Get a $250,000 business loan

You have many choices when you need a $250k business loan. Almost all business lenders offer loans in this amount, but to qualify, you typically need a credit score of at least 670 and have a business that’s at least 12 months old. Find out where you can apply for $250,000 business loans in Canada and how much the loan may cost you in monthly payments.

Compare $250,000 business loans

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Name	Product	Interest Rate	Loan Amount	Loan Term	Minimum Revenue	Minimum Time in Business	Loans Offered
OnDeck Business Loan		8.00% – 29.00%	$5,000 - $300,000	6 - 18 months	$100,000/year	6+ months	Secured Term, Line of Credit, Merchant Cash Advance	To be eligible, you must have been in business for at least 6 months with a minimum annual gross revenue of $100,000. OnDeck offers fast and simple financing. Apply in less than 10 minutes with your basic business information and see your loan offers without hurting your credit score. Get approved within 1 business day, and choose your term, amount and payback schedule once approved.	Go to site More Info	Compare	loading Fetching your data...
Merchant Growth Business Loan		12.99% - 39.99%	$5,000 - $500,000	3 - 12 months	$10,000 /month	6 months	Unsecured Term, Line of Credit, Merchant Cash Advance	To be eligible, you must have been in business for at least 6 months and have a minimum of $10,000 in monthly sales. Merchant Growth offers financing tailored to business needs. It specializes in providing capital based on future cash flows, but it also offers fixed solutions. Fill out an application within 5 minutes and get your funds within 24 hours.	Go to site More Info	Compare	loading Fetching your data...
Loans Canada Business Loan		6.60% - 29.00%	$4,000 - $500,000	3 - 60 months	over $10,000/month	100 days	Unsecured Term	To be eligible, you must have been in business for at least 100 days, have a Canadian business bank account and show a minimum of $10,000 in monthly deposits ($120,000/year). Loans Canada connects Canadian small business owners to lenders offering financing up to $500,000. Complete one simple online application and get matched with your loan options.	Go to site More Info	Compare	loading Fetching your data...

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Where to get a $250k business loan

You can get a $250,000 business loan from a bank, credit union, alternative lender or business loan broker.

Banks and credit unions

If your business is doing well, you can apply for a $250k business loan from a bank or credit union. Banks and credit unions have stricter eligibility requirements than alternative lenders, but they often have more competitive rates. To increase your chances of approval, you’ll need at least 12 to 24 months of positive revenue, industry experience, personal financial investments in your company, a good credit score and a detailed business plan.

Alternative lender

If you don’t qualify for a business loan from a bank or credit union, you can apply to an alternative lender. Alternative lenders have higher rates on average, but they have more flexible requirements. They are also faster at funding business loans. While banks and credit can take weeks to give approval and funding, alternative lenders usually take 1 to 2 business days. However, for large loans like $250,000, the process can take longer.

Business loan broker

A business loan broker like Swoop will take your business loan application to different lenders and come back to you with potential loan offers. If you’re new to business lending or your business is not established with well-documented revenue, a broker can help you find the right financing.

How to apply for a $250,000 business loan

The application process for a $250k business loan might be more involved than an application for smaller amounts of funding. While the application varies depending on the type of financing and the lender, you’ll usually follow these steps:

1. Decide on the type of financing your business needs. An equipment loan is the way to go if you need to buy an excavator or new office furniture. But a line of credit is more useful if you regularly need working capital.
2. Compare different types of lenders that offer the type of financing you need. If you have time, set up an appointment with a local bank and reach out to providers that offer small business loans.
3. Collect the documents you need to complete the application. For a $250,000 loan, you typically need business and personal tax returns and bank and financial statements at a minimum.
4. Complete the application by following the lender’s instructions. If you’re applying for a government-financed loan, this involves completing multiple forms — though you can hire a service to cut down on time and effort.
5. Get your collateral appraised if your lender requires it. This mainly applies to equipment loans and financing to stock up on inventory.
6. Review and sign your loan offer, paying attention to the rates, terms and payment due dates.

A $250,000 loan often takes a few days to a few weeks to process. Lenders prefer to be thorough when it comes to loans of this size — even online providers.

How much does a $250k business loan cost?

The cost of your $250k loan depends on the rates, fees and loan terms your business receives.

For example, a $250,000 loan with a 5% APR and a 10-year term would cost your business about $2,652 each month and a total of almost $68,197 in interest. Use our calculator to see how much a $250,000 business loan might cost at different rates and terms.

Bottom line

You can apply for a $250,000 business loan through a bank, credit union, alternative lender or business loan broker. Banks and credit unions are a good option if you have an established business with positive revenue, but if you need more flexible requirements, you can apply to an alternative lender or broker.

Compare our picks for the best business loans before you apply.

Frequently asked questions

• How much can I borrow for a business loan?

  How much you can borrow for a business loan depends on several factors, including your credit score, debt-to-income ratio, collateral and business revenue.

• What documents do I need to apply for a business loan?

  Document requirements will depend on the lender, but generally, you’ll need to provide business financial statements, business and personal tax returns, your business certificate or licence, and a copy of your business lease if you’re renting space or leasing equipment.