Business loans
New businesses can get loans. Here is what lenders want to see, the best places to look, and how to get ready.
Business loans
New businesses can get loans. Here is what lenders want to see, the best places to look, and how to get ready.
The short answer
A new business has no track record yet. The lender can’t look back at years of sales. So it looks at other things: you, your plan and your personal credit.
That does not mean no. It means you need to be ready.
| Option | How much | Good to know |
|---|---|---|
| CSBFP loan | Up to $1.15 million | Start-ups can apply. For equipment, space, improvements and some working capital. You get it through a bank or credit union. |
| Futurpreneur | Up to $75,000 | For owners aged 18 to 39. Comes with a mentor. For businesses up to 2 years old. |
| Credit unions | Varies | Often know the local market and can be flexible. |
| BDC | Varies | The government’s business bank. Its Small Business Loan asks for 2 years in business, so ask about its other options. |
Grants just to start are rare. Most grants are for businesses that already have sales. Once you are up and running, more doors open. See how grants work.
Want help putting your plan and loan file together? Tell us about your business.
It is possible. Start-ups can apply for CSBFP loans and Futurpreneur. Lenders will look at your plan, your own money in, and your personal credit.
There is no single rule. Lenders like to see that you are putting some of your own money in, because it shows you share the risk.
There is no single number. A good personal score helps a lot, because a new business has no credit history yet. Read more.
Not usually. Most help for start-ups comes as loans and mentoring. Grants are more common once you have sales.
Keep reading
3 min readHow to get a business loan in Canada in 6 simple steps: what lenders check, the documents you need, which loan fits, and how to get a faster yes.
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4 min readFree business loan calculator for Canadian owners. Enter the amount, rate and years to see your monthly payment, total interest and total cost in seconds.
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3 min readWhat credit score do you need for a business loan in Canada? There’s no single number. Here’s what lenders look for, the score ranges, and how to raise yours.
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