Business financing should start with what your business needs to accomplish, not a one-size-fits-all product. Explore options for everyday operating costs, planned investments, customer orders and inventory purchases—and understand the differences before applying.
Business financing describes ways a company can obtain capital for operating expenses, purchases, growth or other business needs. A business loan typically involves borrowed money repaid under a loan agreement. Other financing arrangements may use revolving credit, a particular customer order or inventory as part of their structure. The best starting point is the use of funds, cash-flow timing, total cost and the obligations attached to the actual agreement—not just the name of the product.
Different financing needs call for different structures. These are the five categories BGC helps businesses in Canada explore through funding partners; availability and terms depend on the business and the specific provider.
Keep operations moving when expenses fall due before customer payments arrive. Explore financing for payroll, suppliers and other business cash-flow needs.
Learn moreFor businesses that need access to credit more than once, a revolving facility may allow eligible borrowers to draw, repay and potentially draw again under the agreement.
Learn moreFor a defined investment or financing need, a term loan provides an agreed principal amount with contractual repayment obligations.
Learn moreA confirmed customer order may create supplier and fulfillment costs before payment arrives. Explore financing tied to eligible order transactions.
Learn morePurchasing or replenishing stock can tie up operating cash. Explore inventory-related financing and the factors affecting stock eligibility and repayment.
Learn moreNot every option is a conventional loan, and not every structure is available to every applicant. Review the actual financing agreement before accepting an offer.
The purpose of the funding often matters more than the product name. Consider what creates the cash requirement, when money will be received and how repayment would fit the business's normal operations.
A business has work underway or outstanding customer invoices but still needs to cover regular expenses. Working capital financing or a line of credit may be worth comparing, depending on the expected repayment pattern.
A company has a defined project and wants to spread repayment over an agreed period. A business term loan may suit that structure if the costs and obligations remain manageable.
A confirmed buyer order may point toward purchase order financing, while buying stock for future sales may call for inventory financing or another operating-capital arrangement.
A term loan generally starts with a defined amount borrowed and a repayment arrangement set by contract. A revolving line of credit may provide repeated access up to an approved limit, subject to draws, fees, reviews and other conditions. Both can support business needs, but they work differently when expenses or customer payments recur.
Purchase order financing and inventory financing are more closely connected to the goods, orders or stock involved. They may require examination of suppliers, customers, inventory value, sales cycles or transaction documents. Depending on the specific agreement, these structures may not be conventional business loans.
Working capital financing is a broad description of a funding need rather than one single contractual structure. If the business needs money for daily operations, the question is which actual agreement offers affordable access to funds with obligations the business can meet.
We start by understanding the business, the intended use of funds and how the financing would be supported by cash flow or the underlying transaction. BGC helps identify potential financing routes and compare information received through funding partners. Each partner makes its own underwriting and approval decisions.
The information requested depends on the type of financing, the business and the provider. A funding partner may ask about:
These are examples, not a universal application checklist. Supplying information does not guarantee financing, and the funding partner determines what documentation and underwriting standards apply.
To see how lenders weigh these details before you apply, including what a bank decline means for other options, read our guide to business financing eligibility.
Two offers for the same requested amount can create very different obligations. Compare the total amount repayable, the timing and frequency of payments, interest or other financing charges, fees, security requirements, guarantees and what happens if cash arrives later than expected.
Ask whether rates or payments can change, whether early repayment affects the cost, whether ongoing reporting is required and what rights the funding provider has if the business misses a payment. A lower advertised payment or a larger available amount does not, by itself, make financing a better fit.
A suitable structure should be evaluated against the business's actual capacity to meet its obligations. Review the complete financing documents and obtain independent professional advice where needed before signing.
A contractor may face a gap between buying materials and receiving a progress payment. A distributor may need to pay suppliers before customers settle invoices. A retailer may have to stock products ahead of a seasonal sales period. These are different operating patterns, and the financing structure should be considered in that context. BGC reviews requests from businesses across a broad range of sectors, subject to funding-partner criteria and applicable exclusions.
Explore IndustriesA business loan usually refers to borrowed funds that must be repaid under a loan contract. Business financing is broader: it can include term loans, lines of credit and arrangements connected to inventory or customer orders. The legal structure and repayment obligations are determined by the agreement, not the marketing label.
There is no single best option for every business. A predictable one-time expense may suit a different structure from repeating cash-flow gaps or a confirmed customer order. Start with the purpose, timing, full cost, repayment ability and any collateral or guarantee requirements.
Potentially. Some financing structures are intended to help cover operating costs while a business waits for revenue or customer payments. The key is whether repayment obligations remain manageable and whether the funding partner accepts the specific use of funds.
Funding partners may consider revenue, cash flow, existing debt, business history, the intended use of funds, available security and relevant supporting documents. Requirements differ by provider and product. Completing an application does not guarantee an approval or a particular offer.
No single rule applies across every type of financing. Some agreements may require business assets, personal guarantees or other forms of security; others operate differently. The borrower should review the exact legal obligations for any financing offer.
Ask for the full amount repayable, all fees and charges, payment frequency and the consequences of late or early repayment. If financing offers use different rate or fee structures, comparing only a headline rate may be misleading. Consider cash-flow impact alongside total cost.
BGC helps businesses explore financing through third-party funding partners. BGC does not present itself as the direct lender, and any financing offer, underwriting decision and agreement come from the applicable provider. The actual role of each party should be clear before you proceed.
Tell us what your business needs, what you plan to use the funds for and the amount you're considering. We'll help you review potential financing routes and next steps through funding partners.
