TD vs RBC vs BMO Business Loans Compared: Which Big Bank Is Right for Your Business

Executive Summary

TD, RBC, and BMO each offer competitive business term loans with rates ranging from Prime + 0.75% to Prime + 5.00% depending on your business profile. TD excels in relationship pricing for established businesses, RBC offers the strongest startup support with dedicated programs for newer companies, and BMO provides flexibility for businesses with strong collateral. All three banks require similar documentation and 2+ years in business for standard approval. The best choice depends on your existing banking relationships, industry, and growth trajectory, not marginal rate differences.

Why Canada’s Big Three Banks Dominate Business Lending (And Why That Matters For Your Decision)

When Canadian business owners seek term financing, TD Bank, Royal Bank of Canada, and Bank of Montreal consistently emerge as the primary options, and for good reason. These three institutions collectively control approximately 60-65% of Canadian commercial lending, according to the Bank of Canada’s Financial System Review. This market dominance isn’t accidental; it reflects over 150 years of accumulated expertise in assessing business risk and structuring appropriate financing.

The institutional credibility of these banks extends beyond market share. All three operate under the strict oversight of the Office of the Superintendent of Financial Institutions (OSFI) and maintain Common Equity Tier 1 ratios well above regulatory minimums, TD at 13.4%, RBC at 13.2%, and BMO at 13.0% as of Q3 2024. These capital buffers signal financial stability that protects both depositors and borrowers.

For business owners, this regulatory framework translates into predictable lending practices, standardized documentation requirements, and established dispute resolution processes. A 2023 survey by the Canadian Bankers Association found that 76% of Canadians express trust in their primary bank, with “reputation and stability” cited as the top factor in bank selection by 67% of SMB owners.

The practical implication is straightforward: choosing between TD, RBC, and BMO is not about avoiding a catastrophic mistake. Any of these institutions represents a fundamentally sound lending partner. The real question is which bank’s specific products, relationship benefits, and approval criteria best match your business profile.

Business Term Loan Rates Compared: TD Vs RBC Vs BMO

Understanding current rate structures requires looking beyond advertised minimums to the actual ranges most businesses encounter. All three banks operate from a Prime Rate, but their margins above Prime vary significantly based on risk assessment.

 These posted rates represent starting points for negotiation, not guaranteed offers. Actual rates depend on your credit profile, collateral position, time in business, and, critically, your existing relationship with the institution. Rate differences of 0.25-0.50% between banks often matter less than the relationship benefits and service quality you’ll experience over the loan term.

For secured loans backed by real estate or equipment, all three banks offer more competitive pricing. TD advertises rates as low as Prime + 0.50% for well-secured facilities, while BMO’s “Business Edge” program extends preferred rates to businesses demonstrating consistent revenue above $500,000 annually.

Understanding how each bank sets your rate

 TD Bank employs a tiered relationship pricing model combined with industry risk assessment. Credit scores are evaluated in bands: 680-719 receives standard pricing, 720-749 qualifies for preferred rates, and 750+ unlocks premium tier access. TD’s internal 5-tier industry risk classification can affect your rate by up to 1.50%, meaning a professional services firm and a restaurant with identical financials may receive meaningfully different offers.

RBC utilizes a 7-factor credit scoring model that weights your personal credit score at approximately 30% of the overall decision. The bank emphasizes debt service coverage ratio (DSCR), requiring a minimum of 1.20x for standard approval and 1.50x or higher for preferred rates. RBC’s relationship depth matters significantly, each additional RBC product can reduce your rate by 0.10-0.15%.

BMO assigns a “Business Risk Rating” from 1-10 that directly determines rate margins. Revenue consistency receives particular emphasis; businesses demonstrating less than 10% annual revenue variance typically qualify for better rates. Sector-specific adjustments favor healthcare and professional services over retail and hospitality by approximately 0.25-0.50%.

Loan Amounts And Terms: What Each Bank Will Actually Approve

Published loan maximums can mislead business owners about realistic approval expectations. While all three banks can accommodate loans from $5,000 to $5,000,000+, most SMB applications fall within narrower ranges based on revenue, collateral, and operating history.

