Collateral Business Loans
Collateral business loans may offer lower rates than other forms of alternative funding, and small business owners in Canada may also qualify for more funding than they would with unsecured loans or lines of credit.
What is a Collateral Business Loan?
A collateral business loan is a secured loan that uses commercial real estate as collateral to reduce the risk to the lender, which in turn helps reduce the cost of the loan. Because the funding is secured, small business owners also typically qualify for more funding than they would with revenue-based financing that isn’t secured by “hard” collateral.
Greenbox Capital® offers collateral business loans from $50,000 up to $250,000, with no restrictions on how you can use your funds. The terms of your collateral business loan will depend primarily on the value and type of collateral offered, your business’s cash flow, and the business owner’s background, personal credit, and repayment history. At Greenbox Capital, we never want to put anyone’s primary place of residence at risk, so we only accept developed property that is not the business or property owner’s primary residence as collateral.
Who should apply for a collateral business loan in Canada?
Collateral business loans are ideal for:
- Businesses who need low cost capital for a short period of time
- Businesses seeking a larger or longer-term funding option than a merchant cash advance or other small business loan
- Businesses looking to make a large purchase, such as new equipment or more inventory
- Businesses planning an expansion, merger, or acquisition
Collateral business loans can benefit medical practices, construction companies, manufacturers, automotive businesses, business services, and more. No matter what industry you operate in, our expert Funding Advisors will work closely with you to select the best funding option to help you achieve your business’s goals without sacrificing cash flow.
How to Get a Collateral Business Loan
- 1
Apply
Gather 3 months of bank statements and other records. For faster approval, grant us secure access to your bank account’s transactional data.
- 2
Choose Funding
A Funding Advisor will reach out to you within 1 hour (during regular business hours) to complete your application & discuss your funding options.
- 3
Get Funded
Once you and your Funding Advisor determine what funding option works for your business, your funds can be approved and deposited within 24 hours.
- 4
Set Repayment
Payments will be automatically deducted from your business’s daily or weekly debit and credit card sales. Payment amounts will be based on your sales.
How to use collateral business loans
There are no restrictions on how collateral business loans can be used. Collateral loans are typically best used to:
- Fund growth strategies, new equipment, and other costly purchases that have a strong ROI
- Finance an expansion, merger, or acquisition
- Take advantage of seasonal business opportunities such as purchasing inventory in bulk
Collateral Business Loan Qualification Requirements
Greenbox Capital’s collateral business loan requirements are lower than traditional lenders and other alternative funders. At Greenbox Capital, we know that credit scores don’t tell the whole story, so we focus on the overall health of your business and the property. Here are some factors we consider:
- Type of collateral—we don’t accept primary residences as collateral
- Value of collateral, including a recent property appraisal, county tax bill, and real estate schedule
- Business revenue
- Cash flow
- Vendor payment history
- Years in business
- Public records
Collateral Business Loans Q&A
What assets can be used as collateral to secure a loan?
We accept developed property that is not the business or property owner’s primary residence as collateral. We will not accept your primary residence as collateral.
Do you offer collateral loans in every province?
Yes, we fund throughout Canada.
How long does it take to get funding for a collateral loan?
Funding from a collateral loan can be made available in as little as 5-10 business days. Speak with a Funding Advisor for more information.
How much collateral is needed for a business loan?
The amount of collateral you need for a business loan depends on the size of the loan you are seeking.
Where To Get Collateral Loans In Canada
- Edmonton
- Calgary
- Red Deer
- Lethbridge
- Victoria
- Vancouver
- Abbotsford
- Surrey
- Richmond
Manitoba
- Winnipeg
Northwest Territories
- Yellowknife
Yukon
- Whitehorse
- Toronto
- Ottawa
- Mississauga
- Hamilton
- Kingston
- London
- Thunder Bay
- Windsor
- Kitchener
- Brampton
- Markham
- Peterborough
- Cambridge
- Oshawa
- Vaughan
- Caledon
- Halton Hills
- Milton
- Burlington
- Oakville
- Richmond Hill
- Stouffville
- East Gwillimbury
- Georgina
- Uxbridge
- Pickering
- Ajax
- Whitby
- Clarington
- North York
- Etobicoke
- Barrie
- Scarborough
- Innisfil
- Newmarket
- Aurora
Nunavut
- Iqaluit
Nova Scotia
- Halifax
Quebec
- Quebec City
- Montreal
New Brunswick
- Fredericton
- Moncton
Newfoundland and Labrador
- St. John’s
- Regina
- Saskatoon
Prince Edward Island
- Charlottetown
