You may be able to borrow between $5,000 and $1 million to start or grow your company with a business loan. Find out more about how much business financing you can get with different types of loans and lenders, and compare several providers to find the best option for your needs.
Business lenders typically offer between $5,000 and $500,000, although the amount you’ll get usually depends on which lender you choose. The amount you can borrow also depends on personal factors such as your credit score, debt-to-income ratio and business revenue.
You’ll usually be able to access more money if you have an established business, a strong credit rating and a decent amount of disposable income. You’ll be able to borrow less if you’re just starting out or if you have a poor credit history.
You may be able to qualify for the following amounts based on which lender you choose:
If you’re wondering how much of a bank loan you can get for a business, first understand that banks tend to offer the largest business loans out of any provider. Many banks offer business term loans starting at $5,000 and up to $1 million, although you may have to put up collateral such as your business equipment or real estate to qualify.
| Providers include: | BMO, TD Bank, RBC, CIBC, Scotiabank, Canadian Western Bank and National Bank. |
Credit unions usually offer smaller business loans typically between $5,000 and $100,000. These loans are usually more flexible than bank business loans and may require you to meet less strict eligibility criteria to qualify.
| Providers include: | Meridian, Servus, Vancity, connectFirst, Conexus, First West, Steinbach, Alterna Savings and Coast Capital Savings. |
Guide to credit union business loans
Online lenders typically offer business financing as low as $5,000 and up to $300,000, though you may be able to find providers that offer more. Larger funding amounts typically need to be backed by collateral such as business equipment or real estate.
| Providers include: | Loans Canada, SharpShooter, Journey Capital, Driven and Merchant Growth. Compare more online business loans below. |
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There are a several types of business loans that will let you borrow varying amounts of money:
You can borrow up to $1 million if you get a CSBFP loan, which is mostly backed by the federal government and administered through banks. Up to $350,000 of a CSBFP loan can be used for equipment and leasehold improvements. Read our full guide to CSBFP loans to learn more about how it works and how to apply.
How much you can get with a business term loan is typically between $5,000 and $1 million, though many lenders will cap their loans at less than $500,000 (or even $50,000 to $100,000 in some cases). As with other types of business loans, larger amounts are typically only available with collateral.
Many banks offer business lines of credit starting at $10,000, with the maximum limit defined by your business needs and financial position. Private lenders offer lines of credit that can go as high as $500,000 when secured by business assets. or as high as $50,000 when unsecured.
A merchant cash advance gives you an advance on your future sales. Most lenders that offer merchant cash advances will let you borrow between $5,000 and $50,000. You’ll pay this money back using a predetermined portion of the credit card sales for your business each month.
You may be able to borrow between 80% and 100% of the value of the equipment or vehicles you want to purchase — usually up to $500,000 with a bank or online lender. You can also borrow up to $350,000 for equipment with a CSBFP loan. Learn more about equipment financing here.
Business microloans run from around $500 to around $10,000 depending on the provider. These are meant to fund small startup costs and are usually available to entrepreneurs and bad credit borrowers.
Alternative business loans like invoice factoring might get you more funding than a term loan or line of credit because of the way they’re structured. Invoice factoring involves selling your unpaid invoices at a discount and can let you borrow thousands of dollars against the money you’re owed.
But beware: this tends to be much more expensive than your standard term loan and are generally best saved as a last resort.
If you want to get a loan to start a business, you’re more likely to qualify for a small business loan worth less than $10,000. That said, you may be able to qualify for up to $1 million with some loans (such as CSBFP loans) if you can present a viable business plan and have solid finances and credit score.
Ultimately, how much of a business loan you can get to start a business will depend on factors like your financial situation and credit score. A startup loan can be much more difficult to get than a normal business loan since you won’t have a proven track record or business revenue to use as collateral to secure your payments.
The maximum loan amount a lender will give and the amount you can qualify for are often very different. Understand how the factors below can influence how much of a business loan you get:
| Higher loan amount | Lower loan amount | |
|---|---|---|
| Revenue | High amount of revenue (around $42,000+ per month) | Lower amount of revenue (around $10,000 per month) |
| Current debts | Lower debt | Higher debt |
| Collateral | Assets to use as collateral | No assets to secure your loan |
| Time in business | More established business (over 4 years) | Less established business (6 months to 4 years) |
| Credit score | Higher credit score (over 640) | Lower credit score (under 640) |
| Down payment | Larger down payment | Smaller down payment (if any) |
| Relationship with lender | Longer relationship with lender | Shorter relationship with lender |
| Personal guarantee | Willing to repay loan out of personal funds if business defaults | Not willing to repay loan out of personal funds |
Just because you can borrow a certain amount for your business doesn’t mean you should go up to that limit. The more you borrow, the more you’ll pay in interest and fees – and the higher your monthly cost will be. Calculate exactly how much you need to finance your business and limit yourself to that amount.
From applying for government-backed financing to making a hefty down payment, here are a few strategies for how to qualify to get a larger business loan:
How much business lenders offer and how much you can borrow are 2 different numbers. But the one you might want to focus on is how much you actually need to borrow for your project to avoid taking on more debt than necessary.
You can compare business lenders and learn more about how borrowing money for your business works with our comprehensive guide to business loans.
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