TD Bank Business Term Loan Parameters:

•       Small Business Loan: $5,000 to $100,000 (streamlined approval)
•       Standard Term Loan: $25,000 to $500,000 (typical SMB range)
•       Commercial Term Loan: up to $5,000,000 (full underwriting required)
•       Average approved amount for Canadian SMBs: approximately $125,000
•       Available terms: 1, 2, 3, 4, 5, 7, and 10 years

RBC Business Term Loan Parameters:

•       Small Business Loan: $5,000 to $50,000 (simplified process)
•       Business Term Loan: $50,000 to $1,000,000 (standard underwriting)
•       Commercial Term Loan: $1,000,000 to $25,000,000+
•       Average SMB loan approval: approximately $150,000
•       Available terms: 1 to 10 years, with flexible amortization up to 15 years

BMO Business Term Loan Parameters:

•       Small Business Loan: $10,000 to $75,000 (simplified process)
•       Business Term Loan: $75,000 to $2,000,000
•       Commercial Loan: $2,000,000+ (dedicated commercial team)
•       Average SMB loan size: approximately $175,000
•       Available terms: 1 to 7 years unsecured, up to 10 years secured

Approval rates decline predictably as loan amounts increase. According to the Canadian Federation of Independent Business, loans under $50,000 see approximately 65-70% approval rates at Big Five banks, while loans over $500,000 drop to 35-40% approval. Businesses with 3+ years of operating history receive approved amounts approximately 40% higher than newer companies with similar financials.

Qualification Requirements: Who Gets Approved At TD, RBC, And BMO

All three banks share core eligibility requirements while differing in flexibility around specific criteria. Understanding these requirements helps you self-assess your approval likelihood before investing time in applications.

Standard Requirements Across All Three Banks:

• Minimum 2 years in business (officially stated; 3+ years preferred for best terms)
• Canadian incorporation or business registration
• Minimum personal credit score of guarantor: 650-660
• Debt service coverage ratio: minimum 1.15x to 1.20x
• Personal guarantee required for virtually all SMB loans under $500,000
• No recent bankruptcies within 7 years

Documentation Requirements:

1. 2 years of business financial statements (reviewed or audited preferred for loans over $250,000)
2. 2 years of business tax returns (T2 for corporations, T1 for sole proprietors)
3. Year-to-date interim financial statements
4. Personal net worth statement for all guarantors
5. Personal tax returns (2 years) for guarantors
6. Business plan for loans over $250,000 or newer businesses

Meeting minimum criteria does not guarantee approval. Banks assess applications holistically, weighing factors including industry outlook, competitive position, management experience, and economic conditions. The Canadian Federation of Independent Business reports that 95%+ of SMB loans under $500,000 require personal guarantees, regardless of business creditworthiness.

Which bank is most flexible for newer businesses?

RBC demonstrates the strongest commitment to startup and early-stage financing among the Big Three. The RBC Start-up Loan program extends up to $50,000 to businesses under 2 years old, requiring a personal credit score of 720+, detailed business plan, personal guarantee, and 25% equity injection. RBC’s partnership with Futurpreneur provides additional support for entrepreneurs aged 18-39.

BMO offers an “Emerging Business Term Loan” for companies with 1-2 years of operating history, with limits up to $100,000. Requirements include a 680+ personal credit score, comprehensive business plan, and 100% personal guarantee. BMO’s “Ready for Business” program combines mentorship with financing access.

TD does not offer dedicated startup term loans but provides alternative pathways. The TD Business Credit Card extends limits up to $50,000 without time-in-business requirements for applicants with strong personal credit. TD’s Small Business Line of Credit becomes available after 1 year of operation with appropriate personal guarantees. For startup term financing, TD typically refers applicants to BDC (Business Development Bank of Canada).

Application Process And Approval Timelines: What To Expect

Big bank lending processes follow established workflows that prioritize thorough assessment over speed. Understanding realistic timelines helps you plan financing needs appropriately.

