.avif)
Share the requirement
Describe the amount, purpose, business location and intended timing. Use the application link to begin.
BUSINESS FINANCING · CANADA & USA
Business Term Loans
Fund a planned business investment with a defined loan amount and an agreed repayment schedule.
Apply for financing
What is a business term loan?
A business term loan provides a lump sum for an eligible investment, repaid over an agreed period. It may suit an expansion or improvement with a known budget. Unlike a revolving line of credit, repaying the loan does not normally make that amount available to borrow again.
Illustrative example: A business fitting out a second location separates one-time opening costs from ongoing payroll. A term loan may address the fit-out; the cash-flow plan must also cover the period before the new location supports itself.
What can you finance?
Expansion projects
Separate opening costs, hiring and operating reserves. Allow for the time needed for additional capacity to generate receipts.
Business improvements
Describe the improvement, supplier quotes and expected commercial benefit. Distinguish equipment purchases from other project costs.
A planned investment
Use a term structure for a clearly scoped need. Recurring cash swings may call for a revolving facility instead.
Build the loan around the project
Separate the purchase from the cash needed to operate
A term loan works best when the amount and purpose can be defined before funds are advanced. Start with a written project budget, then separate the purchase itself from the cash required to keep the business operating. A new location, for example, may need deposits, installation, training and an operating reserve as well as the main construction or equipment expense. Identify which items are eligible under the proposed agreement.
Illustrative example: expanding a workshop
A workshop budgets $70,000 for improvements and $10,000 for installation and training. It plans to contribute $20,000, leaving a preliminary financing need of $60,000 before any fees or additional reserves. This is a budgeting illustration, not an offer. The next step is to forecast when the expanded workshop will generate cash and whether existing operations can carry the payments during the transition.
Match the repayment period to the benefit
Consider how long the investment will remain useful and how quickly it begins supporting revenue. A shorter schedule can reduce the time spent in debt but place more pressure on monthly cash flow. A longer schedule can lower individual payments while increasing total financing cost. Neither is automatically better: compare the actual written proposals against the expected useful life and a slower-than-planned start.
Who can qualify for business term loans?
A term loan may suit an operating business with a defined budget, financial records and cash flow to support scheduled payments. Review the investment timeline and existing debt alongside the request.
Available options depend on your business location in Canada or the USA. Include the province or state, transaction currency and any cross-border activity in your request.
Apply for financing
The process, step by step.
Review the request
Provide the requested documents and clarify the costs, structure and conditions of any proposal.
Complete agreed conditions
If approved and you choose to proceed, complete the agreement and required conditions before funds are disbursed.
What should you compare before proceeding?
Amount & net proceeds
Confirm the advance, any deductions and the cash available for the project.
Term & repayment
Review payment frequency, amortization, any final balance and early repayment conditions.
Security & obligations
Understand collateral, guarantees and covenants before signing.
What makes a term-loan request easier to assess?
A budget supported by evidence
Provide current supplier quotes, project estimates or a purchase agreement together with a clear explanation of the amount requested. Identify your own contribution and where it will come from. If the project has several stages, show when each payment is due. Do not assume every deposit or incidental expense can be financed; clarify eligible uses before committing to a supplier.
Cash flow after existing obligations
Financial statements and bank activity help explain how the business will repay the new loan. Include existing debt and lease payments, seasonal changes and any large customer concentration. A profitable year does not necessarily mean cash is available every month. Test the proposed payment against the slowest period, and explain how the business would respond if the project takes longer to produce revenue.
The right entity and security details
Identify the legal business applying, its location in Canada or the USA and the transaction currency. If assets will secure the loan, provide ownership details and disclose existing financing against them. Security and personal guarantees are separate questions, so ask about both. Cross-border operations may require additional explanation about which entity receives revenue and which entity carries the payment obligation.
Read the repayment terms before deciding
Term, amortization and any final balance
The loan term describes the agreement’s duration; amortization describes the schedule used to pay down principal. They are not always identical. Ask whether regular payments fully repay the balance by maturity or leave a final amount due. If a balloon payment remains, identify a realistic repayment source rather than assuming refinancing will be available on acceptable terms.
Fixed and variable costs
A fixed interest rate and a fixed payment are not interchangeable descriptions of every financing arrangement. Confirm what can change, when changes take effect and which fees sit outside the scheduled payment. Compare net funds received, payment frequency and total scheduled repayment on the same basis. If the rate varies, consider whether a higher payment would still fit the business budget.
