Scotiabank business loan review
Get the money you need to purchase fixed assets for your business with a fixed or variable rate loan from Scotiabank.
You may be able to borrow up to $50,000 to purchase real estate or fixed business assets as long as you meet certain criteria.
- Think about Scotiabank if you’d prefer to be backed by a Big Five Canadian bank and you’re looking to purchase fixed assets.
- Pick something else if you want to supplement your business cash flow or you have bad credit.
Scotiabank is one of Canada’s largest and most reputable banks. It serves more than 25 million customers around the world and offers a wide range of financial products and services to commercial enterprises across Canada. This includes a range of fixed and variable interest rate loans designed to meet the needs of small businesses.
For these loans, you can borrow up to $50,000 which you’ll have to repay on a consistent payment schedule. You may be able to qualify for a repayment term as long as 10 years (or 5 years with 20-year amortization for real estate).
First, do I qualify?
You’ll need to meet certain requirements to be eligible for a Scotiabank business loan, though there are no specific criteria listed on the Scotiabank website. For example, you’ll likely need to have a good credit score. You may also need to show that you can afford the loan and have the necessary revenue coming in to make your monthly payments.
You’ll also typically have to meet additional criteria based on how much you want to borrow as well as what type of asset you’re looking to purchase. For example, you may need to meet different requirements to purchase real estate than you will to purchase business assets. You should speak with a Scotiabank adviser to find out more about what you’ll need to qualify.
What is a Scotiabank business loan
Scotiabank business loan are installment-based loans that you can use to purchase fixed assets. These loans may be backed by Scotiabank or the Canadian government, depending on what type of financing you need.
Scotiabank small business loans
Scotiabank offers fixed and variable rate loans that can be used to purchase fixed assets such as business equipment or real estate. Most of these loans cap out at 10 years, though you can renew your term multiple times to pay for commercial real estate.
You can use your loan to finance future purchases or assets you’ve bought within six months from the loan application date. You may also be able to pay a little bit more to qualify for Scotiabank small business loan protection, which is a form of insurance that protects your payments.
Canada Small Business Financing Program (CSBFP) Loan
The Canada Small Business Financing Program (CSBFP) Loan is backed by the Canadian government and lets you borrow money to start or grow your business. This type of loan lets you borrow 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 usually have to personally guarantee a portion of the amount you borrow, but you may be able to qualify for more than you would normally. This is because there’s less risk involved for Scotiabank since the government agrees to pay back the majority of your loan if you can’t make your payments for some reason.
What makes a Scotiabank business loan unique?
Scotiabank small business loans are unique because you can take them out for much larger amounts than what many other lenders offer. You may be able to borrow up to $50,000 to purchase real estate or fixed business assets as long as you meet certain criteria.
These loans are also unique because you can apply for them online as long as you need less than $50,000. This type of online service isn’t offered by any of Canada’s other Big Five banks.
What are the benefits of a Scotiabank business loan?
- Online application. You can apply for as much as $50,000 by filling out an online application, which is not a service that’s offered by other big banks.
- Fixed or variable interest rates. You’ll have the flexibility to choose the interest rate that makes the most sense for your personal budget.
- High amounts. You may be able to qualify for as much as $50,000, depending on your business history and financial situation.
- Long terms. You may be able to qualify for a repayment term as long as 10 years (or 5 years with 20-year amortization for real estate).
- Convenient service. You can go into one of thousands of Scotiabank branches across the country to speak to an adviser directly about your loan.
- Other financing options. You may be able to qualify for other forms of financing such as a line of credit or overdraft protection if you’re not sure about a business loan.
What to watch out for
- Financing only applies to fixed assets. You won’t be able to use the money you borrow to supplement your cash flow or consolidate your debt.
- Interest rates aren’t listed online. You won’t find out what type of interest rate you’ll get until you fill out your online application or speak to an adviser.
- Your loan must be secured by an asset. Your loan will be secured by the asset you purchase, which means you’ll have to forfeit that asset if you can’t make your payments.
- Bad credit not accepted. You likely won’t be accepted if you have bad credit unless you can get a guarantor or you secure your loan with a personal asset.
- No options for prepayment. There are no options for making early payments on your loan that are outlined on the Scotiabank website.
- Strict eligibility criteria. You’ll typically need to meet fairly stringent criteria to qualify for a Scotiabank business loan.
Compare other business loans
How much will my loan cost me?
The interest rates and fees you’ll pay for your loan aren’t disclosed on Scotiabank website. This is likely because of how variable these rates can be, depending on a number of personal factors that are unique to your own business and financial situation.
These can include how long you’ve been in business, how much revenue you pull in each year, what your personal credit score looks like, what type of loan you’re interested in taking out and what type of interest rate you choose.
You’ll typically have to pay fees to get a Scotiabank business loan up and running. These aren’t disclosed on the company website, but are worth asking about before you sign onto a loan contract. For this reason, you may want to book an appointment with a Scotiabank adviser to get a better understanding about any extra costs that may be associated with your loan.
How do I apply?
If you’re interested in applying for a Scotiabank business loan, you can apply online if you meet the eligibility criteria outlined below. If you want to borrow more than $15,000, you’ll need to book an appointment to speak to a Scotiabank adviser in person. They will review your eligibility and help you fill out your application if they think that you qualify.
What are the eligibility criteria to apply online?
In order to apply for a business loan online, you’ll need to meet certain criteria:
- Your business must be a for profit and it must operate in Canada
- You must have owned the business for two years or more and you have to be the sole owner or majority shareholder
- You must be a Canadian citizen or resident and you have to be 18 or over (or 19 in some provinces)
- You can’t have declared bankruptcy in the past six years
- You musn’t be applying for credit that will be used by someone other than yourself
Is Scotiabank legit?
Scotiabank is a top Canadian bank and it has a wealth of experience working with clients from all around the world. It provides many safeguards to protect your personal and financial information. You can be sure that you’ll get reasonable rates on your loan. As a big bank, Scotiabank also offers a level of convenience and protection that smaller independent providers may not be able to match.
I got the loan. Now what?
Now that you have your loan, you can use it to purchase the business assets you’ve outlined in your loan agreement. From there, you’ll need to start making repayments on your loan for a period of 3–10 years, depending on what length of term you’ve chosen.
You’ll typically pay your money back 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.