FAQ
Business financing questions, answered plainly
Broker, not lender. Meshesha Robel does not fund loans. Every loan is offered, approved and funded by a third-party lender under its own underwriting. Approval and terms are never guaranteed.
Real estate-secured business financing
What is real estate-secured business financing?
It is a loan or credit facility for a business purpose where the lender registers a mortgage or charge on commercial or residential property as security. Property backing can widen options compared with unsecured business credit, but terms always depend on the lender and the file.
Can my business get financing to buy the building it operates from?
Often, yes. Owner-occupied commercial financing is available from banks, credit unions, BDC, CSBFP participating lenders and alternative lenders. Lenders review the property, the down payment and the business's ability to service the mortgage.
Can I refinance business-owned property to fund my business?
Often, yes. An equity takeout refinance replaces the existing mortgage with a larger one and releases capital to the business, subject to appraisal, loan-to-value limits and cash-flow coverage.
Can I use my home equity to secure a business loan?
Many lenders allow a business owner to pledge residential equity through a refinance, second mortgage or secured line of credit. Your home is at risk if the business cannot repay, so get independent legal advice first.
What is loan-to-value (LTV) and why does it matter?
LTV is the loan amount divided by the property's appraised value. Lenders set maximum LTVs by property type, mortgage position (first or second) and lender type; lower LTV generally means more lender options.
What is real estate-secured bridge financing?
Short-term financing secured by property that funds a business need until a known event, a property sale, refinance or long-term loan, closes. It typically costs more and requires a clear exit strategy.
About the broker model
What is a business loan broker?
A business loan broker is an independent intermediary who assesses a business's financing needs, prepares the application, and presents it to multiple third-party lenders, banks, credit unions, alternative commercial lenders and government-backed programs, to find a suitable fit. The broker does not lend money; the lender approves and funds the loan.
Is Meshesha Robel a lender?
No. Meshesha Robel is a broker, not a direct lender. He does not fund loans and does not guarantee approval or terms. Every loan is approved and funded by a third-party lender under its own underwriting criteria.
How is a broker different from going straight to my bank?
Your bank can only offer its own products and applies its own credit box. A broker can compare several lender types at once, explain trade-offs between them, and act as your single point of contact. If your bank is the best fit, a good broker will say so.
How are business loan brokers paid?
Compensation varies by lender and product. Some lenders pay the broker a fee; some files involve a broker fee paid by the borrower. Any fee you would pay is disclosed in writing before you commit to anything.
Will working with a broker hurt my credit?
An initial conversation does not require a credit check. When a file is ready to submit, lenders will typically pull credit. A broker can help reduce scattered applications by targeting lenders likely to fit before credit is pulled.
Qualifying and documents
What do lenders look at for a business loan in Ontario?
Most lenders review time in business, revenue and its consistency, profitability and cash flow (often summarized as debt service coverage), personal and business credit, existing debt, industry, collateral, and the purpose of the funds. Weighting differs significantly between banks, credit unions and alternative lenders.
What documents are usually needed?
Typically: 2 to 3 years of business financial statements and tax returns (or notices of assessment), 6 to 12 months of business bank statements, interim year-to-date financials, articles of incorporation, a debt schedule, personal net worth statement, government ID, and for equipment, a quote or invoice. Requirements vary by lender.
Can a startup get a business loan?
It is harder but possible. Options can include the Canada Small Business Financing Program through participating lenders, BDC startup-oriented products, equipment financing secured by the asset, and owner-backed credit. Lenders usually weigh personal credit, industry experience and owner investment heavily for startups.
Can I get business financing with bad credit?
Sometimes. Alternative and asset-based lenders may consider weaker credit if revenue, collateral or receivables are strong, typically at higher cost and shorter terms. No broker can honestly promise approval; a realistic assessment is the first step.
What is DSCR and why does it matter?
Debt service coverage ratio (DSCR) is the cash flow available to pay debt divided by total debt payments. A DSCR of 1.25× means $1.25 of cash flow for every $1.00 of payments. Many conventional lenders look for roughly 1.2× to 1.25× or more, though criteria vary.
Other products, cost and timing
How long does business loan approval take?
It varies widely. Some alternative or equipment lenders can respond within days for straightforward files; bank and government-backed term loans commonly take a few weeks; commercial real estate-related financing can take longer due to appraisals and legal work.
What interest rates do business loans in Canada carry?
Rates depend on the lender type, product, security, term and your file. Bank and credit union loans generally sit closer to prime plus a margin, while alternative and revenue-based products cost materially more. Any rate quoted on this site is illustrative, not an offer.
What is the Canada Small Business Financing Program (CSBFP)?
CSBFP is a federal program where the Government of Canada shares the risk with participating banks and credit unions on eligible small business loans for things like equipment, leasehold improvements, real property and, within limits, working capital. The lender, not the government or a broker, decides on approval.
What is revenue-based or merchant cash advance financing?
Revenue-based financing and merchant cash advances provide capital repaid as a share of future sales or card receipts. They can be fast and flexible but are often among the most expensive forms of business funding. It is important to compare the total cost, not just the daily or weekly payment.
Should I choose a term loan or a line of credit?
A term loan suits a one-time, defined need (e.g. an expansion or acquisition) repaid on a fixed schedule. A line of credit suits recurring, fluctuating needs (e.g. inventory, payroll timing) where you draw and repay as needed and pay interest only on what you use.
Do you arrange commercial mortgages?
Yes, real estate-secured business financing, including owner-occupied commercial mortgages, is Meshesha's core focus, within the scope of his Mortgage Agent Level 2 licence and his brokerage. This site does not provide real estate brokerage services.
One conversation. Many lenders.
Tell me about your business, the property involved and what the money is for. I'll explain which lender types realistically fit, no obligation.