Business lines of credit

Bring stability and flexibility to your cash flow so you’re ready for anything.

Instant access to the funds you need, when you need them

As a business owner it pays to be prepared—to weather dips in revenue or to seize opportunities to grow and expand. A business line of credit can add flexibility and stability to your cash flow so you can bridge temporary shortfalls, avoid disruptions and never miss a chance to grow. Get a same-day response when you apply for a business line of credit up to $50,000. Find out if you’ve qualified and, if you have, find out your approved rate and credit line amount.

Benefits of a Gulf & Fraser business line of credit

Flexibility

Credit revolves automatically, meaning you can borrow and repay funds as needed, with flexible repayment options.

Convenience

With a line of credit attached to your business chequing account, you get immediate access to the funds you need so you can act quickly when you need to.

Save on interest

Borrow for your business at a lower interest rate than many credit cards with our highly competitive 1% annual fee. Only pay interest on the money you use for the time you use it.

Personalized advice when you need it

You’re more than a number at Gulf & Fraser. Personalized service and support from our Business Relationship Managers means you get the guidance you need to help your business thrive.

Explore business lines of credit

Business lines of credit

Keep your business on track through the highs and lows with a Gulf & Fraser business line of credit and personalized advice from your Business Relationship Manager. Speak directly with a Gulf & Fraser advisor—no middleman—whatever the size of your business and wherever you are on your business journey. Our team is here for you with personalized guidance and financial tools to help you grow your business with confidence.

Direct, personalized support from your Gulf & Fraser advisor
Credit available when you need it
Revolves automatically
Interest calculated only on the amount you use
Lower interest rate than many credit cards
Variable interest rates
Can be secured or unsecured
Customizable—whatever your credit needs, we can customize options to fit your business

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Ready to apply for a line of credit for your business?

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Business line of credit FAQ

What is a business line of credit?

A business line of credit is a revolving loan, which means you have access to a set amount of money (a credit limit) that your business can borrow against, drawing on it when you need it, repaying it and then drawing on it again. It can be a valuable tool for meeting short-term operating expenses or capital expenses like bridging seasonal cash flow gaps, buying inventory or repairing equipment.

How do you get a business line of credit?

To get a business line of credit, you’ll need the right paperwork and a good financial plan. Be ready to show potential lenders that your business is financially stable and can handle the credit responsibly.

A lender will want to see your business’s financial and credit history. They may ask for documents like bank statements, tax filings, profit and loss and cash flow statements, or accounts receivable and accounts payable.

To qualify you’ll need to show that your business is making money or has potential to earn, that you have a strong track record of handling finances well and a clear plan for how you'll use the line of credit and make regular payments.

Is it hard to get approved for a business line of credit?

Getting approved for a business line of credit depends on your business's financial health and the type of credit you’re looking for.

Approval may be easier for secured lines of credit, where you offer collateral to secure the loan, making it less risky for the lender. It may be a bit harder to get approved for an unsecured line of credit since the lender relies more on your credit history and business financials.

Either way, having a good credit history and a clear financial plan improves your chances of getting approved.

Reach out to a Business Relationship Manager to find out more!

What is the difference between a personal line of credit and a business line of credit?

There are some important differences between a personal line of credit and a business line of credit.

The first has to do with basic ownership and use. A personal line of credit is owned and used by an individual to cover personal expenses. A business line of credit, on the other hand, is owned and used by a business to cover business expenses.

The second difference involves liability. To process your application for a personal line of credit, we’ll check your individual credit score. To process your application for a business line of credit, we’ll need to review both your personal credit score and the credit score of your business.

The third main difference involves which accounts you can append (i.e. attach) to your line of credit. A personal line of credit can be used in connection with a personal chequing account. A business line of credit, on the other hand, can only be connected to a business chequing account.

What is a typical interest rate on a business loan?

There is no typical interest rate because there are many factors that determine the interest rate on a particular business loan. Some of these factors include:

Type of loan (e.g. commercial mortgage, small business loan)
Amount borrowed
Term length
Payment terms
Fixed or variable rate
Bank of Canada’s prime rate
Collateral to secure the loan
Your credit history
Your revenue stability

What's the current interest rate of business loans in BC now?

The current interest rate of business loans in BC can vary widely. Rates depend on many factors including:

Type of loan (e.g. commercial mortgage, small business loan)
Loan amount
Term length
Payment terms
Fixed or variable rate
Bank of Canada’s prime rate
Collateral to secure the loan
Your business’s credit history
Your personal credit history
Your revenue stability

What’s the difference between a secured and an unsecured line of credit?

With an unsecured business line of credit, the business does not promise assets like inventory or a term deposit. As such, these are more risky for lenders, so they often have smaller credit limits and higher interest rates than secured lines of credit. Business owners will often need to show proof of a strong credit history and business track record.

Is my line of credit protected?

Gulf & Fraser offers our members optional business LOC insurance from CUMIS, the leading provider of insurance-related products and services to Canadian credit unions.

CUMIS provides coverage for life, disability, and critical illness. Connect with your Business Relationship Manager to learn more about how CUMIS can protect you and determine if this is the right option for your business.