TD Canada Trust business financing vs Voxen Capital
For a business with filed statements and clean guarantor credit, a TD business line of credit is cheaper than any non-bank alternative and should be the first application. A Voxen line of credit is built for the gap TD's process leaves: it underwrites the last six to twelve months of deposit activity rather than the last filed fiscal year, so a business that has grown since its statements were prepared is measured on what it does now. It funds in days and charges interest only on the drawn balance.
Start an applicationSide by side
| Best for | TD Canada Trust business line of credit: Retail-hours banking with a long-established SMB lending desk — Business Line of Credit: Fluctuating cash needs, payroll smoothing |
|---|---|
| Typical range | TD Canada Trust business line of credit: Set by the bank; SMB facilities commonly $25K–$5M+ — Business Line of Credit: $25K – $500K |
| Speed to funding | TD Canada Trust business line of credit: Typically 3–10 weeks end to end — Business Line of Credit: 3–10 days |
| Cost | TD Canada Trust business line of credit: Prime-based; the lowest pricing available to a bankable file — Business Line of Credit: ~8–20% APR |
| Collateral | TD Canada Trust business line of credit: General security agreement plus personal guarantee — Business Line of Credit: Often unsecured |
Choose TD Canada Trust business line of credit when
- Filed statements support the limit you are asking for
- You value branch access and extended hours for day-to-day banking
- The facility is long-term working capital, reviewed annually
- Guarantor credit is strong and the file has no recent blemishes
Choose Business Line of Credit when
- Trailing deposits are materially stronger than the last filed year
- You have been asked for statements you cannot produce quickly
- The need is immediate — an order, a payroll gap, a supplier deposit
- Canadian credit history is thin because the business or the owner is new here
When both make sense
Two lines is a normal structure, not a failure of the first one: TD Canada Trust for the base limit the business always needs, and a faster facility for the peaks — a seasonal build, a large order, a payroll cycle that lands badly.
Drawing on the second one rarely disturbs the first. What lenders react badly to is discovering a facility they were not told about, so disclose it and the structure reads as planning rather than distress.
About TD Canada Trust
TD runs one of the largest retail branch networks in Canada and the longest counter hours among the big banks, which matters more than it sounds for an owner-operator who cannot leave the shop between nine and four. Small-business lending is handled through dedicated business advisors rather than the retail counter.
Like every chartered bank, TD prices business credit against filed statements and guarantor credit. Longer hours make the bank easier to reach; they do not change what adjudication asks for.
What tends to stall at TD Canada Trust
None of these are judgements on a business. They are the places where a bank's credit test and a working company's reality diverge, and they are the files that reach us most often.
Businesses whose deposits are strong but whose filed statements lag reality by a year.
Owner-operators who draw heavily from the business, which depresses the very net income the bank underwrites.
Files where the requested limit is small enough that full bank adjudication is slow relative to the amount at stake.
A guarantor with thin Canadian credit history — newcomers and recently incorporated operators in particular.
Where these numbers come from
TD Canada Trust sets and publishes its own rates and conditions. Nothing here is a quote from TD Canada Trust. The institution column describes how this kind of Canadian bank lending is structured — what secures it, roughly how long it runs, what it is priced against — so the two can be weighed on the dimensions that actually differ. For current terms, ask TD Canada Trust directly.
Frequently asked questions
TD asked for two years of financial statements and I only have one. What now?
That is the single most common reason a viable business is turned away at a chartered bank, and it is not a judgement on the business. A Voxen line of credit reads bank statements rather than filed financials, so one year of consistent deposit activity can be enough to establish a limit.
Can I keep my TD accounts and still borrow from Voxen?
Yes. Voxen does not require you to move your operating accounts. Most clients keep their bank relationship exactly as it is — it is the relationship that eventually gets them bank pricing.
Should I apply to the bank first?
If the file is bankable and the timeline allows, yes — bank money is the cheapest money. With a line of credit specifically, the thing worth checking is what limit the bank will actually grant, not just whether it approves. A limit set below what the business needs solves nothing, and that is often the point at which a second facility makes sense alongside it.
Related
- Chartered bank term loan vs Business Line of Credit — A chartered bank term loan is cheaper and should be your first call if the business is bankable — two or more years of history, clean financials and strong credit.
- Invoice Factoring vs Merchant Cash Advance (MCA) — If the business invoices other businesses, factoring is almost always the cheaper answer — it advances money the business has already earned, priced from 1.5% per 30 days, and creates no debt.
- Term Loan vs Merchant Cash Advance (MCA) — A term loan is the cheaper instrument and the right one whenever the file can carry it — fixed payments, a defined end date, and pricing quoted as an annual rate.
- Equipment Financing vs Term Loan — If the money is going into a specific piece of equipment, finance the equipment.
- Purchase Order Financing vs Invoice Factoring — These are not alternatives — they are consecutive.
- Inventory Financing vs Business Line of Credit — A line of credit is underwritten on the business as a whole and can be spent on anything; inventory financing is underwritten on the stock and is used to buy stock.
- Equipment Financing vs Business Line of Credit — Buy the machine on equipment financing and keep the line of credit for working capital.
- RBC Royal Bank business operating line vs Business Line of Credit — If RBC will approve the operating line inside your timeline, take it — the rate on a bank line is lower than anything a non-bank lender can price.
- Scotiabank receivables-secured operating facility vs Invoice Factoring — A Scotiabank receivables facility is the cheaper way to finance invoices and the right call if your receivables fit a bank margin formula: many customers, none dominant, all under ninety days, all easy to credit-check.
- BMO Bank of Montreal equipment term loan vs Equipment Financing — If BMO will write the equipment term loan and the delivery date allows, take the bank rate — nothing else prices lower on a long-lived asset.
- CIBC business term loan vs Term Loan — A CIBC business term loan is the cheapest way to fund a defined, one-time capital need, and a bankable file should apply there first.
- National Bank of Canada receivables-secured operating facility vs Invoice Factoring — For a Quebec business with a diversified receivables book, a National Bank operating facility is cheaper than factoring and easier to run in French from end to end.
- Desjardins equipment financing through a caisse vs Equipment Financing — If you are an established Desjardins member and the caisse will finance the machine, that is the cheapest capital available and the relationship is worth protecting.
- Vancity business line of credit vs Business Line of Credit — For a British Columbia business whose work fits Vancity's mandate, a credit union line of credit is cheaper than a non-bank facility and worth the application.
- ATB Financial equipment term loan vs Equipment Financing — For an Alberta business buying new equipment, ATB is a genuinely well-matched lender and should get the first quote — provincial focus means the underwriting understands your cycle.