How credit scores work in Canada
Equifax and TransUnion calculate scores from 300 to 900 based on payment history, credit utilization, length of history, new inquiries, and credit mix. Lenders often check the owner's personal score, especially for newer businesses.
Typical minimums by lender
- Big banks: often 680+ plus collateral and 2+ years in business
- Credit unions: often 650+
- Online term loans and lines of credit: often 600+
- Merchant cash advances and revenue-based products: often 550+ or flexible
Soft pull vs. hard pull
A soft credit pull lets a lender preview your profile without affecting your score. Kacu uses a soft pull to prequalify, so you can see options risk-free.
Qualifying with lower credit
Show steady deposits, keep your average balance healthy, and consider products approved mainly on revenue such as working capital loans. Read our guide to improving your business credit.
Frequently asked questions
Can I get a business loan with a 550 credit score?
Yes, with some alternative lenders. Approval will depend heavily on your monthly revenue and bank account history.