TD Bank Application Process:

• Primary channel: In-branch with TD Business Banking Advisor (preferred for loans over $100,000)
• Online pre-qualification available through TD EasyWeb Business
• Small Business Loan (under $50,000): 5-10 business days from complete application to funding
• Standard Term Loan ($50,000-$500,000): 10-20 business days typical
• Complex applications requiring adjudication: 3-4 weeks or longer

RBC Application Process:

• Dedicated Business Banking Advisors assigned based on business size and industry
• Digital tools for document submission and application tracking
• Small Business Loan (under $50,000): 5-7 business days for straightforward applications
• Standard Term Loan: 10-15 business days typical
• RBC emphasizes relationship manager involvement throughout the process

BMO Application Process:

• Multiple channels: in-branch, phone (1-877-262-5907), or through existing relationship manager
• BMO’s online portal supports document upload and status tracking
• Small Business Loan: 5-10 business days
• Standard Term Loan: 10-20 business days
• BMO offers “payment holidays” of up to 3 months for qualified borrowers

For any big bank business loan, allow 2-4 weeks minimum from initial application to funding. Complex applications involving real estate collateral, multiple guarantors, or amounts exceeding $500,000 routinely require 4-6 weeks. Existing banking relationships can accelerate timelines by 20-30% due to pre-existing documentation and established credit history.

Fees, Penalties, And The True Cost Of Borrowing

Rate comparisons tell only part of the cost story. Fee structures, prepayment penalties, and ongoing charges significantly affect your total borrowing cost.

 Application and setup fees are often negotiable, particularly for businesses with strong profiles or existing relationships. Prepayment penalties deserve careful attention if early repayment is possible, RBC’s interest rate differential (IRD) calculation can result in higher penalties than the flat 3-month interest charges typical at TD and BMO.

Total Cost of Borrowing Example ($100,000 loan, 5-year term):

• TD at Prime + 2.00% (7.45%): approximately $19,800 in total interest
• RBC at Prime + 2.50% (7.95%): approximately $21,200 in total interest
• BMO at Prime + 2.25% (7.70%): approximately $20,500 in total interest

The fee transparency provided by major banks reduces surprise cost risk compared to alternative lenders, where origination fees, broker commissions, and administrative charges can add 2-5% to effective borrowing costs.

Beyond The Loan: Relationship Banking Benefits At Each Institution

Choosing a big bank extends beyond the immediate loan to encompass a broader business banking ecosystem. Each institution offers distinct advantages for businesses seeking long-term partnerships.

TD Bank Business Banking Ecosystem:

• TD Merchant Solutions for payment processing with competitive rates
• Cross-border banking capabilities through TD’s significant U.S. presence
• Payroll services integrated with business accounts
• TD Insurance products for business protection
• Dedicated Small Business Advisors for ongoing relationship management

RBC Business Banking Value-Adds:

• RBC Business Advice Centre with industry-specific guidance
• Networking events and business owner communities
• RBC Women in Business program with specialized support
• Cash management and treasury services for growing businesses
• International trade finance expertise

BMO Business Banking Relationship Perks:

• Dedicated relationship managers for businesses with $500K+ in deposits
• BMO SmartSteps program for business growth planning
• Cash management tools and sweep accounts
• Industry-specialized banking teams in key sectors
• Cross-selling discounts on multiple products

Existing personal banking relationships can unlock business lending advantages. A J.D. Power study found that businesses working with dedicated relationship managers report 23% higher satisfaction scores. The Canadian Federation of Independent Business reports that 64% of SMB owners would accept a slightly higher rate (0.25-0.50%) to work with a bank they perceive as more established and relationship-oriented.

Industry specialization: which bank knows your sector best?

TD Bank maintains specialized lending teams for healthcare, professional services, and franchising, with industry-specific risk assessment models that can expedite approval for businesses in these sectors.

RBC operates sector expertise centers covering agriculture, technology, healthcare, and manufacturing, with relationship managers who understand industry-specific metrics and financing needs.

BMO emphasizes industry verticals in commercial real estate, agriculture, and professional services, with dedicated relationship managers assigned based on sector alignment rather than geography alone.

Choosing a bank with demonstrated experience in your industry can smooth the lending process by reducing explanation time, enabling faster risk assessment, and connecting you with advisors who understand your business model.

