Can I get business loans from Credit Unions in Canada?
Yes, credit unions offer a range of lending services to businesses (credit unions, term loans, lines of credit, commercial mortgages, business vehicle loans), often with competitive rates and personalized service.
Credit unions often provide competitive interest rates compared to traditional banks, which can result in lower borrowing costs. Credit unions are member-owned and typically offer more personalized service. They may take the time to understand your business needs and offer tailored solutions.
Business loans from credit unions often come with flexible terms and repayment schedules that can be customized to fit your business cash flow.
As an alternative, you can also take out a personal loan. Your possible expenses:
Personal loan calculations for 1 year (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 20,000 | 7.55% | 818 |
| 20,000 | 10.55% | 1,143 |
| 20,000 | 13.55% | 1,468 |
| 50,000 | 7.75% | 2,099 |
| 50,000 | 10.75% | 2,911 |
| 50,000 | 13.75% | 3,724 |
| 100,000 | 7.95% | 4,306 |
| 100,000 | 10.95% | 5,931 |
| 100,000 | 13.95% | 7,556 |
| 200,000 | 8.15% | 8,829 |
| 200,000 | 11.15% | 12,079 |
| 200,000 | 14.15% | 15,329 |
How to Apply for a Business Loan from a Credit Union?
You need to become a member of the credit union. Membership criteria can vary, but it often involves living or working in a certain area or being part of a specific organization or community.
Prepare a comprehensive business plan outlining your business goals, financial projections, and how you intend to use the loan funds. Provide up-to-date financial statements, including income statements, balance sheets, and cash flow statements.
Your personal and business credit history will be evaluated as part of the loan approval process. Depending on the loan type and amount, you may need to provide collateral to secure the loan.
Submit a loan application along with all required documentation. The credit union will review your application and may request additional information. If approved, you will receive the loan funds according to the agreed terms and conditions.
You can see the similar FAQ at the link:
- Financial calculators from B2B bank
- How do I apply for a CIBC personal loan?
- How do I apply for a line of credit from CIBC?
- How to apply for a loan from B2B Bank online?
- How to apply for line of credit from BMO Harris?
Details of companies offering the financial services:
First Ontario Credit Union
Head office’s address: 970 S Service Rd, Stoney Creek, ON
Contact center: 800-616-8878
Web-site: https://www.firstontario.com/
Meridian Credit Union
Head office’s address: 3280 Bloor Street West Centre Tower, Suite 2700 Toronto, ON, M8X 2X3
Contact center: 866-592-2226
Phone: 416-597-0165
Web-site: https://www.meridiancu.ca/
Swift code: MRCUCA21
Stock code: MRBK
BSB: 837
Servus Credit Union
Head office’s address: 51 Karl Clark Rd NW, Edmonton, AB
Contact center: 877-378-8728
Web-site: https://www.servus.ca/