My bank declined my business loan. What are my options in Canada?
A bank decline is a verdict on your balance sheet, not your business. Factoring approves on your customers' credit, equipment financing on the asset, and cash-flow products on your deposits — three separate paths that don't retake the test you just failed.
Start an applicationBanks underwrite history: credit score, financial statements, years in business. When a file fails that test, the alternatives that work are the ones underwriting something else. Invoice factoring is approved on the creditworthiness of the customers who owe you money. Equipment financing is secured by the machine itself. Merchant cash advances and revenue-based products read the actual deposits moving through the account.
The practical move is matching the decline reason to the product: declined for thin history — factoring or an advance; declined for credit score — asset-backed or receivable-backed products; declined for collateral — products where the receivable or the equipment is the collateral.
A decline also isn't permanent. Twelve months of clean payments on an alternative facility, reported and documented, is exactly the history the bank asks for on the next application. Many Voxen files run that route deliberately: alternative first, bank later.
Baseline eligibility, by product
Figures are typical ranges for a complete file, not guarantees. Final terms depend on revenue, time in business, credit profile and lender review.
| Merchant Cash Advance (MCA) | Business operating in Canada for 4+ months (some lenders 6+ months) |
|---|---|
| Business Line of Credit | 12+ months in business (most non-bank lenders); 24+ months at chartered banks |
| Invoice Factoring | Sell to other businesses or government on terms (net-30/60/90) |
| Equipment Financing | 6+ months in business (12+ for the most competitive pricing) |
| Term Loan | 24+ months in business (some lenders 12+) |