Can I apply for a business loan online?
Yes, many banks, credit unions, and online lenders offer the convenience of applying for business loans through their websites. To choose the best dial, first you should look for lenders that offer business loans online. Compare their interest rates, terms, and requirements.
Complete the online application form on the lender’s website. This will typically include information about your business, its financial status, and your personal information. Prepare the required documents, such as your business plan, financial statements, tax returns, and personal identification and upload them.
After submitting your application, the lender will review your information and notify you of their decision. This process can take anywhere from a few hours to several days. You will receive the loan agreement to review and sign. Once you accept the terms, the funds will be disbursed to your business account.
What are the types of commercial loans?
There are several types of commercial loans available to businesses.
- Term Loans
- Business Lines of Credit - provides businesses with access to a set amount of capital that can be drawn upon as needed.
- Equipment Financing - specifically designed to finance the purchase of equipment.
- Commercial Real Estate Loans - used to purchase or refinance commercial property.
- SBA Loans - offer favorable terms and are designed to help small businesses access financing.
- Merchant Cash Advances - provides businesses with a lump sum of capital in exchange for a portion of future sales.
- Invoice Financing - allows businesses to sell their outstanding invoices at a discount to get immediate cash.
- Working Capital Loans - designed to finance day-to-day operational expenses.
- Franchise Financing - specifically tailored for purchasing or expanding a franchise.
- Trade Finance - provides funding for businesses involved in international trade.
- Bridge Loans - short-term loans used to bridge the gap between immediate financing needs and long-term funding solutions.
- Microloans - small loans, typically offered by non-profit organizations or community lenders, aimed at startups or very small businesses.
- Revenue-Based Financing - lenders provide capital in exchange for a percentage of monthly revenue until the loan is repaid.
Business loan calculations for 3 years (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 500,000 | 6.00% | 46,250 |
| 500,000 | 15.00% | 115,625 |
| 500,000 | 25.00% | 192,708 |
| 1,000,000 | 6.50% | 100,208 |
| 1,000,000 | 15.50% | 238,958 |
| 1,000,000 | 25.50% | 393,125 |
| 2,500,000 | 7.00% | 269,792 |
| 2,500,000 | 16.00% | 616,667 |
| 2,500,000 | 26.00% | 1,002,083 |
| 5,000,000 | 7.50% | 578,125 |
| 5,000,000 | 16.50% | 1,271,875 |
| 5,000,000 | 26.50% | 2,042,708 |
What are emergency business loans in Canada?
Emergency business loans in Canada are designed to provide quick access to funds for businesses facing unexpected financial challenges or urgent needs. These loans can help businesses manage cash flow disruptions, cover unexpected expenses, or survive economic downturns.
What are the features of unsecured business loans?
Unlike secured loans, unsecured business loans do not require business assets, such as property or equipment, to be pledged as collateral. Because these loans are riskier for lenders, they typically come with higher interest rates compared to secured loans. The rates can vary based on the lender, the creditworthiness of the business, and market
Unsecured business loans often have shorter repayment terms, usually ranging from a few months to a few years. This helps lenders mitigate risk but may require businesses to make higher monthly payments.
The absence of collateral means less paperwork and fewer requirements for asset valuation, resulting in a quicker approval process. Many online lenders can approve and disburse funds within a few days or even hours.
Businesses can use the loan proceeds for various purposes, such as working capital, inventory purchase, expansion, marketing, or other operational needs.
Many unsecured business loans require a personal guarantee from the business owner. This means the owner is personally responsible for repaying the loan if the business defaults.
Due to the higher risk, unsecured business loans typically offer smaller loan amounts compared to secured loans. The maximum loan amount varies by lender and the business’s creditworthiness.
Lenders may offer either fixed or variable interest rates. Fixed rates remain constant throughout the loan term, while variable rates can fluctuate based on market conditions.
To offset the lack of collateral, lenders may impose stricter qualification criteria, including higher credit score requirements, longer time in business, and higher minimum revenue thresholds.
You can also see the similar FAQ about Canadian banks:
Details of companies offering the financial services:
Bank Of Montreal
Head office’s address: 119, rue Saint-Jacques Montreal, Quebec H2Y 1L6
Contact center: 877-225-5266
Phone: 416-867-5000
Web-site: http://www.bmo.com/main/personal
Swift code: BOFMCAM2
Stock code: BMO
BSB: 001
TD Bank
Head office’s address: Toronto-Dominion Centre, Po Box 1 Stn Toronto Dom, Toronto
Contact center: 866-222-3456
Web-site: https://www.td.com/about-tdbfg/our-business/index.jsp
Swift code: TDOMCATTTOR
Stock code: TD
BSB: 004
Bank Of Montreal
Head office’s address: 119, rue Saint-Jacques Montreal, Quebec H2Y 1L6
Contact center: 877-225-5266
Phone: 416-867-5000
Web-site: http://www.bmo.com/main/personal
Swift code: BOFMCAM2
Stock code: BMO
BSB: 001
CIBC
Head office’s address: 199 Bay St, 44th Floor Toronto
Contact center: 800-465-2422
Web-site: https://www.cibc.com/en/personal-banking.html
Swift code: CIBCCATT
Stock code: CM
BSB: 010
Lending Loop
Head office’s address: 410 Adelaide St W Toronto
Contact center: 1-(888)-223-5667
Web-site: https://www.lendingloop.ca
Merchant Growth
Head office’s address: 200 – 171 Water St,
Phone: (866) 240-3694
Web-site: https://www.merchantgrowth.com
OnDeck Canada
Phone: (855) 704-7458
Web-site: https://www.ondeck.ca
RBC Royal Bank
Head office’s address: 200 Bay St, 9th Floor South Tower, Toronto
Contact center: 800-769-2511
Web-site: http://www.rbc.com/canada.html
Swift code: ROYCCAT2
Stock code: RY
BSB: 003
Scotiabank
Head office’s address: Scotia Plaza, 44 King Street West Toronto
Contact center: 800-472-6842
Phone: 416-866-6430
Web-site: http://www.scotiabank.com/ca/en/0,,2,00.html
Swift code: NOSCCATT
Stock code: BNS
BSB: 002
StellerVista Credit Union
Head office’s address: 3014 Hwy 6. PO Box 39. Slocan Park, BC V0G 2E0
Contact center: +1 866-960-6666
Mail address: [email protected]
Web-site: https://www.stellervista.com/welcome