As a woman entrepreneur, there are a number of financing options that you can take advantage of to grow your small business in Canada. These can include private loans, federal government loans, regional funding options and grants. Compare some of the best business loans for women entrepreneurs in Canada to find the one that best suits your needs.
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Private business loans for women
You can apply for business loans for women with the following private sector lenders. You can also use this handy loan search tool developed by the Canadian government to find other loans and grants that you may be eligible for.
Futurpreneur Canada: Business loan for women under the age of 40
Futurpreneur Canada makes it easier for aspiring young women to secure financing for their businesses. It partners with the Business Development Bank of Canada (BDC) to offer collateral-free loans at better interest rates than most banks. Terms typically last up to 5 years but you can only qualify for financing if you’re under the age of 40.
How much can I borrow? Borrow up to $20,000 (plus an additional $40,000 from BDC if needed).
How much will it cost? Interest rates for Futurpreneur are typically the CIBC prime rate plus 3%. You’ll also pay a one-time management fee of 1% when the loan is disbursed.
How to qualify? You must be a Canadian citizen or resident between 18 and 39 years old. You have to submit a full business plan, prove that you have training/education in a related industry and be able to use your business for full-time employment. You will also need to agree to regular mentorship and reporting.
Pros
Cons
Large loan amounts
No penalty for early repayment
Term lengths up to 5 years (interest-only payments in the first year)
Mentoring and business counselling
First-year payments only cover interest
Credit check is required to determine eligibility
Admin fees increase the total cost of your loan
Journey Capital Canada: Quick financing business loan for women
Journey Capital Canada provides fast and affordable loans to women-led businesses in Canada. You’ll have to repay the amount you borrow with fixed daily or weekly amounts, and your interest rates will range from 8% to 29%. The interest you’ll have to pay will depend on a number of factors like the state of your credit, how much you borrow and the length of your term.
How much can I borrow? You can borrow anywhere from $5,000 to $300,000 with terms lasting from 6 months to 18 months.
How much will it cost? You’ll pay interest rates between 8% and 29%, but you may be able to get lower rates if you have a really strong credit score.
How to qualify? You should be in business for at least 1 year as well as have $100,000 in gross annual revenue, a minimum credit score of 500 and at least 5 deposits to your business chequing account each month.
Quick financing (get cash in as little as 24 hours)
Large loan amounts
No collateral required to qualify
Several loan types
Less competitive interest rates than some other private loans
Minimum credit score of 600
Businesses less than 6 months old won’t qualify
SharpShooter Funding: For businesses underserved by banks
SharpShooter Funding offers business loan options for women, which are easier to qualify for than with the banks. Loan amounts can range from $1,000 to $300,000, with terms from a couple of months up to 5 years and interest rates starting at 5.49% for a 12-month term. Just be aware that you’ll need an annual business revenue of $49,992 to qualify for certain loans.
How much can I borrow? You can borrow between $1,000 and $300,000, with terms lasting up to 5 years.
How much will it cost? Interest rates range from 5.49% to 22.79%, depending on your credit score and the length of your term.
How to qualify? You need to have been in business for 12 months and have $49,992 in annual revenue for most loans. You will also need a credit score of 620+.
Pros
Cons
Large loan amounts
No collateral required to qualify
Terms lasting up to 5 years
High annual revenue requirements
Minimum credit score of 620
No funding for startups or businesses less than 1 year old
Driven: Business loan for women with fair credit
Driven offers business loans for women and other minorities with fair credit scores. Loans range from $5000 to $300,000, and you can withdraw and pay back continually from that amount during your loan term. These loans come with short terms (between 2 months and 2 years) and interest rates are fixed.
How much can I borrow? You can borrow between $5000 and $300,000, with terms of 2 - 24 months.
How much will it cost? Interest rates are fixed for the length of the loan, and depend on a number of factors, like your credit score.
