Business Loans and Financing for Food and Grocery Stores

There is definitely no shortage of food and grocery stores in Canada. Today the food industry is being disrupted rapidly as people are becoming more conscious of what they are consuming. What this means is that for existing food and grocery stores there are a number of costs arising. Not only that but there is a unique opportunity at hand for those who aim to build new food and grocery stores. These businesses are able to tap into a food and grocery business loans in order to maximize their value to the community.

These loans are popularly utilized for taking care of expenses and whats even better is that through Smarter Loans, it’s never been easier to get approved and processed. Obtain a food and grocery store business loan entirely online without the hassle of delays or paperwork. Okay so once you’re determined that a food and grocery store business loan is suitable for you, how do you get started? Access a directory below which includes all of the providers for the most reputable food and grocery store business loans in Canada on a single page. From there, apply to the provider that will best serve you over the long term.

Compare terms, rates and offers in order to determine the absolute best fit for your specific needs. From there, click “Apply Now” to proceed with the provider that you’ve chosen. Alternatively, Smarter Loans can choose and assign a qualified loan company from Canada on your behalf if you pre-apply.

We can help connect you with the top business financing providers in Canada.

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Top Business Loans and Financing for Food and Grocery Stores Providers in Canada

Company
Amount
Interest Rate
Reviews
Terms
$3,000 - $500,000
Starting at 7.99%
3 - 12 months
$5,000 - $300,000
Starting at 8%
12 - 24 Months
$5000 - $500,000
Starting at 12.99%
6 - 18 Months
$4,000 - $300,000
5.49% - 22.79%
6 - 60 Months
$5,000 - $100,000
Starting at 29%
4 - 6 months
$5,000 - $100,000
Starting at 6.87%
3 - 18 Months
$5,000 - $300,000
Starting at 8.39%
6 - 12 Months

What are the Best Types of Business Loans for Grocery Stores?


Canada Small Business Financing Program Loans

The Canada Small Business Financing Program (CSBFP) partners with lenders to provide superior loans. The CSBFP shares the risk with the lenders they work with, enabling these lenders to offer you lower rates. If you qualify for a CSBFP loan, you can expect better rates.

Term Loans

Grocery store loans usually don’t need to be complicated. A business term loan can be used for any business purpose.

If you just need a little more money at any given moment, a grocery store term loan can provide you with the extra cash you need to get you through a major purchase or an unprofitable month.

Revolving Line of Credit

Revolving lines of credit are a great option for grocery store financing. They can be used for a wide variety of purposes. They carry higher interest rates than term loans on average. However, their terms last longer and offer you more control over your grocery store financing.

Equipment Loans

Equipment loans are a lot like term loans. The main difference is that they use the purchased equipment as collateral.

Merchant Cash Advance

Grocery stores typically receive many payments via credit cards. If your grocery store is credit-card friendly and you don’t want a normal business loan with regular repayments, an MCA might be the option you’re looking for. An MCA is just an advance that you pay for through portions of future credit card sales.

 

 

What are the main purposes for Grocery Store Loans?


Working Capital

Grocery stores have many day-to-day expenses that often require business financing.

Business Expansion

Expanding a grocery store is expensive. Grocery store loans can make the expansions your business needs possible.

Advertising & Marketing

Advertising expenses can provide a high return on investment. This is why many grocery store chains will use loans to pay for more publicity.

Purchase Produce & Inventory

Grocery store loans are often used to cover the consistent expenses of purchasing more groceries and other products.

Purchase / Upgrade Equipment

Equipment that is used at a grocery store may often need upgrades or replacements. These expenses are not always small, so grocery store loans are often taken for them.

Workforce & Payroll

Grocery store businesses are some of the largest employers. Making payroll and hiring new workers are critical expenses that can’t be neglected. So, business loans can be used to fill the financial gaps that workforce expenses leave.

Pay taxes

Taxes can bite into a grocery business’s cash flow. When this happens, it’s often necessary to take a loan to avoid the CRA’s punitive measures.

 

How do you Apply for a Small Business Loan for a Grocery Store?


The first step to getting any kind of loan is finding the right lender. Shop around and compare the rates offered on loans you qualify for. Then, send an application to the lender that best suits your needs.

After you send an application, the lender will assess your credit score and business financials. This assessment will be the basis of any offer they send you. Once they send a full offer, it’s up to you to accept or reject it. If you accept, they will send you the funds and the terms of the loan will be applied.

 

Frequently Asked Questions about Grocery Store Loans


How long does it take to get a loan for a grocery store?

The time it takes to get a grocery store loan will vary by lender. Banks may take one week to a few months to approve a loan. Online lenders will often be much faster. You can get a business loan in one day from some alternative lenders.

Can I get a business loan for a grocery store with bad credit?

Yes, you can get a grocery store loan with almost any credit score. Bad credit business lenders offer bad credit loans to a wide variety of borrowers.

How big a business loan can I get for a grocery store?

Lenders will offer you between $15,000 and $300,000 for a grocery store loan. The amount of money you get from a business lender will depend on:

  • The lender you go to
  • Your credit score
  • Your business financial information

How do you start a grocery store business in Canada?

The best way to start a grocery store in Canada is to jump aboard with a big franchise. This makes the many intricacies of running a grocery store so much easier.

If you want to start a new grocery store yourself, the application process is the same as it is with many other businesses.

What are Canada’s top grocery stores?

Some of the most popular grocery businesses in Canada are Loblaw, Sobeys, and Metro.

Types of Business Loans and Financing for Food and Grocery Stores offered:

  • Term Loans
  • Merchant Cash Advance
  • Business Line of Credit
  • Seasonal Promotion
  • Social Media Advertising
  • Purchasing New Inventory
  • Equipment Upgrades
  • Renovations

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