Using a Personal Loan for Business Startup Costs
Launching a small business often means covering costs before any revenue comes in — equipment, initial inventory, permits, or a first month's rent on a workspace. A personal loan can bridge that gap without giving up equity or taking on a business partner. It's one of several reasons Canadians borrow that we cover in detail.
What It Typically Covers
- Equipment and tools
- Initial inventory or supplies
- Business registration and permits
- First and last month's rent on a workspace
Eligibility Requirements
- 18 years or older (19 in BC, NB, NL, NS, NT, NU, and YT)
- Canadian citizen or permanent resident
- Valid Social Insurance Number (SIN)
- Active bank account in your name
- A regular source of income
How Much Do You Typically Need?
For business startup costs, borrowers often look at around $3,000 — though the right amount depends on your specific situation.
Pros
- Fast approval — often within minutes
- Soft credit check only, so checking rates doesn't hurt your score
- Repayment term sized to the amount, keeping payments manageable
- Available to a wide range of credit profiles
Things to Consider
- A personal loan is based on your personal credit, not a business plan — often faster than a business loan for small amounts.
- Keep business and personal expenses separate once you're funded, even if the loan itself is personal.
- For larger, ongoing business financing, a dedicated business loan or line of credit may offer better terms long-term.
How to Apply for a Business Startup Costs Loan
Step 1
Apply in 2 minutes
Tell us you're covering business startup costs and a bit about your situation. No paperwork.
Step 2
Compare offers
See real offers from vetted lenders, matched to your credit profile.
Step 3
Get funded
Accept an offer and funds typically land within 24 hours.