How To Choose: A Decision Framework For Risk-averse Business Owners

The optimal choice among TD, RBC, and BMO depends on your specific priorities, existing relationships, and business profile. Use this framework to guide your decision:

• If lowest rate is your priority: Request personalized quotes from all three banks rather than relying on posted rates. Your actual offer will depend on factors no comparison can predict.
• If speed matters most: Apply at the bank where you have existing relationships. Pre-existing documentation and credit history can reduce approval timelines by 20-30%.
• If flexibility is key: Evaluate prepayment terms carefully. TD and BMO’s flat 3-month interest penalties offer more predictability than RBC’s IRD calculations.
• If long-term partnership matters: Consider which bank’s ecosystem best fits your growth trajectory. Cross-border needs favor TD; startup support favors RBC; relationship depth favors BMO.
• If approval confidence is paramount: Apply where your business profile best matches stated criteria. Newer businesses should prioritize RBC; established businesses with strong collateral should consider BMO.

Applying to 2-3 banks simultaneously is normal and expected. Multiple applications within a short window (typically 14-30 days) are treated as a single inquiry for credit scoring purposes. Comparing actual offers rather than advertised rates ensures you make an informed decision.

Quick comparison summary table

 All three banks represent legitimate choices backed by over 150 years of institutional expertise. The goal is finding the right fit for your specific situation, not identifying a hidden winner.

Next Steps: How To Get Started With Your Chosen Bank

Once you’ve identified your preferred institution, or decided to compare offers from multiple banks, follow these steps to initiate the process efficiently:

7. Gather standard documents: Compile 2 years of financial statements, tax returns, and personal financial information before contacting any bank. Having documentation ready accelerates every subsequent step.
8. Contact business banking teams: Request preliminary conversations with business banking advisors at your selected institutions. These initial consultations are free and help you understand specific requirements.
9. Ask about pre-qualification: Most banks offer preliminary assessments that indicate approval likelihood without triggering hard credit inquiries. Use these to gauge your standing before formal applications.
10. Prepare negotiation questions: Inquire about rate negotiation flexibility, fee waivers for new relationships, and relationship pricing for bundled services.
11. Set realistic timeline expectations: Allow 3-6 weeks from first contact to funding for standard term loans. Complex applications may require longer.

Choosing TD, RBC, or BMO means choosing institutional stability, regulatory oversight, and established lending practices. These banks have collectively extended billions in business credit over decades of operation. Trust the process, prepare thoroughly, and make your decision based on fit rather than fear.

Sources And Citations

1. Institutional Authority & Market Dominance

Big five bank market share in Canadian commercial lending

Combined Market Position

• TD, RBC, and BMO collectively hold approximately 60-65% of Canadian commercial lending market share [Bank of Canada Financial System Review, 2023]
• Canada’s Big Six banks (including Scotiabank, CIBC, National Bank) control over 90% of all banking assets in Canada [Canadian Bankers Association, 2024]
• RBC ranks as Canada’s largest bank by market capitalization at approximately CAD $180 billion [TSX Market Data, Q4 2024]
• TD Bank holds the position of second-largest Canadian bank with approximately CAD $150 billion market cap [TSX Market Data, Q4 2024]
• BMO ranks third among the Big Five with market capitalization of approximately CAD $90 billion [TSX Market Data, Q4 2024]

Regulatory Trust Signals

• All three banks are federally regulated by the Office of the Superintendent of Financial Institutions (OSFI) under the Bank Act [OSFI Registry, 2024]
• CDIC deposit insurance covers eligible deposits up to $100,000 per depositor, per insured category [Canada Deposit Insurance Corporation, 2024]
• OSFI requires Canadian banks to maintain a minimum Common Equity Tier 1 (CET1) ratio of 11.5% including buffers [OSFI Capital Adequacy Requirements, 2024]
• As of Q3 2024: TD CET1 ratio 13.4%, RBC CET1 ratio 13.2%, BMO CET1 ratio 13.0% [Bank Quarterly Reports, Q3 2024]

