Loan Details & Benefits
Click on each loan type below to learn more about its key features and benefits.
Term Loans
- Fixed-term loans for a specific amount of money, often used for capital investments such as equipment or real estate.
- Terms can range from a few months to several years.
- Interest rates can be fixed or variable.
Equipment Financing
- Loans or leases for purchasing or leasing equipment and machinery.
- The equipment often serves as collateral for the loan.
- Can be structured as term loans or leases.
Merchant Cash Advances
- An advance on future credit card sales, often used by retail businesses.
- The lender takes a percentage of daily credit card sales as repayment until the advance is paid off.
SBA Loans
- Although more common in the United States, Canadian businesses may be eligible for certain programs through the Small Business Administration (SBA).
- Offers various loan programs for small businesses with competitive terms.
Lines of Credit
- Revolving credit facilities that provide businesses with access to funds up to a certain limit.
- Useful for managing cash flow fluctuations and short-term financing needs.
- Interest is typically charged on the amount of money borrowed.
Commercial Mortgages
- Loans for purchasing commercial real estate such as office spaces, warehouses, or retail locations.
- Terms and interest rates can vary depending on the lender and property type.
Government-Backed Loans & Grants
- Loans and grants supported by government agencies such as the Canada Small Business Financing Program (CSBFP).
- These programs may offer favorable terms and conditions for qualifying businesses.
Startup Loans
- Loans specifically designed for new businesses and startups.
- May have less stringent credit requirements but often require a solid business plan.
How to Qualify
Learn the essential criteria and documents needed to secure your business loan.
(Note: Not all criteria may apply or be relevant for your loan application. Contact us to determine what you need for successful business funding!)
Business Profile
- Business Structure: Information about the type of business (e.g., sole proprietorship, partnership, corporation).
- Business Age: How long the business has been operational.
- Industry: The industry or sector in which the business operates.
- Ownership and Management: Information about the owners and key management personnel, including their experience and qualifications.
Credit History
- Business Credit Score: The business’s credit history and score, which lenders use to assess risk.
- Owner’s Personal Credit Score: For smaller businesses, lenders may also consider the personal credit score of the business owner(s).
Purpose & Amount of Loan
- Loan Amount: The requested loan amount and whether it aligns with the business's financial needs.
- Loan Purpose: How the business plans to use the funds (e.g., working capital, expansion, equipment purchase).
Additional Information
- Bank Statements: Recent bank statements to demonstrate cash flow and financial stability.
- Tax Returns: Business tax returns for the last few years to verify income and financial performance.
- Business Plan: A detailed plan outlining the business model, strategy, and future projections.
- References: Professional references such as suppliers, vendors, or customers that can vouch for the business.
Financial Statements
- Revenue and Income: Historical data on the business’s revenue and profit margins.
- Balance Sheet: Details on the business's assets, liabilities, and equity.
- Cash Flow Statement: Information on cash inflows and outflows over a specific period.
- Accounts Receivable and Payable: Outstanding invoices and bills.
Collateral
- Assets as Collateral: Information about any business assets that could be used as collateral, such as real estate, equipment, or inventory.
Legal & Compliance
- Legal and Tax Compliance: Evidence that the business is in good standing with regulatory bodies and up to date on tax payments.
- Legal Issues: Disclosure of any pending legal issues or lawsuits that could affect the business's ability to repay the loan.
Other Considerations
- Industry Risks and Trends: Lenders may consider industry-specific risks and economic trends that could impact the business.
- Owner’s Experience: Lenders may also assess the business owner's experience and track record in running the business.