CIBC business loans review
- Loan Amount
- starts at $10,000
- Loan Term
- Up to 15 years
- Minimum Revenue
- Not disclosed online
- Minimum Time in Business
- You’ll need to prove that your business generates positive revenue, meaning your inflows exceed your outflows for at least 12 to 24 months.
Our verdict
Get the money you need to sustain your cash flow and fund your business expenses with a CIBC business loan.
CIBC offers flexible financing solutions at competitive rates to small, medium and large businesses.
The downside of a CIBC business loan is that you won't be able to borrow less than $10,000 (which isn't ideal if you only want to take out a small loan). You'll also need to book an appointment to speak to a CIBC adviser about signing up for a loan as you can't apply for financing online.
Pros
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Flexible loan amounts
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Flexible loan terms
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Reputable lender
Cons
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Bad credit may not qualify
What is CIBC?
CIBC (also known as the Canadian Imperial Bank of Commerce) is one of Canada’s biggest and most reputable banks. It serves over 11 million clients globally and provides banking services to millions of Canadians. In particular, this bank is well known for offering a high level of customer service and enhanced security measures to meet all of your banking needs.
Do I qualify?
You may be able to qualify for a CIBC business loan if you can prove that you meet certain eligibility criteria. These include having a significant amount of industry experience, a detailed business plan, a high credit score and a personal financial stake in your business.
You’ll also need to be able to show that your business has the capacity to earn enough money to allow you to pay back your loan on time. There could also be other requirements that you have to fulfill depending on how much you borrow and how you want to use your funds.
Main eligibility criteria for a CIBC business loan
You need to meet the following eligibility criteria if you want to get a CIBC business loan:
- You need to be able to demonstrate that you have industry experience and be able to provide a detailed business plan.
- You’ll have to show that you have personal financial investments in your company.
- You’ll need to prove that your business generates positive revenue, meaning your inflows exceed your outflows for at least 12 to 24 months.
- You’ll need to have a good to excellent credit score.
What are CIBC’s business loans?
There are four main types of CIBC business loans:
- Business loans
- Business lines of credit
- Business overdrafts
- Canada Small Business Financing Program (CSBFP) loan
CIBC business loan
A CIBC business loan functions just like any other loan you might borrow for personal use. You’ll have to decide if you want a fixed or variable interest rate on the money you take out and then agree to make repayments on the amount you borrow according to a set schedule.
These loans start from $10,000 and can help you finance large business expenses or cash flow requirements. They come with terms that can extend up to 15 years, with secured and unsecured financing options.
CIBC business line of credit
Get approved to borrow up to a limit and get flexibility with repayments. Choose between a secured or unsecured business line of credit. Pay interest only on the amount you borrow.
CIBC overdraft protection
Get overdraft protection to cover urgent shortfalls. Access a higher limit and lower interest rate when you secure it with cash.
CSBFP loan
A CSBFP loan lets you borrow money that’s backed by the Canadian government. You can qualify for up to $1,000,000 to finance business real estate or up to $500,000 for leasehold improvements and equipment.
You’ll face a 2% registration fee, plus the lender may charge any fees normally charged for a similar business loan. You’ll have to personally guarantee up to 25% of the amount you borrow and you’ll also only be eligible to apply if your business makes less than $10 million per year.
What are the benefits of a CIBC business loan?
- Flexible loan options. You can apply for a small business loan sponsored by the bank or the Canadian government, depending on what you need to borrow money for. You can also a get a business line of credit or overdraft protection.
- Large amounts. You can apply for up to $1,000,000, depending on your business needs and what type of loan you want to take out.
- Fixed or variable interest rates. You can choose to pay your loan back with a fixed or floating interest rate, depending on your preferences.
- Long amortization periods. You could have the option to pay your loan back over a long term (up to 15 years).
What to watch out for
- No online application. You won’t be able to apply for financing online, so you’ll need to visit a branch to get your application rolling.
- No loans for less than $10,000. You won’t be able to borrow less than $10,000 if your business doesn’t need a huge input of cash.
- Interest rates aren’t listed online. You won’t know how much you’ll have to pay until you go into CIBC in person to speak to an agent. Learn more about business loan rates.
- Poor customer reviews. There are several negative reviews that customers have left about CIBC’s services online, though these aren’t specific to its business products.
Compare other business loans
How much will my loan cost me?
The amount that you’ll pay for your loan will vary based on what type of loan you take out. It will also be influenced by personal factors such as your credit score, the term of your loan, the length of time your business has been in operation and whether you have any assets to secure your financing with.
That said, there’s very little information online about what CIBC’s interest rates might be. The best way to find out how much you’ll need to pay for a CIBC business loan is to speak to an agent in-person about your financial situation and lending requirements.
Applicable fees
You may need to pay additional fees to secure financing above and beyond the money you’ll pay in interest. The total amount you’ll have to pay should be outlined in your loan agreement. That said, any fees you might need to pay aren’t outlined transparently on the website so you should ask about them when you apply in-person at a physical branch.
How do I apply?
If you want to apply for a loan with CIBC, you’ll have to book an appointment with a CIBC representative at a physical branch. You’ll usually have to supply documents to prove your income and demonstrate that you meet the eligibility requirements (listed at the top of the page).
What happens after I apply?
CIBC will review your application and make a decision. Since it doesn’t accept online applications, it could take several weeks for CIBC to fully process your information. That said, for simple applications, you could have your funds within two business days of being approved.
I got the loan. Now what?
Once you’ve been approved for a loan, you’ll be able to use your funds to make purchases or supplement your cash flow. From there, you’ll need to focus on repayment over the term of your loan. Your loan repayments will typically be withdrawn from your bank account every month on the same date. You’ll need to make sure you factor your interest rates and additional fees into your total amount to make sure you can budget for the total cost of your loan.
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