Qualifying for a business loan of $100,000 is possible, but you’ll need to meet the lender’s eligibility criteria, which usually includes a minimum credit score, annual revenue and number of months or years in business.onde
Many Canadian financial institutions such as banks, credit unions and online lenders offer $100,000 business loans. You may even qualify for a Canadian Small Business Financing Program (CSBFP) loan, which is primarily backed by the government and comes with favourable terms designed to support small- and medium-sized businesses.
There are online lenders in Canada that can offer $100,000 business loans. Online lenders have more flexible requirements and easier application processes than banks, but they tend to have higher interest rates. The eligibility requirements for a $100,000 business loan can vary among lenders.
Key features: Journey Capital offers fast, efficient financing. See your loan offers without hurting your credit score (Journey Capital will do a soft check). Apply in less than 10 minutes with your basic business information. Hear back within 1 business day, and choose your term, amount and payback schedule if approved.
How to apply: Provide your basic business information in a quick application and then discuss offers with a team member. Journey Capital may ask for 3 months of bank statements further into the process.
Minimum eligibility requirements:
- 6 months in business
Key features: Merchant Growth is an online lender that provides $100,000 business loans based on your sales. You can get fast funding within 24 hours.
How to apply: Provide your personal and business information. Connect your business bank account to speed up the approval.
Minimum eligibility requirements:
- Operating for at least 6 months
Key features: Loans Canada is not a direct lender but a broker partnered with many lenders to help you find a business loan. You can fill out its application to find your lender matches for free.
How to apply: Provide your basic personal and business information, then receive a phone call to talk about your offers.
Minimum eligibility requirements:
- Operating for at least 100 days
Key features: SharpShooter provides fast, flexible funding to small and medium businesses that don't qualify for bank loans. Rather than fixating on traditional financial metrics, SharpShooter will look at your business's overall health and potential when reviewing your application.
How to apply: Fill out a simple application, providing basic information about yourself and your business. Get pre-approval within minutes and then discuss offers with a team member.
Minimum eligibility requirements:
- Have a Canadian bank accountWith a small business loan from the BDC, you can get up to $100,000 online to fund any business expense. There are no application fees, and no personal assets are used to secure the loan (but you will have to provide a personal guarantee). Repayment terms are 5 years, and you can postpone capital payments for 6 months. There are no penalties for paying off your loan early. Eligibility requirements include:
Canada’s major financial institutions can offer $100,000 business loans to businesses that meet their requirements. They have stricter requirements and more complicated application processes than online lenders, but they can also offer better rates. If you can meet the banks’ eligibility criteria, then they are a strong choice. You will likely need to visit a branch or call in order to apply. Banks can offer different types of business loans, such as the CSBFP loan, term loans, business lines of credit, equipment financing and more.
Compare 15+ lenders, plus key factors to consider before applying
For a loan this size, you’ll need to meet stringent eligibility requirements. While requirements vary between loan providers, you stand a good chance of approval for $100,000 in financing if you can check off most of the boxes below:
Credit score requirements vary widely by lender. Some lenders may require at least a minimum of 660 – a “good” credit rating – while others may require you to have a “very good” to “excellent” rating of 725 or higher.
The higher your credit score, the more loan options available to you – and the better the rates and terms.
Major banks may offer loans of up to $1,000,000 for qualifying businesses, but you can also turn to the Canada Small Business Financing Program (CSBFP) to get this type of financing on competitive terms. Although each lender has its own process, these steps can serve as a general guide to finding the right loan option for your business:
Your loan repayments ultimately depend on the APR and loan term you find. APR is a representation of your loan’s interest rate and financing fees, expressed as a percentage. Your loan term is the time you have to repay your loan in full.
Online business term loans typically come with APRs that range from 5% to 29%. Term loans can go up to 7 years, but your typical $100,000 business loan comes with a term of around 3 to 5 years.
For a $100,000 loan with a 9% APR and a 5-year term, your business’s monthly repayments would be $2,075.84. You’d pay a total of $24,4550.13 in interest and fees over the life of the loan.
Let’s say that (hypothetical company) Thorn Tree Brewers wants to expand its production. Thorn Tree’s owner, Spencer, crunches the numbers to discover he needs a $100,000 loan to cover the costs of more barrels. Spencer compares several online lenders, narrowing his options to 3 providers. He applies to pre-qualify with all 3, learning the APR and terms he’d face with each.
| Lender | APR offered | Term | Est. monthly repayment | Est. total cost |
|---|---|---|---|---|
| Provider #1 | 30% | 1 year | $9,748.71 | $16,984.55 |
| Provider #2 | 24% | 3 years | $3,923.29 | $41,238.27 |
| Provider #3 | 18% | 3 years | $3,615.24 | $30,148.62 |
After reviewing the numbers, Spencer continues his application with provider #3. It might require paying more interest over the life of the loan than provider #1, but its monthly repayments are more in line with Spencer’s budget than the other options. And he’ll save more than $11,000 in interest and fees than if he chose provider #2.
If you have multiple loan or refinancing offers on the table and aren’t sure which one to choose, calculate the total cost of each loan option to decide which one will best meet your business’s financial needs:
$100,000 business loans are for businesses that have been operating for 1 or more years and earn a monthly revenue of at least $5,000. While good personal credit isn’t absolutely necessary, your options may be limited with a credit score that’s under 650.
Want to learn more? Head to our business loans guide.
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