Business loans
Six simple steps, what lenders look at, and how to make your application easy to approve.
Business loans
Six simple steps, what lenders look at, and how to make your application easy to approve.
The short answer
Lenders want a clear answer to two questions: How much? What for?
Be exact. “$80,000 for a new oven and setup” is better than “money to grow.” If you are buying something, get a quote.
| Kind of loan | Best for |
|---|---|
| Term loan | One big cost, like equipment or a renovation. You get it all at once. |
| Line of credit | Costs that come and go. Use it, pay it down, use it again. |
| CSBFP loan | Small and new businesses. The government shares the risk with the bank. |
| Invoice factoring | Cash stuck in unpaid invoices from other businesses. |
| Emergency funding | A fast fix for a short, urgent gap. |
Not sure? Read term loan vs. line of credit.
Most lenders look at your business credit and your personal credit, especially for newer businesses. Check both before you apply, and fix any mistakes. What score do you need?
Compare the rate, the length of the loan, the monthly payment and what you must put up as security. Use our loan calculator to see your payment.
Send everything at once. Then answer questions quickly. A fast reply keeps your file moving. A bank can take a few weeks. Some lenders decide in a few days.
It is easier when your business has steady sales, good credit and clear papers. Most lenders want to see you can make the payments from your cash flow.
A bank can take a few weeks. Some online lenders decide in a few days. A complete file is the best way to speed things up.
Often, yes. Lenders may take security on equipment, property or other business assets. Many also ask owners for a personal guarantee.
Maybe. If tariffs hurt your business, you may qualify for a grant you don’t pay back. See grant options.
Keep reading
How to get a startup business loan in Canada: what lenders want from new businesses, the best options like CSBFP and Futurpreneur, and simple steps to apply.
Read the articleFree business loan calculator for Canadian owners. Enter the amount, rate and years to see your monthly payment, total interest and total cost in seconds.
Read the articleWhat 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.
Read the articleTalk to a specialist
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