Commercial loan

What's a commercial loan?

A commercial loan is a specialized type of loan designed for businesses with terms tailored to your situation and backed by your business assets or revenue.

What is it for?

Whether you need to purchase new equipment, expand to a larger location, boost your working capital, or seize a time-sensitive business opportunity - a commercial loan gives you the financial flexibility to grow your business on your terms.

How it works?

Once approved, you receive the loan amount and repay it in regular installments. You can choose between secured options using business assets as collateral for better rates, or unsecured options that don't require collateral but have higher rates.

Secured and unsecured loan: what's the difference?

Feature	Secured loan	Unsecured loan
Collateral required	Business assets or property needed as security	No collateral needed
Interest rates	Lower rates due to reduced risk	Higher rates due to increased risk
Maximum loan amount	Higher amounts available based on collateral value	Lower amounts available
Approval time	Longer, requires asset valuation and documentation	Faster, with fewer requirements
Repayment terms	Longer terms available, more flexible	Shorter terms, less flexible
Best for	Large investments, equipment purchases, real estate	Short-term working capital, smaller expenses
Risk level	Lower risk for borrower as rates are better	Higher risk due to higher payments

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Get to know the Canada Small Business Financing Program (CSBFP)

The Canada Small Business Financing Program (CSBFP) makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders.

Who is it for?

Businesses which are new and need support to start or expand operations; those that are established but need assistance managing cash flow after major investments; and those that are investing in equipment, property, leasehold improvements, or other growth initiatives.

Key benefits

1. Government-Backed Security. Your loan is guaranteed by the Government of Canada, making financing more accessible. 2. Finance Recent Business Investments. Eligible purchases made within 365 days prior to loan approval may qualify. 3. Flexible Repayment Options. Choose a repayment plan that suits your business with either a floating or a fixed rate.

Terms designed for your business

Funding is available for a wide range of asset classes with amortization terms up to 15 years, including real property / immovable assets, equipment purchases, leasehold improvements, intangible assets, and working capital.

Speak with a Business Advisor today

Grow your business with smart financing

Get expert business guidance

Connect with local advisors who understand your market and help make smarter financial decisions.

Keep full business control

Choose between secured and unsecured loan options without giving up equity in your business.

Maximize your growth

Take advantage of flexible financing to expand operations, upgrade equipment, or seize market opportunities.

Simple process,
great benefits

Please note!

Each application is unique with it’s own circumstances. For your individual case we advise you to speak to our Financial Services Officers

Connect with us

Talk to our Commercial Lending team. We’ll answer your questions and guide you through the process.

Explore options

We’ll help you assess the best strategies for reaching your commercial goals, offering different solutions that suits your case.

Submit necessary documents

Government-issued business registration document
Valid government ID for primary business owner
Recent financial statements (last 3-6 months)
Proof of business address
Tax identification number

Sign your loan

You can do it both at the branch and remotely if located in Ontario. Check locations.

Please note!

Each application is unique with it’s own circumstances. For your individual case we advise you to speak to our Financial Services Officers

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with BCU commercial loans

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Questions? We got answers!

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What are the repayment options for commercial loans?

Repayment options for commercial loans vary based on the loan type and terms. You may have the choice of fixed or variable interest rates, with repayment schedules that include monthly, bi-weekly, or customized payment plans. Flexible options like interest-only payments or lump-sum payments may also be available, depending on your agreement.

How do I know which type of loan is right for my business?

Choosing the right loan for your business depends on factors like your financial needs, repayment ability, and long-term goals. Term loans are great for large, one-time purchases, while lines of credit offer flexibility for ongoing expenses. If you’re unsure, our financial advisors can help you explore your options and find the best fit.

Can I use a commercial loan to refinance existing debt?

Yes, a commercial loan can be used to refinance existing business debt, helping you consolidate payments or secure better interest rates. Refinancing can improve cash flow and simplify your financial obligations. Our team can review your situation and help you find the best refinancing option.

What happens if I miss a loan payment?

If you miss a loan payment, you may be charged a late fee, and it could negatively affect your credit score. Interest will continue to accrue on the outstanding balance and become higher, and repeated missed payments may lead to further financial consequences. If you’re having trouble making payments, it’s best to turn to BCU and review your options as soon as possible.

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