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"What credit score do I need?" is the first question almost every business owner asks before applying for financing — and it's also the question with the least straightforward answer, because the honest response is: it depends entirely on who you're asking.
By Lender Type: The Real Ranges
Canadian credit scores run on the same 300-900 scale (Equifax and TransUnion), and the minimum threshold shifts a lot depending on the type of lender:
- Big Six banks (RBC, TD, Scotiabank, BMO, CIBC, National Bank): typically 680+, often higher for larger amounts
- CSBFP (Canada Small Business Financing Program) loans, bank-administered: usually 650+
- BDC: generally 650+ though BDC also weighs business plan and industry heavily
- Alternative/private lenders (lendflo's network): as low as 500-550 depending on the product
- Revenue-based financing and merchant cash advances: often no hard minimum — underwritten on cash flow instead
Why the Range Is So Wide
Banks and government-backed programs are underwriting against a personal guarantee and want strong evidence the guarantor is a reliable payer — hence the higher bar. Alternative lenders are frequently underwriting against the business's live cash flow (money moving through the business bank account right now), which is a more direct signal of near-term repayment ability than a credit score built from years of unrelated personal history.
Neither approach is "wrong" — they're just answering different questions about risk.
What Actually Changes at Different Score Bands
Roughly speaking, here's how your options shift as your score moves:
- 750+: Access to the best bank rates and largest CSBFP/BDC amounts
- 680-749: Still bank-eligible for most products, slightly tighter terms
- 600-679: Bank options narrow significantly; alternative lenders become the stronger path, often with better speed too
- 500-599: Bank and government-backed programs are largely off the table; revenue-based and asset-based financing become the primary route
- Below 500: Options narrow further but revenue-based financing and invoice financing remain possible if cash flow is strong
Checking Your Score Before You Apply
Pulling your own credit score through Equifax, TransUnion, or your bank's app is a soft inquiry — it does not affect your score, and it's worth doing before you apply anywhere so you know which tier of lender to expect. Checking your options through lendflo is the same: no hard pull until you accept a specific offer.
