Featured on Smarter.Loans: Do You Need Good Credit to Get a Small Business Loan in Canada?

business owner accountant reviewing invoices while working on business finances

Commercial lenders assess your business’s risk and creditworthiness primarily based on your personal and—if you have one—business credit scores. With this in mind, you might think that you always need to have great credit to secure a business loan. Good news—there is no universal minimum credit score requirement for a business loan, which means you don’t necessarily need to have a stellar credit rating in order to get the funding you need.

Ultimately, how good your credit needs to be depends on the type of funding you’re seeking and the lender you’re working with. Government-funded and traditional lenders typically require high credit scores, while alternative lenders focus more on the health and potential of your business, with less emphasis on credit score.

To help you understand how your credit score can impact the small business funding options available to businesses in Canada, we took a deep dive into credit scores in our latest article for Smarter Loans, an online lending resource in Canada.

Read the full article to learn more about:

  • The difference between personal credit and business credit
  • Why credit scores matter
  • The difference between traditional lenders and alternative lenders
  • Small business loan options for businesses with low credit scores
Read the full article
Author:
With over 25 years’ experience in financial services, Pamela Kohl has worked closely with banks, alternative finance, and other fintech platforms to develop core banking services, as well as establish new card programs, lending programs, and global payments platforms. She has been nationally recognized for creating innovative solutions, leveraging new markets, and developing winning strategic partnerships. Currently, Pamela serves as Vice President of Marketing at Greenbox Capital. Pamela earned a B.A. from Marshall University, summa cum laude, and M.A. in International Economics from the University of Miami, where she graduated with Distinction.