Canadian Business Loan Calculator
Estimate your monthly payment for a term loan, equipment financing, or working capital. Compare scenarios then get a real rate quickly.
⚠ Estimate for illustration only. Actual rates depend on your credit profile, revenue, and time in business. Get a fast real offer.
Formula: M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1] where r = monthly rate, n = number of payments
Available Financing Types
Each financing type has its own typical parameters.
Term Loan
Equipment Financing
Working Capital
Understanding Your Business Loan
Annual Percentage Rate (APR)
APR includes the interest rate plus fees. Always compare APR — not just the nominal rate — when comparing offers from different lenders.
Amortized Loan vs Line of Credit
An amortized loan has fixed monthly payments. A line of credit is revolving — you only pay interest on what you actually use.
Cash Flow Impact
Before signing, ensure your monthly payment is less than 15–20% of your average monthly revenue. Above that threshold, repayment can strain your cash flow.
Early Repayment
Some lenders penalize early repayment. Others allow you to pay off at any time without fees. Check this clause before signing.
Frequently Asked Questions
We’re here to simplify your business financing journey, so you can feel confident every step of the way.
Business loan monthly payment formula: M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where P = loan amount, r = monthly rate (annual rate ÷ 12), n = number of months. Example: $100,000 at 8.5% over 36 months → monthly payment ≈ $3,157.
Rates vary by profile: banks typically offer 6–10% for well-established businesses; alternative Canadian lenders offer 8–24% depending on credit score, industry, and time in business.
No — this calculator is an estimation tool. Your actual rate depends on your credit score, annual revenue, time in business, industry, and loan type. Submit your free application through lendflo to receive real offers from 50+ lenders quickly.
Term varies by loan type: term loans typically run 12–60 months; equipment financing 24–84 months; working capital loans 3–24 months; lines of credit renew annually.
Through lendflo, amounts range from $5,000 to $2,000,000. The maximum depends on your annual revenue, business age, and loan type.
Some lenders charge origination fees (1–3%), administration fees, or prepayment penalties. lendflo always shows you the complete terms before you sign. Our brokerage service is 100% free for you.
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Get My Real RateDocuments to have ready
Having these ready is the quickest way to a fast decision.
- Business bank statements — three to six months.
- Business registration and business number — (BN, or NEQ in Quebec).
- Government-issued ID — of the owner.
- A voided cheque — or banking details.
- A supplier quote or invoice — for any equipment or inventory.
- Financial statements or tax filings — for larger amounts.
Documents by type of financing
What lenders usually ask for, by product.
| Financing | Usually needed | Often added |
|---|---|---|
| Term loan | 3–6 months of bank statements, ID, business number | Recent financial statements for larger amounts |
| Equipment financing | The same, plus a supplier quote or invoice | Details of the equipment |
| Working capital | Recent bank statements showing monthly revenue | Explanation of seasonal dips |
People also ask
Through lendflo, most applicants get a fast decision, and funds typically arrive shortly after approval. Speed depends on the lender and on how complete your documents are, so have recent bank statements ready before you apply.
Most lenders ask for three to six months of business bank statements, your business registration, identification, and the amount and purpose of the loan. Equipment loans add a supplier quote, and larger amounts may need recent financial statements or tax filings.
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.
No. lendflo is free for business owners; it is paid by the lender when a loan funds. Whoever arranges a loan, always compare the total amount you will repay on each offer, not only the interest rate.
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 a business term loan?
A business term loan is a lump sum that you repay with interest over a fixed period, usually in regular monthly payments. It suits planned, one-time investments such as expansion or hiring. Through lendflo, term loans run from $25,000 to $2,000,000, with repayment terms of up to 60 months.
See in the glossaryWhat is the total cost of borrowing?
The total cost of borrowing is everything you pay on top of the amount you borrow, including interest and fees. The annual percentage rate (APR) expresses that cost as a yearly percentage so offers can be compared. Always compare the total amount repaid, not only the interest rate.
See in the glossaryTopic guide
Part of the guide: Business term loans
How term loans work, what they cost, how long they last and how to qualify.