We base our approvals for business loans on a few different factors, including personal and business credit history, cash flow, and more. We realize not having access to capital can be challenging so we’d like to explain some of the more common reasons why applications are turned down:

  • Your business is not a registered Canadian company

All businesses that want to use our services must have been registered in Canada for at least one calendar year.

  • Your business credit history

If you or your business have either a limited credit history, a negative credit history, or a high debt utilization, lenders are less likely to approve your application. Lenders will base their decisions on your personal and/or business credit scores, credit utilization or active tradelines. It's important to monitor your credit profile and create a credit-building strategy that improves your score while reducing your credit utilization.

There are a number of ways to help improve your business credit. These include making timely payments, using a business credit card to help build credit history, and keeping your personal and . business expenses separate.

  • Your business requires stronger cash flow

Your transaction history is assessed when submitting an application and your business bank account may not reflect a strong enough cash flow. Connecting your bank directly will allow us to calculate your creditworthiness based on transaction history.

Even if you don’t qualify today, you can reapply in the future.. We understand that circumstances can change, so when the time comes, we welcome you to reconsider Thinking Capital.

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