Do I need to be in business for a certain number of years to qualify?

Loan providers require businesses to have been operational for a certain period before they qualify for a loan. This ensures the business has established itself and has a track record of stability. Here’s a general overview:

• Most loan providers prefer to finance businesses that have been operating for a minimum of 3 years or longer. An established operational history provides the financial institution with assurance that the business has demonstrated financial stability and the ability to repay debt.
• Newer businesses that have been operating for less than 3 years may still qualify, but the eligibility criteria are typically more stringent for such businesses. Factors such as a strong business plan, revenue projections, and collateral can help improve the chances of getting approved.
• The standard eligible business legal structures consist of sole proprietorships, partnerships, private limited companies, and limited liability partnerships that meet the years in business requirements.
• Additionally, the business owners and partners seeking financing should ideally have at least 3 years of prior industry experience managing or operating a business in their sector. This domain expertise is seen favourably in the evaluation process.