What lenders look at when you apply for business financing.
Every funding partner sets its own criteria, but most look at the same core details about a business. Knowing them ahead of time helps you see where your request stands and what to prepare.
Who Better Growth Capital works with
Better Growth Capital works with Canadian businesses looking for financing between CAD $30,000 and $5,000,000. We help them explore working capital, lines of credit, term loans, purchase order financing and inventory financing through more than 50 lenders and funding partners.
We’re a business financing broker, so the decision on each application belongs to the lender reviewing it. There’s no single set of requirements that applies to every business. A request that doesn’t suit one lender may suit another, which is why the same details can lead to different answers depending on where the request goes.
What lenders may look at
Most lenders start with the same handful of questions about how your business earns money, what it already owes and how it would handle new payments.
- Revenue and bank activity. How much money moves through your business accounts and how steady it is from month to month.
- Operating history. How long the business has been running. A longer history gives a lender more to review, and each lender decides how much it wants to see.
- Cash flow. Whether the business can carry the new payments alongside the ones it already makes.
- Credit. Business credit and, for many smaller businesses, the owner’s personal credit. Lenders weigh credit differently.
- Existing debt. Current loans, lines of credit, advances and leases, including how often each one is paid.
- Purpose and amount. What the money is for and how much you’re asking for, which shape the type of financing that fits.
- Industry and security. Some lenders focus on particular industries, and some requests involve collateral or a personal guarantee.
Lenders look at these together, and the weight each one carries depends on the lender and the type of financing. BGC doesn’t publish minimum revenue, time-in-business or credit-score requirements because they vary from one lender to the next.
Documents you may be asked for
What you’re asked for depends on the lender, the amount and the type of financing. Common requests include:
- recent business bank statements;
- financial statements or year-end accounts;
- tax filings or notices of assessment;
- a list of current debts and their payment schedules;
- business registration and ownership details, and identification for the owners;
- for purchase order or inventory financing, the related customer orders, supplier quotes or inventory records.
Having these ready can shorten the review. Supplying them doesn’t establish eligibility or guarantee approval.
If your bank said no
Banks often work with tighter criteria and a narrower range of products than other lenders. A bank’s decision doesn’t decide what another lender will do, and it doesn’t guarantee approval elsewhere either.
If a bank has declined your business, mention it when you apply. It helps to know the reason the bank gave, if it gave one, and whether anything has changed since. We’ll review whether other options may be worth exploring with our funding partners.
How BGC’s review differs from a lender’s credit assessment
When you apply, someone at BGC reviews your request. We look at what you’re trying to fund, how much you need and how your business operates, and we may follow up with questions. BGC doesn’t run a credit bureau check.
If your request fits, we may share your complete application with selected funding partners, as explained in our Privacy Policy. Each funding partner then carries out its own credit assessment, which may include asking for your authorization to check credit, and decides whether to make an offer and on what terms. BGC doesn’t approve or decline financing.
What lenders review for each type of financing
The factors above apply broadly. Each product page explains what funding partners typically review for that specific type of financing.
- Working capital financing for operating costs and cash-flow gaps.
- Business lines of credit for recurring or uneven cash needs.
- Business term loans for defined investments and planned expenses.
- Purchase order financing tied to confirmed customer orders.
- Inventory financing for buying or carrying stock.
To compare all five side by side, see business loans and financing options.
Eligibility questions
Is there a minimum revenue or time in business?
BGC doesn’t set one. Each lender has its own criteria, so we review every request individually instead of screening it against a fixed number.
Can I apply if my business is new?
Yes. A shorter operating history can limit the options available, and each lender decides how much history it needs to see.
Will applying affect my credit?
BGC doesn’t run a credit bureau check when you apply. A funding partner may ask for your authorization to check credit as part of its own review.
How much can I apply for?
We review requests from CAD $30,000 to $5,000,000. The amount a lender offers depends on its own review of your business.
Do you work with businesses outside Canada?
No. We work with Canadian businesses only.
If my business meets these factors, will I be approved?
Not necessarily. These are the factors lenders commonly review, and they aren’t approval criteria. Each lender makes its own decision.
Ready to see what’s available?
Tell us about your business and what you need. Someone at BGC reviews every request and will contact you about next steps.