Institutional Longevity

• Bank of Montreal (BMO): Founded 1817 ,  207 years of continuous operation [BMO Corporate History]
• Royal Bank of Canada (RBC): Founded 1869 ,  155 years of continuous operation [RBC Corporate History]
• TD Bank: Founded 1855 (as Bank of Toronto, merged to form TD in 1955) ,  169 years [TD Corporate History]

User trust & authority perception data

Consumer Trust Rankings

• Canadian banks consistently rank among the most trusted financial institutions globally, with 76% of Canadians expressing trust in their primary bank [Canadian Bankers Association Survey, 2023, n=2,000]
• 82% of small business owners prefer borrowing from institutions where they have existing relationships [BDC Business Owner Survey, 2023, n=1,500]
• “Reputation and stability” cited as the #1 factor in bank selection by 67% of SMB owners [Canadian Federation of Independent Business, 2023, n=3,200]

Authority Heuristic Activation Points

• 71% of business owners feel “more confident” when a loan officer has specific industry experience [CFIB Lending Survey, 2023]
• Businesses that work with dedicated relationship managers report 23% higher satisfaction scores [J.D. Power Canada Small Business Banking Study, 2023]
• 64% of SMB owners indicate they would accept a slightly higher rate (0.25-0.50%) to work with a bank they perceive as “more established” [BDC Market Research, 2022]

2. Business Term Loan Rates Comparison 

Current posted rates (as ofJanuary)

TD Bank Business Term Loan Rates

• TD Business Term Loan: Prime + 1.00% to Prime + 4.00% depending on risk assessment [TD Business Banking, accessed January 2025]
• TD Prime Rate: 5.45% (as of January 2025) [TD Prime Rate History]
• Effective rate range: 6.45% to 9.45% for qualified borrowers
• TD Small Business Loan rates for amounts under $100,000: typically Prime + 2.00% to Prime + 4.50%
• Secured loans with real estate collateral may qualify for Prime + 0.50% to Prime + 2.00%

RBC Business Term Loan Rates

• RBC Business Term Loan: Prime + 1.50% to Prime + 5.00% based on credit profile [RBC Business Banking, accessed January 2025]
• RBC Prime Rate: 5.45% (as of January 2025) [RBC Prime Rate]
• Effective rate range: 6.95% to 10.45% for standard applicants
• RBC offers relationship pricing discounts of 0.25% to 0.75% for clients with multiple RBC business products
• Equipment-secured loans may qualify for Prime + 1.00% to Prime + 2.50%

BMO Business Term Loan Rates

• BMO Business Term Loan: Prime + 1.25% to Prime + 4.50% [BMO Business Banking, accessed January 2025]
• BMO Prime Rate: 5.45% (as of January 2025) [BMO Prime Rate]
• Effective rate range: 6.70% to 9.95% for qualified applicants
• BMO’s “Business Edge” program offers preferred rates for businesses with $500K+ in annual revenue
• BMO advertises “rates as low as Prime + 0.75%” for well-secured, established businesses

Rate Comparison Context

• Bank of Canada policy rate: 3.25% (as of January 2025, following December 2024 cut) [Bank of Canada]
• Prime rate at all major banks: 5.45% (Prime = Policy Rate + 2.20% spread) [Financial Post, January 2025]
• Rate spreads have compressed slightly following 2024 rate cuts, with average business loan margins narrowing by 0.15-0.25% [Canadian Bankers Association, Q4 2024]

Rate methodology by institution

TD Rate Determination Factors [TD Business Lending Guidelines, 2024-2025] 

• Credit score bands: 680-719 (standard), 720-749 (preferred), 750+ (premium pricing tier) [TD Business Lending Guidelines, 2024]
• Time in business multiplier: 2-5 years (standard), 5-10 years (reduced margin), 10+ years (best rates)
• Industry risk classification: TD uses internal 5-tier industry risk model affecting rates by up to 1.50%
• Collateral coverage ratio: 100%+ coverage can reduce rates by 0.50-1.00%

RBC Rate Determination Factors [RBC Business Banking Documentation]

