Working Capital Loan in Canada

Secure a working capital loan to smoothly manage daily business operations, ensuring steady cash flow for expenses like payroll and inventory, and maintain financial flexibility for growth opportunities.

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Borrow $10,000 to $300,000

Rates as low as 4.99%

Flexible Repayment Options

Funds within 48 hours

What is a working capital loan?

Our working capital loans are tailored to support the everyday financial needs of your business, offering a lifeline for managing seasonal fluctuations, covering operational expenses, or capitalizing on new business opportunities. Whether you’re aiming to maintain smooth operations or seize growth chances, our small business loans deliver the essential funding required. With a diverse range of options, including long-term and short-term business loans, secured, and unsecured loans, we ensure you find the perfect fit to keep your business operating efficiently.

What are the benefits of a working capital loan?

Prompt Funding: Access funds quickly to ensure uninterrupted business operations.
Flexible Repayment Options: We provide structured repayment plans, including micro repayments based on a percentage of your daily sales, tailored to your borrowing capacity.
Competitive Rates: Benefit from competitive interest rates that support your business’s financial health.
Streamlined Process: Our application process is straightforward, requiring minimal paperwork.
Professional Advice: Our team provides expert guidance tailored to your business needs.

Am I eligible for working capital loans?

Location: Your company must be located in Canada.
Lease: You should have a valid commercial lease.
Sales: Average monthly sales of at least $15,000.
Operational Duration: Your business should be in operation for a minimum of 6 months.

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Working Capital Loan Benefits

Enhanced Cash Flow Management

This infusion of cash helps businesses maintain smooth operations, especially during periods of reduced cash flow or seasonal fluctuations. It ensures that businesses can continue their day-to-day activities without interruption, even when customer payments are delayed or sales are inconsistent.

Opportunity for Growth and Expansion

With the financial flexibility that working capital loans offer, businesses can seize growth opportunities that they might otherwise miss. This could include taking advantage of bulk purchase discounts, investing in marketing campaigns, expanding product lines, or entering new markets.

No Need to Sacrifice Equity or Business Control

Unlike equity financing where a portion of business ownership is given up, working capital loans do not require equity dilution. Business owners retain full control over their operations and decision-making. This aspect is particularly appealing to small and medium-sized business owners who wish to maintain independence and full control of their business strategies and management.

How To Apply For Working Capital Loans

Apply for Loan: Start by submitting an application with us.
Assessment: We swiftly evaluate your application. Receive a response within 24-48 hours.
Decision: You'll receive a decision quickly, with transparent and understandable terms.
Funding: The funds are transferred directly to your business account for timely access.

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Working Capital Loan FAQ

What documentation is required for a working capital loan application?
To process your loan application, we’ll need several key documents: business financial statements and tax returns to understand your financial health; six months of bank statements for a recent financial overview; incorporation documents to verify your business’s legal status; and a description of the purpose of the loan.
Who should consider a working capital loan?
This loan is ideal for businesses that need to manage cash flow gaps due to seasonal sales fluctuations, slow-paying customers, or those looking to seize immediate growth opportunities.
How quickly can I access funds from a working capital loan?
Approval times can vary, but we aim to get your application processed within 48 hours. Many of our lenders offer quick decision-making processes, sometimes within a few business days.
What are the typical repayment terms for a working capital loan?
Repayment terms will vary depending on your business needs but are generally shorter than long-term loans, often ranging from a few months to a couple of years.
Do I need to provide collateral for a working capital loan?
Some working capital loans are unsecured and do not require collateral, while others may require a lien on business assets.
How does my business's credit history affect my eligibility for a working capital loan?
A strong credit history can improve your chances of approval and secure better terms, but there are options available for businesses with less-than-perfect credit.
Can startups apply for working capital loans?
Yes, startups can apply, although they need to meet specific criteria, such as a minimum period of 6 months in business or over $15,000 of monthly sales.
Are there any restrictions on how I can use the funds from a working capital loan?
Generally, the funds should be used for operational business expenses. This includes costs like advertising, rent, equipment maintenance, delivery services, employee salaries, and administration costs. Specific restrictions may vary depending on the lender.
How does a working capital loan impact my business credit?
Responsibly managing a working capital loan (e.g., making timely payments) can positively impact your business credit score. Conversely, late or missed payments can harm your credit.
Is a personal guarantee required for a working capital loan?
Some lenders may require a personal guarantee, especially if the loan is unsecured. This means the business owner is personally responsible for repayment if the business fails to pay.
What is the difference between a working capital loan and a line of credit?
A working capital loan is typically a lump sum provided upfront with a set repayment schedule, while a line of credit offers flexible access to funds up to a certain limit, which can be drawn upon as needed.
How do I apply for a working capital loan?
You can start by contacting us directly through our online application portal or by phone. Our team will guide you through the application process. If you have any questions, please contact us through our contact form.