amount borrowed: $60,000
Total interest: $11,639.79
Total repaid: $71,639.79

Estimates only, based on equal monthly payments and the rate you enter. Your actual offer depends on the lender, your credit profile and any fees.

How it works

Getting funded

Answer a few questions

Tell us the amount you need and a little about your situation. It takes about two minutes and never touches your credit score.

Compare your offers

See the lenders you qualify with side by side — rate, term, monthly payment and fees — and pick the one that costs you the least.

Get funded

Finish the application with the lender you chose. Several of our personal loan partners deposit funds within 24 hours of approval.

Business financing questions

Put the right financing behind your next move

Tell us what the money is for and we'll show you which type of financing fits — and who funds it.