Canada’s six major banks—TD, RBC, Scotiabank, BMO, CIBC, and NBC —all offer loan programs for small businesses. Some of these banks offer funding through the Canada Small Business Financing program in addition to other funding options such as term loans, lines of credit, asset-based financing, operating credit, equipment financing, commercial mortgages, and more.
Every bank offers different loan options with different amounts, terms, and fee structures. Short term and operating loans, mid term, and long term loans are available with loan amounts starting at $10,000. 7-10 year repayment terms are common, but some loan options have terms up to 30 years.
Who is eligible for a bank loan?
Depending on the type of funding you’re seeking, funding from commercial banks (excluding Canada Small Business Financing Loans) may be harder to acquire than other lenders. Most small businesses lack the credit history or don’t have the collateral required to qualify, especially if they’re in the start up phase. In this case, alternative lenders may be the best option, especially if you’ve been in business for at least six months.
How to apply for a bank loan
Commercial banks typically do not offer an online application, and require business owners to speak to a representative in-person or on the phone to initiate an application. Application fees may apply.
Rates and fees
Fixed and variable rates are available depending on the specific type of funding you’re seeking.
Who should apply for a bank loan?
Established business with strong credit and financial histories seeking larger loans and longer terms