Getting a business loan in Canada isn’t one path — it’s a set of options, each suited to a different need and business profile. This guide walks through what’s available, what lenders look for, and how to give yourself the best shot at approval on good terms.
Know your options
Different needs call for different products:
- Merchant cash advance — fast, revenue-based working capital repaid as a share of daily sales.
- Invoice factoring — advance on unpaid B2B invoices.
- Equipment financing — asset-backed funding for machinery and vehicles.
- Supply chain financing — capital to pay suppliers.
- Startup business loans — financing for newer businesses.
- Commercial mortgage — buy, build, or refinance property.
What lenders look for
Most lenders assess some mix of:
- Revenue and cash flow — the strongest signal you can repay.
- Time in business — more history lowers perceived risk.
- Credit — personal and business, though its weight varies by product.
- Collateral or receivables — for asset-backed and factoring options.
- Use of funds — a clear, sensible plan.
Steps to get funded
- Define the need and amount. Match the product to the purpose — don’t force a long-term loan onto a short-term gap, or vice versa.
- Gather your documents. Typically recent business bank statements (3–6 months), and for some products your A/R aging, a quote/invoice, or financial statements.
- Check your fundability. See how to become loan-ready to strengthen your case before you apply.
- Compare total cost, not headline rate. Look at the full repayment amount, fees, and how repayment affects your cash flow.
- Apply and respond quickly. Fast, complete responses keep approvals moving.
Getting help
Not sure which option fits? That’s what we do — tell us your situation and we’ll point you to the right product and connect you with a funding partner. It’s free and there’s no obligation.