How to qualify? You must have a Canada-based business that has been operating for at least 6 months with a revenue of $120,000 per year. You will also need a minimum credit score of at least 600.
Pros
Cons
Large loan amounts
No collateral required to qualify
Credit top-ups are available
Fair credit is accepted
Short terms (2 years or less)
High monthly sales needed to qualify
Businesses less than 3 months old aren’t eligible
Coralus: For zero-interest loans
Coralus (formerly SheEO) offers zero-interest loans to women-led ventures that meet specific criteria. The amount you can borrow will be an equal split of the amount of money collected in the pool of funds contributed from Active Activators. If your venture is selected, you can borrow the funds you need at a 0% interest rate over 5 years, repaid in in 20 equal installments.
How much can I borrow? Loan amounts are determined by the total pooled funds of contributing members, but will not exceed $100,000 per venture.
How much will it cost? You’ll get a 0% interest rate over a 5-year term, so the loan is essentially free.
How to qualify? Your company must be majority-led by a woman with annual recurring revenue between $50,000 and $2 million. Your business plan must revolve around creating a better world or contributing to the UN’s Sustainable Development Goals.
Pros
Cons
Zero interest on loans
Decent loan amounts
Terms lasting up to 5 years
Mentorship and networking opportunities
Competitive application
Long application process (up to 1 year)
Need to have a strong product and marketing campaign to win votes
Compare private business loans
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Government-sponsored business loans for women
The federal government is committed to closing the gender gap in business and offers a number of resources to women-owned businesses.
Canada Small Business Financing Program (CSBFP): Business loan for women needing a large amount
CSBFP loans are backed by a government guarantee where you can borrow up to $1,000,000 for a term loan. You can use this money to purchase or improve business assets such as land, buildings, equipment and leasehold agreements. There is also a line of credit option worth up to $150,000 you can use to fund day-to-day operations like payroll, inventory, professional fees or other expenses.
How much can I borrow? You can borrow Up to $1 million, with terms lasting up to 5 years.
How much will it cost? Interest rates will typically be the lender’s prime rate plus 3%, You’ll also pay a CSBFP registration fee worth 2% of your total loan amount.
How to qualify? To qualify, you’ll need to make under $10 million in revenue annually, operate a for-profit Canadian business and use the loan funds for approved purposes.
Pros
Cons
Large amounts (Up to $1 million) for a term loan and $150,000 for a line of credit
Reasonable interest rates
Less strict eligibility criteria than some other business loans
Not suitable for operating costs
Admin fees worth 2% of loan amount
Business Development Bank of Canada: Comprehensive business loan for women
BDC offers business funding that’s been specifically earmarked to support women entrepreneurs. For startups, it works with Futurpreneur Canada to top up your funding amounts if you need some extra cash. It also offers larger start-up financing for businesses in operation for 12 months or more and runs the Women in Technology Venture Fund if you want equity financing.
How much can I borrow? Up to $40,000 (in addition to $20,000 from Futurpreneur) or you can get up to $250,000 with a larger long-term BDC loan.
How much will it cost? Interest rates are the BDC floating base rate plus 1.65% for Futurpreneur loans. You’ll also pay a $50 processing fee when your loan is disbursed. Interest rates vary for start-up financing.
How to qualify? Be over the age of majority and have a startup less than 12 months old (for Futurpreneur loans) or a Canadian-owned business in operation for at least 12 months (for BDC start-up financing), show proof of a good credit score and a solid business plan.
Pros
Cons
Reasonable loan amounts
Pay off an additional 15% of your principal each year for no fee
Term lengths up to 5 years
Mentoring and expertise
First-year payments cover interest only
Long-term loans aren’t suitable for startups less than 12 months old
Export Development Canada: Business loan for large-scale traders
EDC sponsors the Inclusive Trade Investments Program to provide equity capital specifically designed to help Canadian women entrepreneurs. This program makes direct investments in women-owned and -led businesses that have strong potential to achieve significant trade and export growth.