Early repayment and the next financing need
Ask how early repayment is calculated, whether charges apply and whether extra principal payments are permitted. Also review restrictions that could affect future borrowing or asset sales. A term loan is generally a defined advance, not a balance you can repeatedly redraw. If cash needs rise and fall throughout the year, compare the line-of-credit option linked below before selecting a one-time loan.
What should happen before you accept a supplier quote?
Check the quote’s expiry date, deposit conditions and delivery assumptions against the financing process. A commercial deadline does not make approval certain. If the project changes, update the spending plan rather than assuming the original request covers additional work. Keep a separate record of items already paid from your own funds, because reimbursement may have different conditions from paying a supplier directly. Ask how funds would be released and what evidence is required. This helps you coordinate the purchase without treating an initial financing discussion as a binding commitment or a guarantee that every project cost will be covered.
Business Term Loans compared with other options
Compare
Business Term Loans
Working Capital Loans
Business Line of Credit
Primary purpose
Defined project or investment
Defined operating cash requirement
Recurring operating cash needs
Repayment / cash flow
Scheduled repayment under the agreement
Agreed payments from business cash flow
Draw, repay and potentially reuse within conditions
Main review focus
Financial performance, project and repayment capacity
Revenue, obligations and intended use
Financial records and facility eligibility
Costs to compare
Net proceeds, interest or financing charges, fees and total repayment
Net proceeds, interest or financing charges, fees and total repayment
Net proceeds, interest or financing charges, fees and total repayment
General comparison only. Availability, security and final conditions vary by business, product and location. On smaller screens, scroll the comparison horizontally.
Explore your industry
Find guidance for your sector and how your business operates.
9 industries · Swipe, scroll or choose a group below.
Transportation & logistics
Explore financing considerations for carriers, logistics businesses and freight operations.
Explore industry →Construction & contractors
Plan around project costs, contract timing and day-to-day business needs.
Explore industry →Manufacturing & wholesale
Explore financing for production, order cycles and wholesale operations.
Explore industry →Farming & agriculture
Consider seasonal cash flow, operating needs and long-term farm investment.
Explore industry →Restaurants & hospitality
Explore financing for food-service businesses, hospitality operations and growth.
Explore industry →Medical, dental & wellness
Plan financing around practice operations, patient services and business expansion.
Explore industry →Technology & business services
Explore financing considerations for project delivery, hiring and growth.
Explore industry →Forestry, mining & energy
Consider contract cycles, operating requirements and investment in resource businesses.
Explore industry →Aviation & marine
Explore financing considerations for commercial aviation and marine operations.
Explore industry →Frequently asked questions
Is a term loan the same as a working capital loan?
Term loan describes a repayment structure; working capital describes a use of funds. A working capital request can be structured as a term loan.
Are payments always fixed?
No. Rate and payment provisions depend on the agreement. Confirm how any variable rate affects payments or the remaining balance.
What is the difference between term and amortization?
The term is when the loan agreement ends or comes due. Amortization is the period used to calculate repayments. If amortization is longer than the term, a balance may remain at maturity; confirm how it will be paid.
Is this available in Canada and the USA?
Mehmi accepts financing enquiries from businesses in Canada and the United States. Include your province or state, business activity and transaction currency. Available structures and requirements vary by location and request.
What should I compare before accepting an offer?
Compare the total amount payable, upfront cash, payment frequency, security, personal guarantees and early-settlement terms. Check what happens at the end of the agreement and whether the payments remain manageable in a slower month.
Can I finance equipment and operating costs together?
Describe the equipment purchase and operating budget separately. An equipment agreement may cover approved purchase-related costs, while payroll, inventory or other operating needs may require working capital financing. Confirm the permitted use of each facility.
Financing guides for your next step.
CANADIAN FINANCING GUIDE
Working Capital Loans vs Line of Credit Canada
Explore the considerations, documents and contract questions for this financing topic.
Read article →CANADIAN FINANCING GUIDE
Secured vs Unsecured Business Loan Canada
Explore the considerations, documents and contract questions for this financing topic.
Read article →Tell us what your business needs.
Share your business location, intended use and amount requested to begin a financing discussion.
Apply for financingFinancing is subject to application review and approval. Availability, costs, terms and documentation vary by business, product and location. This page provides general information and is not a financing offer.