Keep cash flowing
Working capital loans for small businesses
Financing for the day-to-day costs of running your business, so a slow month, a big order or a late-paying customer doesn’t hold you back.
- Broker, not a lender
- Canada-wide, Ontario focus
- Free initial consultation
- Replies within 24 hours
Working capital is the money your business uses to operate: paying staff, buying stock, covering rent and keeping the lights on between the time you spend money and the time customers pay you. Even healthy, profitable businesses can run short when sales are seasonal, when they take on a large order, or when invoices are paid on 30, 60 or 90-day terms.
Working capital financing bridges that gap. Rather than funding a single large purchase, it gives you room to manage cash flow and take on opportunities without draining your reserves.
Financing is subject to lender approval and eligibility. We don’t guarantee approval, rates or terms.
Vetri Group is a broker, not a lender. We charge clients a service or consulting fee for our help; lenders and funding partners make all credit decisions.
What it can be used for
- Payroll and staffing during busy or slow periods
- Buying inventory ahead of a peak season
- Taking on a large order or contract
- Bridging the gap while customers pay their invoices
- Rent, utilities and other operating costs
- Marketing or hiring to support growth
Common forms of working capital financing
There isn’t one single “working capital loan”. Depending on your business and what you need, options can include:
- Short-term business loans: a lump sum repaid over a set term, useful for a one-off need such as stocking up before a season.
- Business lines of credit: a revolving limit you draw on and repay as needed, useful for recurring ups and downs. More about lines of credit.
- Inventory and seasonal financing: financing tied to stock or to a predictable seasonal cycle, common for retailers, nurseries and restaurants.
- Government-backed loans: the Canada Small Business Financing Program can include a limited amount for working capital within a term loan. More about CSBFP loans.
Matching the financing to the need
A good rule of thumb is to match the length of the financing to how long the need lasts. Short-term needs, like inventory you’ll sell in a few months, usually suit short-term or revolving financing. Long-term investments, like equipment or renovations, usually suit longer-term loans. Using expensive short-term money for a long-term purchase is one of the most common ways small businesses get into cash flow trouble.
We’ll help you think this through before you apply, so you borrow what you need, in a form you can comfortably repay.
What lenders typically look at
- How long you’ve been in business
- Revenue and cash flow, usually from bank statements and financial statements
- The credit history of the business and, often, its owners
- Existing debts and repayments
- What the money is for and how it will be repaid
Documents lenders commonly ask for
Every lender is different, but having these ready usually speeds things up:
- Government-issued photo ID for each owner
- Business registration or articles of incorporation
- Recent business bank statements
- Financial statements and/or business tax returns for recent years
- A list of current business debts and payments
- Details of what the financing is for (quotes, invoices or a short plan)
How it works
How we help you get financing
Free consultation
Tell us what the money is for, roughly how much you need and when. We ask about your business, how long you’ve been operating and how it’s doing.
Review your options
We look at your situation and documents and talk through which kinds of financing may fit, including what each one is likely to cost and require.
Prepare the application
We help you put together a clear, complete application and approach lenders that suit your needs.
You decide
If a lender makes an offer, you review the amount, rate, fees, term and conditions before you sign anything. You’re never obliged to accept.
FAQ
Working Capital Financing: common questions
How much working capital can I borrow?
It depends on the lender, the type of financing, your revenue and cash flow, and your credit history. We can’t promise a figure in advance, but after a short conversation we can give you a realistic sense of what to expect.
Can a new business get working capital financing?
Many lenders prefer a trading history, which can make it harder for very new businesses. Some options, including the Canada Small Business Financing Program, are open to start-ups. Talk to us about your situation.
Will I need to give a personal guarantee?
Many lenders ask small business owners for a personal guarantee, especially for newer businesses or unsecured financing. Always read the terms carefully, and ask us if anything is unclear.
Is a line of credit better than a loan for working capital?
A line of credit often suits recurring, unpredictable needs because you only draw what you use. A term loan can suit a one-off need with a clear repayment plan. The right choice depends on your cash flow pattern.
Other financing options
Equipment Financing
Loans and leases for machinery, vehicles, kitchen, clinic and shop equipment.
Business Line of Credit
A revolving limit you draw on when you need it and repay as cash comes in.
CSBFP & Government-Backed Loans
Canada Small Business Financing Program and BDC options for start-ups and growing businesses.
Merchant Cash Advance
Funding repaid from future sales, through our affiliated funding partners. 3+ months in operation.
All business loans
Compare every type of business financing we can help with.
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