Long-Term Financing Solutions

Whether you plan to buy commercial space or update your IT systems, our experts are here to help you with tailor-made financing solutions.

Make the investments you need to grow your business.

 

Term loan1

A term loan allows you to make the investments you need to operate and grow your business. Term loans are generally used to finance assets with a useful life greater than 12 months.

Features and benefits

Features

  • Minimum term of 12 months
  • Amortization based on the useful life of the asset financed
  • Fixed or variable interest rate
  • Also available as a credit facility that allows several term loans to be disbursed

Benefits

  • Finances capital expenditure projects with limited impact on your working capital
  • Improves or consolidates your business's balance sheet
  • Flexible repayment terms

 

Revolving term credit1

A form of pre-authorized financing that can facilitate your current and future recurring investments.

Features and benefits

Features

  • Minimum loan amount of $1,000,000
  • Based on an assessment of your business's needs
  • Granted as a line of credit
  • Upon expiry, the balance must be converted into a term loan
  • Variable rate calculated using the Bank's prime rate2
  • Terms from 2 to 5 years
  • Revolving funds available for the duration of the term

Benefits

  • Can be used to temporarily finance acquisitions without having to use the business's operating credit
  • Option of converting all or part of the balance into one or more term loans before the term expiry date
  • Better control of liquidity by adjusting repayments based on cash inflows and available funds
  • Improves the business's balance sheet and working capital because the debt is recorded as a long-term liability
  • Flexible repayment terms
  • Access to repaid principal

 

Canada Small Business Financing Program (CSBFP)1

CSBFP is a federal program that helps new and existing Canadian businesses with annual gross (or forecasted) revenues of $10 million or less gain access to bank financing.

With this program, a business can borrow up to 100% of the cost of acquiring eligible assets.

A business may borrow up to $1,000,000, of which a maximum of $350,000 can be used for leasehold improvements or equipment (new or used).

The government's guarantee for financing real property is 15 years and 10 years for other types of assets.

There are also several other government programs that can help businesses gain access to term financing

Useful Articles

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Find out more

Directory of Resources

 

There are a number of government programs to help you gain access to long-term financing.

See our Directory of Resources

Global trade

 

Are you expanding abroad?

Explore our risk management solutions

Loan insurance

 

Did you know that you can insure your loans at any time?

Learn more about loan insurance


1 Financing solutions are subject to credit approval by National Bank of Canada.

2 Prime Rate means the annual variable interest rate published by the Bank from time to time, which it uses to determine the interest rate on demand loans granted by the Bank in Canadian dollars in Canada.

TM BUSINESS CENTRAL is a trademark of National Bank of Canada.