How Much Unsecured Business Loan Can I Get

What Is an Unsecured Business Loan?

An unsecured business loan is financing that doesn’t require collateral like equipment, vehicles, or property. Approval is based on your business and personal credit strength, revenue, and time in business.

Typical Loan Amounts

In Canada, unsecured business loans generally range:

• $10,000 – $100,000 for small businesses and startups.
  
  
• $100,000 – $250,000+ for established companies with strong revenue and credit.
  
  

For higher amounts, lenders usually require collateral or shift you to a secured loan.

Factors That Determine Loan Size

1. Revenue & Cash Flow
   
   
   • Higher monthly sales = higher unsecured limit.
     
     
   • Example: Businesses with $30k/month revenue may qualify for $100k–$150k.
     
     
2. Credit Score
   
   
   • 650+ opens most lender doors.
     
     
   • 700+ is ideal for maximum approvals.
     
     
3. Time in Business
   
   
   • 6–12 months: Usually capped at $50k–$75k.
     
     
   • 2+ years: May access $100k–$250k unsecured.
     
     
4. Debt Service Ratio
   
   
   • Lenders want proof you can handle new payments alongside existing obligations.
     
     

Cost of Unsecured Business Loans

Because they don’t require collateral, unsecured loans often carry:

• Rates: 8%–25% depending on credit strength.
  
  
• Terms: 6–36 months.
  
  
• Repayment: Weekly or monthly.
  
  

If cost is a concern, alternatives like a line of credit or term loan may be more affordable.

Case Study: Startup Marketing Agency

A Toronto-based marketing agency with 14 months in business applied for an unsecured loan:

• Monthly revenue: $40,000
  
  
• Owner’s credit: 685
  
  
• Approval: $125,000 unsecured loan, 24-month term, 12% rate
  
  

Funds were used for payroll and client acquisition without pledging collateral.

FAQ: How Much Unsecured Business Loan Can I Get?

1. What’s the maximum unsecured loan in Canada?
Typically $250,000, though some lenders may go higher with strong credit and revenue.

2. Can startups qualify?
Yes, but limits are usually lower ($10,000–$50,000). See working capital loan options for flexibility.

3. Is approval faster than secured loans?
Yes. Decisions are often within 24–48 hours.

4. Do I need collateral?
No — but strong cash flow and credit are essential.

5. Can I get unsecured financing with bad credit?
It’s possible, but approval amounts are lower and rates higher. You may consider asset-based lending if collateral is available.

6. What industries qualify?
Most — trucking, construction, retail, restaurants, and professional services.

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Final Thoughts

The amount you can borrow unsecured depends on revenue, credit, and time in business. For most Canadian SMEs, the range is $10,000–$250,000. Beyond that, collateral-backed financing is usually required.

Want to find out how much you qualify for? Contact our credit analysts for a free assessment.