Startup Business Financing: How to Fund a New Business in Canada
Starting a business requires capital, but most banks will not lend to businesses without a track record. Here are realistic funding options for Canadian startups.
Start an applicationWhy Banks Decline Startup Applications. Traditional banks want to see 2+ years of financial history, established revenue, and strong personal credit. Startups rarely have these, making bank financing nearly impossible in the first two years of operation.
Alternative Options for New Businesses. Equipment financing (the equipment itself secures the loan), microloans through community organizations, revenue-based financing (once you have 6+ months of revenue), and business lines of credit from alternative lenders.
When You Qualify for Alternative Lending. Most alternative lenders require at least 6 months of operating history and $15,000+ in monthly revenue. Once you hit these thresholds, you can access lines of credit, business loans, and equipment financing.
Building Toward Larger Funding. Start with a smaller facility — a $25K line of credit or $50K equipment loan — build a repayment track record, and scale your facility as your business grows. Voxen Capital grows with you.