How to qualify for a business line of credit in Canada
A business line of credit (LOC) is a revolving facility — you draw what you need and pay interest only on the outstanding balance. Canadian underwriters look at cash-flow consistency, time in business, and overall financial profile to size the limit and price.
Start an applicationDocuments typically required: 6–12 months of business bank statements; Most recent financial statements (interim or year-end); Business registration / articles of incorporation; Government-issued ID for owners/guarantors.
What's the typical limit on a business line of credit in Canada? Alternative LOC limits commonly land between 50%–100% of average monthly deposits. Bank LOCs vary widely based on collateral, financials, and history.
Does a line of credit require collateral? Bank LOCs are often secured (receivables, equipment, or real estate). Many alternative LOCs are unsecured but include a personal guarantee.
Typical eligibility requirements
- 12+ months in business (most non-bank lenders); 24+ months at chartered banks
- $10,000+/month in business deposits (alternative lenders); higher for banks
- Reasonable owner credit profile (typically 600+ for non-bank LOCs)
- No unresolved tax arrears or active insolvency
- Canadian-incorporated or registered sole proprietorship