• RBC uses a 7-factor credit scoring model for business loans [RBC Business Banking Documentation, 2024]
• Debt service coverage ratio (DSCR) threshold: minimum 1.20x for standard approval, 1.50x+ for preferred rates
• Personal credit score of guarantor(s) weighted at approximately 30% of decision
• Existing RBC relationship depth: each additional product can reduce rate by 0.10-0.15%

BMO Rate Determination Factors [BMO Commercial Lending Documentation]

• BMO’s “Business Risk Rating” system assigns scores from 1-10, directly affecting rate margins [BMO Commercial Lending, 2024]
• Revenue consistency valued highly: businesses with <10% annual revenue variance receive better rates
• Sector-specific rate adjustments: healthcare, professional services typically receive 0.25-0.50% better rates than retail, hospitality
• Geographic considerations: urban businesses may receive marginally better rates due to collateral liquidity

3. Loan Amounts And Term Structures 

TD bank business term loan parameters

Loan Amounts

• Minimum loan amount: $5,000 for TD Small Business Loan [TD Website, 2024]
• Standard term loan range: $25,000 to $500,000 for most SMB applications
• Maximum for established businesses: Up to $5,000,000 with full underwriting [TD Commercial Banking]
• Average approved loan amount for Canadian SMBs at TD: approximately $125,000 [Industry estimates based on public filings]

Term Lengths

• Standard terms available: 1, 2, 3, 4, 5, 7, and 10 years
• Most common term selected: 5 years (approximately 45% of term loans) [TD Annual Report, 2023]
• Equipment financing: terms up to 7 years or useful life of equipment
• Real estate-secured: terms up to 25 years with 5-year rate resets

RBC business term loan parameters

Loan Amounts

• RBC Small Business Loan: $5,000 to $50,000 (streamlined approval) [RBC Website, 2024]
• RBC Business Term Loan: $50,000 to $1,000,000 (standard underwriting)
• RBC Commercial Term Loan: $1,000,000 to $25,000,000+ (full commercial review)
• Average SMB loan approval at RBC: approximately $150,000 [RBC Investor Presentation, 2023]

Term Lengths

• Available terms: 1 to 10 years for standard business term loans
• Flexible amortization: up to 15 years with shorter terms available
• Most popular structure: 5-year term with 10-year amortization (reduces monthly payments)
• Seasonal payment options available for businesses with cyclical revenue

BMO business term loan parameters

Loan Amounts

• BMO Small Business Loan: $10,000 to $75,000 (simplified process) [BMO Website, 2024]
• BMO Business Term Loan: $75,000 to $2,000,000 (standard commercial)
• BMO Commercial Loan: $2,000,000+ (dedicated commercial banking team)
• BMO’s average SMB loan size: approximately $175,000 [BMO Investor Materials, 2023]

Term Lengths

• Standard terms: 1 to 7 years for unsecured term loans
• Secured term loans: up to 10 years
• Commercial mortgages: up to 25 years
• BMO offers “payment holidays” of up to 3 months for qualified borrowers

Comparative approval likelihood data

Approval Rates by Loan Size

• Loans under $50,000: approximately 65-70% approval rate at Big Five banks [CFIB Access to Financing Survey, 2023]
• Loans $50,000-$250,000: approximately 55-60% approval rate
• Loans $250,000-$500,000: approximately 45-50% approval rate
• Loans over $500,000: approximately 35-40% approval rate [BDC Financing Study, 2023]

Factors Affecting Approval Amount

• Businesses with 3+ years operating history approved for 40% higher amounts on average [StatCan Business Financing Survey, 2022]
• Collateral availability increases approved amounts by 50-100% [BDC Research, 2023]
• Personal guarantee requirement: 95%+ of SMB loans under $500,000 require personal guarantees [CFIB, 2023]

4. Qualification Requirements Comparison 

TD bank eligibility criteria

Business Requirements

• Minimum time in business: 2 years (officially stated), though 3+ years preferred for best terms [TD Business Lending]
• Minimum annual revenue: $100,000 for standard term loans; $50,000 for small business loans
• Business must be incorporated or registered in Canada
• Industry restrictions: TD does not lend to certain sectors including cannabis, cryptocurrency, and adult entertainment

