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Business Loans in Calgary — Compare Rates, Terms, and Payments
Explore small business financing options across Calgary and estimate your payments with the calculator below. Compare typical rate ranges by product type, learn what lenders look for, and get answers to common questions so you can apply with confidence.
Calgary Business Loan Calculator
Estimate monthly, biweekly, or weekly payments. Defaults for Alberta use 5% GST when you choose to finance tax on equipment purchases.
Typical Rate Ranges for Calgary Business Financing
Illustrative ranges only. Compare personalized quotes from multiple lenders.
Product | Common APR or Cost | Typical Term | Notes |
---|---|---|---|
Term Loan (secured) | 7% – 12% | 1–5 years | Best rates with collateral and strong financials |
Term Loan (unsecured) | 10% – 24% | 1–3 years | Faster approvals, higher rates |
Equipment Financing | 6% – 14% | 2–7 years | Asset-backed; GST may be financed |
Business Line of Credit | 9% – 18% (variable) | Revolving | Pay interest on amounts used |
Invoice Financing | 1% – 3% per 30 days | Up to 90 days | Based on receivables quality |
Merchant Cash Advance | Factor 1.20 – 1.50 | 3–18 months | High cost; tied to card sales |
Example average costs by product (visual guide)
How Calgary Business Loans Work
Lenders evaluate time in business, revenue trends, profitability, debt obligations, industry risk, and personal credit. Secured loans use collateral to lower risk and cost; unsecured options trade convenience for higher rates. Alberta has a 5% GST and no provincial sales tax. If you finance equipment, you may choose to include GST in the financed amount.
What lenders look for
- Personal and business credit history, with on-time payments.
- Financial statements and bank statements showing cash flow coverage.
- Time in business, annual revenue, and profitability trajectory.
- Collateral value for secured options (equipment, vehicles, real assets).
- Clear use of funds and realistic plan for repayment.
Documents to have ready
- Government ID and proof of Calgary or Alberta address.
- Recent business bank statements and financials (P&L, balance sheet, cash flow).
- Business number and incorporation documents if incorporated.
- Voided cheque for automatic payments and account verification.
Tips to lower your cost
- Compare quotes and ask about secured options when possible.
- Pay down revolving debt to improve utilization before applying.
- Choose the shortest term your cash flow can comfortably support.
- Avoid stacking multiple advances that compound costs.
Calgary Business Loans — FAQ
What credit score do I need for a business loan in Calgary?
Requirements vary. Stronger credit and cash flow unlock better rates and longer terms. There are options for rebuilding credit with additional documentation or collateral.
Can startups qualify for funding?
Yes, but options are more limited. Lenders may look for personal credit strength, collateral, a detailed plan, and initial revenue or contracts.
How fast can I get funds?
Some online lenders provide decisions within hours and funding in one to three business days. Bank or secured options can take longer due to underwriting and appraisal.
What’s the difference between a term loan and a line of credit?
A term loan provides a lump sum with fixed payments. A line of credit lets you draw as needed and pay interest only on what you use, with a variable rate.
Do I need a personal guarantee?
Often yes, especially for small businesses. Secured loans may use business collateral and still require a guarantee depending on risk.
Can I repay early without penalties?
Policies differ. Ask about prepayment rights and whether interest is simple, amortized, or based on a fixed factor cost.
How does GST affect financing in Alberta?
Alberta’s GST is 5%. For equipment purchases you may choose to finance the GST in your loan; set the calculator’s tax field accordingly.
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