Qualifying for small Business Loan | OnDeck

How to Qualify for A Small Business Loan in Canada

With all the different business loan options available today, qualifying for a loan is a possibility for almost every business owner – but it requires a more savvy approach to evaluating your options picking the loan that best suits you and your business’ situation. Lenders evaluate both your personal credit history and your business credit profile to determine your eligibility, but hopefully the following information will provide you with what you may need to prepare to apply for a business loan.

As you prepare to make a loan application, be prepared to answer questions about what you need the funds for and how you plan to make repayment. Any lender, including traditional banks and online lenders, will want to get a clear picture of your credit history, your business, and your business’ future plans. Preparation is key and you can stay one step ahead of the game by having all of the necessary documents and data at your fingertips. Every lender will have their own paperwork requirements, which you must complete to apply for a loan, and not all lenders require the same types of information, but there is some information that the majority of them will look for—including the following:

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Once you have collected all your documents and have this information at your fingertips, you’ll be in a better position to answer any questions a potential lender might have and quickly submit any information your lender might need to complete your application. Your lender will then make a decision on your loan application based on a review of all of the information. The timeline of your approval can take from a week to 90 days. According to the Government of Canada, credit conditions for businesses in Canada remained good by the end of 2015 with approval rates for debt financing at 88 percent. It can be more difficult for start-ups and small businesses to qualify for funding but if you’ve been in business for at least a year, have annual revenues of at least $100,000, and otherwise have a healthy business; OnDeck may have a solution for you.

References:
https://www.ic.gc.ca/eic/site/061.nsf/eng/03031.html
https://www.mbandt.com/lending/business-lending-process/5-cs-of-credit-business/#