How to qualify for a business term loan in Canada
A business term loan is a fixed-amount, fixed-schedule financing instrument used for multi-year projects, refinancing, or capital deployment. Underwriting is deeper than working-capital products and weighs financial performance, owner profile, and use of funds.
Start an applicationDocuments typically required: 1–2 years of financial statements (year-end); Recent interim financials; 6–12 months of business bank statements; Debt schedule (existing obligations); Business registration and owner ID.
Are term loans secured or unsecured in Canada? Both exist. Smaller term loans are often unsecured with a personal guarantee. Larger facilities typically include specific or general security.
Can a term loan be used to refinance existing debt? Yes. Consolidating shorter, higher-cost debt into a single longer term loan is a common and often-recommended use of funds.
Typical eligibility requirements
- 24+ months in business (some lenders 12+)
- Demonstrable revenue and profitability (or strong cash flow)
- Owner credit profile typically 650+ for competitive pricing
- Clear use of funds (growth, refinancing, expansion, etc.)
- Up-to-date tax filings and no unresolved arrears