Traditional Canadian banks approve less than 50% of small business loan applications. For newer businesses, those with lower credit scores, or companies in industries deemed “high-risk,” the approval rate is even lower. Alternative financing fills this gap.
Merchant Cash Advances provide upfront capital in exchange for a percentage of future card sales. Best for restaurants, retail stores, salons, and any business with consistent card transactions, with funding from $5,000 to $500,000.
Invoice Factoring allows you to sell outstanding invoices for immediate cash. Instead of waiting 30, 60, or 90 days for clients to pay, you get up to 90% of the invoice value right away. Best for B2B businesses, construction companies, and professional services firms.
A Business Line of Credit lets you borrow up to a set limit, repay, and borrow again. You only pay interest on the amount drawn, making it flexible for seasonal fluctuations.
Equipment Financing uses the purchased equipment as collateral, often resulting in easier approvals and better rates. Best for construction, manufacturing, healthcare, and trucking.
Short-Term Business Loans from alternative lenders offer quicker approval and more flexible criteria than bank loans, with repayment periods of 3–18 months.
When choosing, consider speed of funding, repayment flexibility, total cost, and qualification criteria. CanLend Capital offers all five options, making it easy to find the right fit for your Canadian business.