$100,000 business loans

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

Where to get a $100,000 business loan in Canada

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.

Canada Small Business Financing Program (CSBFP)

You can apply for these loans through a chartered bank, credit union or a caisse populaire. They are at least 75% backed by the Government of Canada. Your business must make under $10 million in revenue annually to be eligible for this program. You can access up to $1,000,000 in funding, but you’ll need to be a for-profit business, use the loan funds for specific approved purposes, earn less than $10 million in revenue annually and operate a business in Canada.

Online lenders

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.

Compare providers of $100,000 business loans

Journey Capital

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
- Minimum $100,000 annual gross revenue
- 600+ credit score

Merchant Growth

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
- Canadian based business
- 550+ credit score
- $10,000 in monthly sales

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Loans Canada

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
- Operating Canadian Business Bank Account
- Over $10,000 in monthly sales ($120,000/year)

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SharpShooter Funding

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 account
- Place of business located in a Canadian province/territory
- In business for at least 100 days
- Show a minimum of $4,166 in monthly deposits ($49,992/year)
- No minimum required credit score

BDC small business loan

With 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:

The BDC offers a competitive rate on small business loans. The interest rate is normally the BDC’s floating base rate of 4.55% plus an interest percentage based on your personal and business information. (The interest rate is subject to change without notice).

Banks and credit unions

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

What do I need to get a $100,000 business loan?

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:

• Annual revenue of at least $5,000 a month. Some lenders will require that you earn at least $5,000 a month, while others will require you bring in at least $100,000 a year. You’ll want to prove that you bring in enough money to comfortably afford the monthly repayments on a $100,000 loan.
• At least 1 year in business. Typically the longer you’re in business, the better. Many lenders want to see at least 1 to 2 years in business for loans as large as $100,000.
• Good personal credit. Though it’s possible to find financing with a lower credit score, you’ll find more competitive rates with a score of 650 or higher. Business loan lenders usually check your personal credit score – instead of your business credit score – to determine whether you’ll be approved or not.
• Consistent cash flow. Your business must prove that money comes in consistently enough that you’ll be able to comfortably afford your monthly loan payments.

What credit score do I need?

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.

Steps to get a $100,000 business loan

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:

1. Compare lenders. Your first step should be to compare business loan lenders. Each lender has its own requirements that can make the difference between approval and rejection.
2. Prepare financial documents. Lenders want to see your business plan, annual revenue projections, bank statements, tax documents and other information that demonstrates your business’s ability to repay a loan.
3. Speak with a financial advisor. Loop a financial advisor into your plan for a $100,000 business loan to ensure your business can afford it and develop a plan to repay it.
4. Apply for pre-approval. This allows you to see your loan’s potential terms before your personal or business credit is officially checked. Not all lenders offer pre-approval, but if it’s available, take advantage of it.
5. Review and sign the loan contract. If approved, review your loan contract with your partners and financial advisor to ensure the terms are beneficial for your business.

How much does it cost to repay a $100,000 business loan?

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.

Example: Thorn Tree Brewers buys new barrels

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.

Business loan calculator

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:

• How to use this business loan calculator

  To determine how much your business loan will cost you, simply fill out the following fields in the calculator:

  1. Loan term and amount. Select how long you need to repay the loan and enter the amount you intend to borrow.
  2. Bank name. Enter the names of your lenders.
  3. Fixed rate and period. If your loan comes with a special introductory fixed rate, enter the rate and how long the intro period lasts.
  4. Ongoing rate. Enter the ongoing rate you’ll pay for your loan here.
  5. Upfront fees. If your loan has an origination or application fee, add it here.
  6. Fees. If the loan comes with any ongoing fees, you’ll need to add them here and select how often they’re charged.
  7. Prepayment penalty. If you’re charged a prepayment penalty for paying off your loan early, enter the amount here.
  8. Calculate. Click the Calculate button to see which lender costs less and each lender’s fixed, ongoing and total repayments.

  If a section in the calculator doesn’t apply to you, leave it blank. You can adjust the loan amount, term length and any other variables to help you get an accurate idea of how much you can borrow and what sorts of terms to look for when applying with different lenders.

Bottom line

$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.

Frequently asked questions

• Can I get a $100,000 business loan to start a business?

  You’ll likely have a hard time getting a $100,000 startup loan from a business lender. Most lenders require that you’ve been in business for at least 1 to 2 years. Instead, you might want to consider other options like startup loans, crowdfunding or financing from investors.

• Will my business credit score count?

  It depends on which lender you apply with, though it’s rare for lenders to consider your business credit score alone. Typically, lenders ask to see your personal credit score or a combination of both your personal and business scores.

• Can I get a $100,000 business loan with bad credit?

  It’s possible to find lenders that offer business loans to borrowers with bad credit – but you may be offered shorter terms and less competitive rates than borrowers that have good credit. This means your monthly repayments will be higher since you’d likely be offered a shorter loan term and a higher interest rate. To offset a poor credit score, your business will need to meet the other eligibility requirements such as minimum time in business and annual or monthly revenue requirements. Learn more about business loans for bad credit.