Do I need collateral to get a business loan in Canada?
Not always. Working-capital products (MCA, short-term loans, lines of credit under ~$250K) are typically unsecured. Equipment financing is secured by the equipment. Larger term loans and acquisition financing usually require collateral or a personal guarantee.
Start an applicationUnsecured: MCAs, revenue-based financing, short-term loans, smaller lines of credit. Approval is based on cash flow.
Asset-secured: equipment financing (collateral = the equipment), CRE bridge loans (collateral = property), inventory lines.
Most Canadian business loans of any size include a personal guarantee from the principal(s). This is standard market practice and does not mean personal assets are pledged — it means the principal stands behind the obligation.