Getting Rejected by Your Bank
Is Not the End.
In Canada, thousands of businesses are declined by banks every year — for reasons that have nothing to do with how well-run they are. lendflo's network of 50+ alternative lenders exists for exactly this moment. fast decision. Apply free.
lendflo vs. Your Bank
Why Canadian Banks Decline Business Loans — and Why It Doesn't Apply to lendflo
Every bank decline has a reason. Here are the most common ones — and how lendflo's network addresses each.
Banks want 2+ years. You just launched or are under 2 years old.
6 months qualifies with lendflo.
Bank requires 650+. Your score is in the 500–640 range.
lendflo considers 500+. Revenue-based: no minimum.
No property, equipment, or assets to pledge.
Unsecured options up to $500K. Equipment finances itself.
Restaurants, construction, trucking flagged as 'high-risk.'
These are lendflo's most funded industries.
Seasonal cash flow patterns concern banks.
Revenue-based financing accounts for seasonal businesses.
Banks rarely do loans under $100K profitably.
Loans from $5K to $2M. All sizes served.
What Happens After a Bank Rejection
3 steps from rejection to funded. Apply free — fast decision.
Apply Free in 3 Minutes
No hard credit pull. Just your business details, monthly revenue, and loan purpose. Takes under 5 minutes.
Receive Competing Offers, Fast
A lendflo advisor matches your file with lenders in our network. You receive multiple offers with rates, amounts, and payment schedules.
Get Funded Fast
Choose your preferred offer. Funds deposited directly to your Canadian business bank account quickly.
Soft credit inquiry only on initial application. No impact on your credit score to check your options.
Frequently Asked Questions
We’re here to simplify your business financing journey, so you can feel confident every step of the way.
Apply through lendflo immediately. Our 50+ alternative lenders use different approval criteria. A bank rejection in Canada does not mean you're unfundable — get a fast decision.
Yes. Bank-specific rejections (RBC, TD, BMO, Scotiabank, CIBC, National Bank) have no bearing on lendflo's lender network. Each lender evaluates your file independently. Many lendflo clients were previously declined by major Canadian banks.
Yes. BDC rejections don't close all options. lendflo's network has funded businesses that BDC declined — particularly newer businesses, those needing faster capital, or businesses with non-traditional credit profiles. BDC rejection is specifically addressed in our process.
No. A bank rejection does not affect your file with lendflo. Our lenders evaluate independently. In many cases, bank-declined businesses are strong lendflo candidates — if the decline was due to business age, collateral, or industry rather than fundamentals.
Banks require 650+ credit, 2+ years in business, collateral, and 2–4 weeks to decide. lendflo requires 6+ months, $10K monthly revenue, and decides quickly. Banks serve established, low-risk businesses. lendflo serves growing Canadian businesses that banks say no to.
3 months of business bank statements, your CRA Business Number, a voided business cheque, and government-issued ID. No business plan or extensive financial statements required for most products.
Still have questions?
No obligation, just answers.
The Bank Said No. We Might Say Yes.
Apply free in 3 minutes. No hard credit pull. Fast decision. Funding quickly.
How to improve your chances of approval
Six things that make a file easier for a lender to say yes to.
- Check your credit reports — personal and business, and dispute any errors.
- Gather complete bank statements — three to six months, up to date.
- Ask for an amount your revenue supports — lenders size offers to what you can repay.
- Keep personal and business spending apart — mixed accounts slow approvals.
- Explain unusual deposits or seasonal dips — a short note avoids questions.
- Know exactly what the money is for — and how it will pay for itself.
People also ask
Often, yes. Alternative lenders in lendflo’s network look at monthly revenue, cash flow and time in business, not only the credit score, and consider scores from 500. Expect a higher cost than a bank would charge, and compare offers before accepting.
lendflo’s initial review uses a soft credit check, which does not affect your score. A hard inquiry, which can lower it slightly, usually happens only when you go ahead with a specific lender’s final application. Ask each lender which kind of check it uses.
Ask why, fix what you can, then compare other routes: alternative lenders, equipment financing, revenue-based financing or invoice financing. A decline from one lender is not a verdict on your business, because lenders weigh different things.
Often, yes, especially for businesses under three years old, because lenders look at the owner’s personal credit as well as the business’s. Whether a personal guarantee is required depends on the lender and the product. Ask each lender before you sign, and read the offer for any guarantee or security clause.
Terms explained
What is a soft credit check?
A soft credit check, or soft inquiry, lets a lender look at your credit file without affecting your credit score. A hard inquiry, usually made when you proceed with a lender’s final application, can lower the score slightly. lendflo’s initial review uses a soft check.
See in the glossaryWhat is an unsecured business loan?
An unsecured business loan is a loan that does not require you to pledge specific assets as collateral. Lenders decide mainly on revenue, cash flow and credit instead. Because the lender takes more risk, the cost can be higher than for a secured loan, and a personal guarantee may still be requested.
See in the glossaryWhat is an alternative lender?
An alternative lender is a non-bank company that provides business financing, such as an online lender or a private lender. Alternative lenders typically decide faster and use broader criteria than banks, often looking at revenue and cash flow as well as credit, in exchange for a higher cost.
See in the glossaryTopic guide
Part of the guide: Credit and approval
Bad credit, bank refusals, credit scores and how to prepare a file lenders say yes to.