Financial Requirements

• Minimum personal credit score of guarantor: 650 (680+ for preferred rates)
• Debt service coverage ratio: minimum 1.15x, preferred 1.25x+
• Current ratio (current assets/current liabilities): minimum 1.0x
• Maximum debt-to-equity ratio: typically 3:1 or lower

Documentation Required

• 2 years of business financial statements (preferably reviewed or audited)
• 2 years of business tax returns (T2 for corporations, T1 for sole proprietors)
• Year-to-date interim financial statements
• Business plan for loans over $250,000 or new businesses
• Personal net worth statement for all guarantors
• Personal tax returns (2 years) for guarantors

RBC eligibility criteria

Business Requirements

• Minimum time in business: 2 years for standard products [RBC Business Banking]
• RBC Start-up Loan Program: available for businesses under 2 years with strong personal credit and business plan
• Minimum annual revenue: $75,000 for small business products; $150,000 for standard term loans
• Must maintain primary business banking account at RBC (for relationship pricing)

Financial Requirements

• Minimum personal credit score: 660 for consideration, 700+ for competitive rates
• DSCR requirement: 1.20x minimum
• Positive working capital preferred
• No recent bankruptcies (personal or business) within 7 years

Documentation Required

• 2-3 years of financial statements
• Business tax returns (2 years minimum)
• Accounts receivable and payable aging reports
• Cash flow projections for the loan term
• Proof of business registration and corporate documents
• Personal financial statements and credit authorization for all owners with 20%+ stake

BMO eligibility criteria

Business Requirements

• Minimum time in business: 2 years standard, 1 year for businesses with strong collateral [BMO Business Banking]
• BMO offers “Emerging Business” products for companies 1-2 years old
• Minimum annual revenue: $100,000 for standard term loans
• Business must operate in Canada with Canadian banking needs

Financial Requirements

• Minimum personal credit score: 650, with 680+ preferred
• DSCR: 1.15x minimum, 1.30x+ for unsecured loans
• Demonstrated profitability in most recent fiscal year (exceptions for high-growth businesses)
• Industry-specific metrics may apply (e.g., occupancy rates for hospitality)

Documentation Required

• Financial statements (2 years, reviewed preferred for loans over $250,000)
• Tax returns (2 years business, 2 years personal for guarantors)
• Business plan or use of funds summary
• Equipment quotes or purchase agreements (for equipment loans)
• Environmental assessments for real estate-secured loans
• Franchise agreements (if applicable)

Startup and new business flexibility comparison

TD Startup Options

• TD does not offer dedicated startup term loans
• Alternative: TD Business Credit Card with limits up to $50,000 (no time-in-business requirement for strong personal credit)
• Alternative: TD Small Business Line of Credit (available after 1 year with strong personal guarantee)
• TD partners with BDC for startup financing referrals

RBC Startup Options

• RBC Start-up Loan: up to $50,000 for businesses under 2 years [RBC Website]
• Requirements: personal credit score 720+, business plan, personal guarantee, 25% equity injection
• RBC Futurpreneur partnership: additional support for entrepreneurs 18-39 years old
• RBC Women in Business program: specialized support and potential rate reductions

BMO Startup Options

• BMO Emerging Business Term Loan: for businesses 1-2 years old, up to $100,000
• Requirements: 680+ personal credit, detailed business plan, 100% personal guarantee
• BMO partners with Futurpreneur Canada for young entrepreneur support
• BMO’s “Ready for Business” program offers mentorship alongside financing

5. Application Process And Approval Timelines

TD application process

Application Channels

• In-branch with TD Business Banking Advisor (preferred for loans over $100,000)
• Online pre-qualification available through TD EasyWeb Business
• Phone application through TD Business Banking Centre: 1-800-387-2828
• Mobile app: limited business loan functionality, primarily for account management

Process Steps

1. Initial consultation and needs assessment (30-60 minutes)
2. Document collection and submission (1-5 business days typical)
3. Credit analysis and underwriting (3-10 business days)
4. Conditional approval and term negotiation (1-3 business days)
5. Final documentation and signing (1-2 business days)
6. Funding disbursement (1-3 business days after signing)