You may be able to borrow between $5,000 and $1 million to start or grow your company with a business loan. Find out more about how much business financing you can get with different types of loans and lenders, and compare several providers to find the best option for your needs.
How much business loan can I get?
Business lenders typically offer between $5,000 and $500,000, although the amount you’ll get usually depends on which lender you choose. The amount you can borrow also depends on personal factors such as your credit score, debt-to-income ratio and business revenue.
You’ll usually be able to access more money if you have an established business, a strong credit rating and a decent amount of disposable income. You’ll be able to borrow less if you’re just starting out or if you have a poor credit history.
How much of a business loan can I get with different types of lenders?
You may be able to qualify for the following amounts based on which lender you choose:
1. Bank loans
If you’re wondering how much of a bank loan you can get for a business, first understand that banks tend to offer the largest business loans out of any provider. Many banks offer business term loans starting at $5,000 and up to $1 million, although you may have to put up collateral such as your business equipment or real estate to qualify.
Providers include:
BMO, TD Bank, RBC, CIBC, Scotiabank, Canadian Western Bank and National Bank.
Credit unions usually offer smaller business loans typically between $5,000 and $100,000. These loans are usually more flexible than bank business loans and may require you to meet less strict eligibility criteria to qualify.
Providers include:
Meridian, Servus, Vancity, connectFirst, Conexus, First West, Steinbach, Alterna Savings and Coast Capital Savings.
Online lenders typically offer business financing as low as $5,000 and up to $300,000, though you may be able to find providers that offer more. Larger funding amounts typically need to be backed by collateral such as business equipment or real estate.
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How much of a business loan can I get with different types of loans?
There are a several types of business loans that will let you borrow varying amounts of money:
Canada Small Business Financing Program (CSBFP)
You can borrow up to $1 million if you get a CSBFP loan, which is mostly backed by the federal government and administered through banks. Up to $350,000 of a CSBFP loan can be used for equipment and leasehold improvements. Read our full guide to CSBFP loans to learn more about how it works and how to apply.
Business term loans
How much you can get with a business term loan is typically between $5,000 and $1 million, though many lenders will cap their loans at less than $500,000 (or even $50,000 to $100,000 in some cases). As with other types of business loans, larger amounts are typically only available with collateral.
Lines of credit
Many banks offer business lines of credit starting at $10,000, with the maximum limit defined by your business needs and financial position. Private lenders offer lines of credit that can go as high as $500,000 when secured by business assets. or as high as $50,000 when unsecured.
Merchant cash advances
A merchant cash advance gives you an advance on your future sales. Most lenders that offer merchant cash advances will let you borrow between $5,000 and $50,000. You’ll pay this money back using a predetermined portion of the credit card sales for your business each month.
Equipment and vehicle financing
You may be able to borrow between 80% and 100% of the value of the equipment or vehicles you want to purchase — usually up to $500,000 with a bank or online lender. You can also borrow up to $350,000 for equipment with a CSBFP loan. Learn more about equipment financing here.
Microloans
Business microloans run from around $500 to around $10,000 depending on the provider. These are meant to fund small startup costs and are usually available to entrepreneurs and bad credit borrowers.
Invoice factoring
Alternative business loans like invoice factoring might get you more funding than a term loan or line of credit because of the way they’re structured. Invoice factoring involves selling your unpaid invoices at a discount and can let you borrow thousands of dollars against the money you’re owed.
But beware: this tends to be much more expensive than your standard term loan and are generally best saved as a last resort.
Compare business loans from online lenders
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How much loan can I get to start a business?
If you want to get a loan to start a business, you’re more likely to qualify for a small business loan worth less than $10,000. That said, you may be able to qualify for up to $1 million with some loans (such as CSBFP loans) if you can present a viable business plan and have solid finances and credit score.
Ultimately, how much of a business loan you can get to start a business will depend on factors like your financial situation and credit score. A startup loan can be much more difficult to get than a normal business loan since you won’t have a proven track record or business revenue to use as collateral to secure your payments.
How much business loan can I get based on my personal situation?
The maximum loan amount a lender will give and the amount you can qualify for are often very different. Understand how the factors below can influence how much of a business loan you get:
Higher loan amount
Lower loan amount
Revenue
High amount of revenue (around $42,000+ per month)
Lower amount of revenue (around $10,000 per month)
Current debts
Lower debt
Higher debt
Collateral
Assets to use as collateral
No assets to secure your loan
Time in business
More established business (over 4 years)
Less established business (6 months to 4 years)
Credit score
Higher credit score (over 640)
Lower credit score (under 640)
Down payment
Larger down payment
Smaller down payment (if any)
Relationship with lender
Longer relationship with lender
Shorter relationship with lender
Personal guarantee
Willing to repay loan out of personal funds if business defaults
Not willing to repay loan out of personal funds
Should I borrow the full business loan amount I’m eligible to receive?
Just because you can borrow a certain amount for your business doesn’t mean you should go up to that limit. The more you borrow, the more you’ll pay in interest and fees – and the higher your monthly cost will be. Calculate exactly how much you need to finance your business and limit yourself to that amount.
6 ways to qualify for more business funding
From applying for government-backed financing to making a hefty down payment, here are a few strategies for how to qualify to get a larger business loan:
Put up collateral. You can often qualify to get a larger business loan if you put up collateral to secure your payments. Assets can include your house, vehicle or business equipment.
Don’t skip the down payment. You may be able to borrow more with a larger down payment since your lender will see that you have the ability to save money and commit to your business.
Pay off debts first. You could be eligible to get a larger business loan if you go into your loan agreement with a lower amount of other personal and business debt.
Improve your credit score. The higher your personal credit score, the less risk you pose to the lender since you’ve shown you can manage debt responsibly, which may mean getting a larger business loan.
Apply for a CSBFP loan. You can likely borrow more money with a CSBFP loan since these loans are backed by the federal government.
Wait until your business is more established. You may qualify to get a larger business loan once your business has been operational for a while and your revenue increases.
Bottom line
How much business lenders offer and how much you can borrow are 2 different numbers. But the one you might want to focus on is how much you actually need to borrow for your project to avoid taking on more debt than necessary.
FAQs about how much you can get for a business loan
Yes, it's possible to get a business loan with no money down. While you may have a higher chance of approval or be offered lower rates if you put money down, lenders don't generally require a down payment on business loans.
While it depends on the lender, the highest business loan you can get from banks typically maxes out at $1,000,000. The highest business loan you can get from other lenders is $100,000 from credit unions or $300,000 from online lenders.
It can be much more difficult to get a business loan for large amounts if you're just starting out. This is because most lenders will want to see at least a year's worth of revenue and a solid business performance before they will lend to you.
It depends on the type of business loan. Generally, you don't have to make a down payment on a general use term loan. Equipment and vehicle financing tend to require a down payment of around 20%, though it's not always required.
You may have a difficult time applying for a business loan if you have bad credit. Most lenders will only give you small amounts (less than $10,000) if you can't prove that you have a decent credit score. You'll usually have to pay higher interest rates on your business loan with bad credit.
It's not likely. Generally, you'll need to get good credit to get a business loan. You might want to look into other financing options that don't involve taking on debt, like equity investments or crowdfunding if you don't meet startup loan requirements.
Claire Horwood is a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee.
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