RBC Business Loan Review
Depending on your business needs, RBC offers both small, short-term loans and longer and larger loans. Borrowing from one of the Big Five banks ensures that you'll get a competitive interest rate, different financing options and convenient customer service. However, interest rates and not availalbe online and you'll need to meet stricter eligibiltiy criteria than most non-conventional lenders.
Best for: Business owners looking to borrow from a Big Five bank and pay no prepayment fees.
- No prepayment fees
- Low minimum loan amounts
- Different financing options
- Interest rates not listed online
- No online application
RBC Business Loan is not currently available on Finder
Have you considered RBC Business Loan?
Fixed rate loans start at $10,000 and let you repay your loan according to a fixed monthly schedule, with payment amounts that never change. Variable rate loans start at $5,000, and you'll pay back a different amount each month based on what the prime rate is doing.
RBC (also known as the Royal Bank of Canada) is Canada’s largest multinational bank. It serves over 16 million clients and is recognized as an industry leader in the financial sector. It provides small business financing to millions of Canadians, with a focus on long-term and government-backed loans.
The loans that RBC offers come with fixed or variable interest rates. Fixed rate loans start at $10,000 while variable rate loans can start as low as $5,000. The terms for these loans tend to cap out at 7 years unless you’re purchasing real estate. There are no interest rates listed for RBC Business Loans online, so it’s difficult to say how RBC compares to other big banks on this front.
What types of business loans are available through RBC?
There are 2 main types of business loans available through RBC:
- Short-term and operating loans. These are suited for businesses with everyday borrowing needs – for example, if you want to cover short-term gaps in your cash flow, make large purchases or improvements to your business, or get easy access to operating funds.
- Mid-term and long-term loans. These are suited for businesses with significant financing needs – for example, if you want to buy equipment or property, expand your operations, or set up a new company or location.
What is Canada Small Business Financing Program (CSBFP) Loan?
With a Canada Small Business Financing Program (CSBFP) Loan, you can borrow money that’s secured by the Canadian government to grow your business. These loans may allow you to qualify for up to $1,000,000 if you want to purchase business real estate, or up to $350,000 for leasehold improvements and equipment.
You’ll face a 2% registration fee, plus the lender may charge any fees that they would typically charge for a conventional loan of the same amount. You may have to personally guarantee a portion of the amount you borrow. You’ll also only be eligible to apply if your business makes less than $10 million per year.
What makes RBC Business Loans unique?
RBC business loans are unique because they’re financed by a big Canadian bank. This means that there’s a certain level of convenience you’ll get when dealing with your loan in-person. You can simply book an appointment at the branch nearest you to sit down with an advisor.
As a big bank, RBC is also well-versed in dealing with unique financial situations that require more flexible financing options. This can include offering easy prepayment options and customized loan products that are designed to fit your business needs.
What are the benefits of an RBC Business Loan?
- Fixed or variable interest rates. You can choose a fixed or variable rate loan, depending on your preferences.
- Competitive rates. As a big bank, RBC can offer some of the lowest rates.
- Easy prepayment. You’ll be able to prepay your loan without penalty if you have a floating rate or a prepayment of up to 10% per year if you have a fixed rate.
- Low minimum amounts. You’ll be able to take out a variable-rate business loan for as little as $5,000 (which is low by industry standards).
- Convenient service. You can go into one of thousands of RBC branches to speak to an advisor directly about your loan.
- Many financing options. You’ll be able to finance your business using a business loan, line of credit or overdraft protection.
What to watch out for
- No online application. There’s no option to apply online so you’ll have to book an appointment at a branch to determine your eligibility.
- Interest rates aren’t listed online. There are no interest rates listed online which makes it difficult to compare quotes from several providers.
- Loan may need to be secured. You may need to put up your home, vehicle or business assets to secure financing.
- Bad credit not accepted. You likely won’t be accepted if you have bad credit unless you can secure your loan or get a guarantor.
Compare other business loans
How much will my loan cost me?
The cost of your loan will depend on a number of different factors. These can include your personal credit score, the term of your loan, the type of loan you take out and the type of interest rates you choose (fixed or variable).
RBC doesn’t list its interest rates on its website which can make it difficult to estimate how much you’ll have to pay over the course of your loan. Your best bet would be to book an appointment with an RBC advisor to find out more about your potential costs.
You’ll likely need to pay certain fees to set up a business loan with RBC. This is because there are overhead costs that the bank needs to pay to get your loan up and running (which are then passed on to you).
That said, these fees aren’t outlined transparently on the RBC website. You’ll likely want to book an appointment with an RBC advisor to get a better understanding about any extra costs that may be associated with your loan.
Do I qualify for an RBC Business Loan?
Though it’s not listed on the RBC website, you may need to meet certain requirements for your business to be eligible for an RBC Business Loan. Before you apply, you should make sure that you have a good to excellent credit score. It’s also important that your business be owned and operated in Canada.
RBC will also likely require you to show that you earn enough money to be able to pay your loan back on time. You may also need to meet additional eligibility based on the amount you plan to borrow and how you intend to use your funds. You should speak with an RBC advisor to find out more about what you’ll need to qualify.
How do I apply for an RBC Business Loan?
If you’re interested in applying for an RBC Business Loan, you’ll need to book an appointment to speak to an RBC advisor in person. At this appointment, you’ll usually be required to show documentation that proves your eligibility for a loan.
This can include paperwork that highlights how long you’ve been in business, how much your company makes, how you intend to spend the money you borrow and what your credit score looks like.
What happens after I apply?
RBC will review your application and make a decision. Since it doesn’t accept online applications, it may take multiple weeks for RBC to fully process your information.
Is RBC legit?
RBC is an industry leader in the banking industry and it has a wealth of experience dealing with clients from all around the world. As a client, you’ll benefit from well-established systems that allow you to open accounts or qualify for financing with as little hassle as possible. You can also rest assured that you’ll pay reasonable interest rates, and your personal data and accounts will be protected from fraudulent activity using advanced security measures.
I got the RBC Business Loan. Now what?
You can use your loan to purchase just about anything you need for your business. From there, you’ll have to start paying back your loan with monthly payments. You may also be eligible to prepay your loan early without penalty, depending on what type of loan you have.
Once you decide how long you want to take your loan out for, you’ll make your repayments using automatic withdrawals from your bank account. You should be sure to factor your interest rates and additional fees into your total amount to make sure you can budget appropriately when this time comes.
RBC is a strong contender if you’re looking for competitive interest rates and loan flexibility that only a major bank can offer. RBC doesn’t publish its rates online so you’ll need to fill out its application to find out what rates you qualify for. Before signing on the dotted line, be sure to compare business loans to find the right financing for your business.