The Bank Denied Your Small Business Loan, Now What?

There are other business loan options available in Canada for small businesses.

In our last post we explored the different kinds of small business loans in Canada. To recap briefly, there are 3 types of commercial lenders providing loans to businesses:

1. Canadian government
2. Commercial banks
3. Online lenders

The Scenario (a common one): the bank denied your application for a small business loan, so what are your options?

Online lenders like Evolocity are part of an emerging sector in the financial marketplace called FinTech.  Our growing propensity to have access to services online, and more importantly on our mobile devices has caused tangible shift across a multitude of industries, including finance. Couple that with increased lending restrictions faced by many small businesses and it’s not hard to see why Fintech lenders are gaining widespread momentum.

Does Evolocity provide small business loans in Canada?

Yes, we do. We offer both the traditional Small Business Loan as well as a Merchant Cash Advance program. The MCA is not really a loan but an advance against a business’ future debit and credit sales.

Unlike traditional lenders, we don’t require personal collateral when applying for a business loan; we also differ in a few other key areas that can make all the difference to our small business owners.

Time

For many small businesses seeking financing, time is critical. They don’t always have the luxury of waiting weeks from application to funding. Our technology platform was built around getting to know a business fast so we can offer merchants the best financing option for their business as quickly as possible.

Restrictions

Small businesses need to remain nimble and we’re sensitive to that, so we don’t impose any restrictions on what our business loan funds can be used for. Our merchants are free to use their capital for anything their business needs:

• Inventory
• Emergency expenses
• New equipment
• Location renovations
• Staffing
• Marketing & Advertising

Are you eligible for a small business loan with Evolocity?

Yes, if your small business meets the following criteria:

1. You own a Canadian based business

Evolocity is 100% Canadian owned and operated, and we choose to focus on helping other Canadian small businesses grow and thrive.

2. Your business has an active commercial lease

We only lend to businesses that have an active lease. That means your business must have a physical “brick and mortar” location. We do not lend to online only or home based businesses.

3. You have been in business for at least 12 months

We require that you have at least 12 months of sales under your belt before qualifying for lending. A year gives us a good indication of the overall health of your business and how much financing you can manage.

4. You make at least $15,000 in gross monthly sales

We don’t require any personal collateral to secure a small business loan so a minimum sales volume is necessary for us to extend credit to any business.

How do I apply for a small business loan with Evolocity?

Applying with Evolocity couldn’t be easier. It shouldn’t take more than a few minutes if you’re already prepared with the following information:

1. General business information: start date, address, legal business name, etc.
2. Commercial lease information
3. Business banking statements for the last 3 months
4. Owner information like: name, home address, birthdate, etc.

You can get your online business loan application started here or reach out to one of our financing experts 1-877-781-0148 and they’ll walk you through any questions you might have.