How to get a $50,000 business loan

Where to get a $50,000 small business loan

You have lots of choices when you need a $50,000 business loan, as most lenders offer loans of this size. But the best loan for your business depends on your company’s needs. Comparing providers before you apply helps ensure you get a competitive deal.

• Online lenders can get your business $50,000 as soon as the next business day and tend to have lower credit and time-in-business requirements. Learn more about private business loans.
• Banks with small business programs sometimes also offer $50,000 business loans, but many prefer to work with large and midsize businesses.
• Credit unions with business loan programs often offer $50,000—but you need to become a member to qualify.

Banks and credit unions offer in-house financing and the government-backed Canada Small Business Financing Program (CSBFP).

What is the monthly $50,000 business loan payment?

A monthly payment on a $50,000 loan depends on your interest rate and loan term. Below are sample monthly payment estimates based on the following common interest rates and repayment periods:

These figures are estimates and are based on a fixed rate. Your actual monthly payment will depend on your lender and loan agreement.

Eligibility requirements for a $50,000 business loan

Eligibility requirements vary depending on the lender, but some common factors include:

• Business age. Most lenders prefer businesses that have been operating for at least 24 months. If your business is younger, check out alternative lenders like Journey Capital, whose minimum time in business starts at 6 months.
• Revenue: You’ll usually need to show consistent monthly or annual revenue, typically $10,000 per month or $120,000 per year.
• Credit score: For loans through a bank, a credit score of 660+ is ideal. Online lenders can accept lower credit scores.
• Debt-to-income ratio: Lenders will look at how much debt your business is already carrying to decide whether to approve your loan.

Documents to prepare

Before applying for your business loan, gather these documents to speed up the process:

• Government-issued ID (such as a Canadian passport, driver’s licence, or permanent resident card)
• Business registration or incorporation documents
• Bank statements
• Business financial statements (profit and loss statement, balance sheet)
• Business plan
• Tax returns (business and personal)
• Proof of revenue

Steps to apply

Ready to apply for a business loan? Here’s a step-by-step guide you can follow to streamline the process:

1. Determine your loan type: Assess your business needs and choose the type of business loan you want to apply for, such as a term loan, line of credit or equipment lease.
2. Check your eligibility: Determine whether you’re eligible for a loan from a bank or credit union. If not, an online lender may suit your needs better.
3. Compare lenders: Create a list of loans you’re eligible for and compare the different lenders’ terms, interest rates, fees and repayment conditions. Learn more about business loan rates.
4. Gather your documents: Gather the documents listed above and make copies if necessary.
5. Apply online or in person: Depending on the lender, you can complete the application form online or schedule an appointment to apply in person.
6. Wait for approval: The approval process can take anywhere from a few hours to several weeks, depending on the lender and loan type.
7. Review and sign your loan agreement: Carefully read through the loan agreement, making sure you understand the repayment terms, fees and interest rates before signing.
8. Receive funds: Once approved and the agreement is signed, the funds should be disbursed to your business account within a few days.

Can you get a $50,000 startup loan?

You may be able to get a $50,000 startup loan through banks, credit unions and alternative lenders. But your business will need to be operating for at least 6 to 12 months and have at least $10,000 monthly revenue to qualify for a loan of this size.

If you need seed funding to get your business off the ground, a personal loan can also be a good choice. To qualify for competitive rates, you generally need to have a credit score of at least 660 and enough regular income to support payments on the loan.

Can you get a $50,000 business loan with bad credit?

If you have bad credit, you may not get approved for a $50,000 business loan by a financial institution, but you may get approved by an online lender. Online lenders of $50,000 bad credit business loans include Journey Capital, Advance Funds Network and Merchant Growth. Learn more about bad credit business loans.

Can you get a $50,000 business loan with no credit check?

It’ll be difficult to get a $50,000 business loan with no credit check. This is a large loan, and lenders will need to reduce the risk of a loan default by performing a credit check. Be wary of lenders advertising no credit check $50,000 business loans because this could be a scam.

Frequently asked questions

• Can I get a $50,000 government-backed loan?

  Yes, you can get a $50,000 loan backed by the Canada Small Business Financing Program, commonly known as a CSBFP loan. Startups and small businesses must have a gross turnover of $10 million or less to be eligible.

• Do I need collateral for a $50,000 business loan?

  In Canada, lenders will generally require a personal guarantee for a business loan. This means that if your business can't repay the loan, you're personally responsible for covering the debt. In that case, the lender can go after your personal assets—like your personal savings or property—to recover the money.

• How long does it take to get a $50,000 business loan in Canada?

  Online lenders can approve and fund business loans within 24 to 72 hours, while traditional banks may take several business days to weeks. The time can vary depending on the complexity of your application.

To make sure you get accurate and helpful information, this guide has been edited by Leanne Escobal as part of our fact-checking process.

Written by

Rebecca Low

Writer

Rebecca Low is a writer for Finder. She has contributed to a range of digital publications, including income.ca, Indeed, and Expatden, writing on topics like personal finance, career development, and travel. See full bio