How much can I borrow? There’s no amount specified for this program.
How much will it cost? This is an equity investment so you won’t need to repay EDC, but you’ll have to give up an equity share in your company to participate in the program.
How to qualify? Be a Canadian company founded or led by women, with commercial revenue growth accelerating towards $500,000 and already exporting or ready for export.
Pros
Cons
Equity capital specifically reserved for women in trade
Presumably large amounts
You’ll need to give up equity in your company
Requires revenue growth accelerating towards $500,000
No funding for startups or businesses less than 1 year old
Grants for women in business
There are a number of business grants for women that you may be interested in if you would rather get capital for your business without needing to worry about repayment:
Business requirements tend to vary based on what type of loan you’re interested in. That said, you generally need to meet the following criteria to get a standard loan:
Age of the business. You’ll usually need to have been operating for at least 6 months to 1 year for most business loans offered by online lenders and banks (although some online lenders will work with businesses that have been operating for a minimum of 100 days). If you’re looking for startup financing, you’ll need to turn to a lender specializing in it – or search for grants.
Revenue. Your business will need to bring in a minimum amount of revenue each month or year in order to be eligible for a loan. Revenue requirements can range from as low as $5,000 a month to as high as $100,000 a year.
Credit score. Most lenders will require that you meet a minimum personal credit score requirement in order to be eligible for a business loan. While many lenders will expect you to have a fair to good credit rating of around 650, some will work with borrowers that have scores as low as 450.
If you don’t meet the eligibility criteria for a loan, you still have options. You might want to look into microlenders, Community Development Financial Institutions or online lenders. Just be aware that your company may need to be majority-owned by women to apply for a business loan designed for women entrepreneurs.
What information do I need to apply for a business loan for women?
Different lenders will require different documentation, but you’ll typically need a basic level of information to apply across the board various types of business loans and grants for women. Here’s a breakdown of what you might be asked to submit when filling out your application:
Business information
Business tax returns
Business bank statements
Lease agreements if you operate out of a storefront
Proof of business ownership
Business asset transactions
Business plan
Personal information
Personal tax returns
Social Insurance Number
Contact information and mailing address
Proof of residency
Personal credit score
How to apply for a business loan for women
You can follow the steps below if you’re looking to apply for a small business loan for women in Canada:
Compare your options. You’ll want to compare at least 3 to 4 providers – including any who specialize in offering women-focused funding – to find the best loan for you based on loan amount, interest rates, fees and eligibility criteria.
Prequalify for your loan. Apply to pre-qualify for the loan of your choice by filling out an online application and providing the necessary documentation.
Complete an interview. In some cases, you may be required to go through an interview process to determine your eligibility for a loan.
Wait for a decision. You’ll usually need to wait for a decision on your loan application and provide any follow-up documentation that’s requested by your lender.
Negotiate the terms of your loan. You’ll want to work with your lending institution to negotiate the repayment terms of your loan and the interest rates that you’ll have to pay.
Bottom line
There are a number of financing options available to women entrepreneurs in Canada. These include federal programs as well as private and not-for-profit lenders looking to close the gender gap. Find out more about what types of business loans for women you might want to take out, and apply for financing today to get the money you need to grow your business.
Frequently asked questions about business loans for women
No, they don't. This is because lenders aren't allowed to discriminate based on gender, and most lenders make every effort to remove barriers for women to access financing.
You can, though your options will likely be more limited. This is because lenders will typically consider your personal credit score rather than your business credit when making your loan decision. For this reason, you might want to consider getting a cosigner or backing your loan with collateral to increase your chances of qualifying for a competitive rate.
How much you can borrow varies by lender. Most business lenders in Canada offer loans worth up to $300,000. Often your maximum amount will be based on your provider's lending limits, how much your business can afford and your personal credit score.
There are several different ways to start a business in Canada if you're willing to put in the leg work. These include applying for venture funding, working with an incubator or tapping into programs for women entrepreneurs.
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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