Step 1: Decide what the money is for
Lenders match products to purposes. A one-time investment such as a renovation or an expansion usually fits a term business loan, while recurring gaps between paying suppliers and getting paid fit a business line of credit or a working capital loan.
Write down the exact amount you need, what it will pay for, and how the investment will generate the cash to repay it. That one paragraph becomes the backbone of your application.
Step 2: Check your eligibility
Banks commonly want two or more years in business, strong personal credit, and collateral. Alternative lenders are more flexible and focus on the health of your business bank account.
- Time in business: often 6+ months with alternative lenders, 2+ years with banks
- Monthly revenue: many online lenders start around $10,000 per month
- Credit: Canadian scores range from 300 to 900; 650+ opens more options
- A Canadian business bank account with consistent deposits
Step 3: Gather your documents
The fastest approvals happen when documents are ready before you apply. See our full business loan document checklist for the details.
- Last 3–6 months of business bank statements
- Government-issued photo ID for each owner with 20%+ ownership
- Business registration or articles of incorporation
- Recent financial statements or tax returns for larger requests
Step 4: Compare lenders and total cost
Compare the total cost of borrowing, not just the rate. Fees, repayment frequency, and prepayment terms can change what you actually pay. Our guide to business loan interest rates in Canada explains how to compare offers side by side.
Step 5: Apply and review your offer
With Kacu you can prequalify online in minutes. A funding specialist reviews your file, a decision is often ready within about 4 hours, and approved funds can arrive in as little as 24 hours. Read every term of the offer before signing, and ask questions about anything that is unclear.
Frequently asked questions
How long does it take to get a business loan in Canada?
Traditional banks often take 2–8 weeks. Online lenders like Kacu can deliver a decision in as little as 4 hours and funding in as little as 24 hours when documents are complete.
Can I get a business loan with no collateral?
Yes. Many working capital loans, lines of credit, and merchant cash advances are unsecured and are approved based on revenue and cash flow rather than assets.