So I just completed my one year in Canada and exactly after one year, I have got my business loan approved. As you all know I was running a business in India just before moving to Canada and I was always curious to start something similar in Canada. There were a few challenges. Neither I had any retail space like the one I had back in my home country nor I am familiar with the the taste of Canadian customers. So, I started checking for the retail spaces in nearby malls because those are the places with a lot of customers’ footfalls. I could have searched in other places like local shopping centers where you have stores like Starbucks, Sobeys and other small places like clinics etc but there I feel that unless my brand is well known, the customers would rarely drop in. I needed a space badly where I could keep some of my products and do some experiments to get an understanding what kind of products pulls the customers here. Also, I wanted to know what the price range of the products should be which won’t turn the customers off.

So, I started searching for a retail space which I could use for my experiments for about a month. I called up sales office of a well known local mall and explained my requirements such as a pop-up shop. They informed me that their monthly rent for a pop-up shop in their mall for about 10 feet x 10 feet space is between $6000 to $8000 based on the location in the mall. They need minimum one month commitment and I’ll need to send them my product details first which I want to sell there. Only after approval, they’ll allow any vendor to start selling their products.

As this amount was too high, someone suggested me to check local farmers’ market. This is an indoor space in most of the Canadian cities where local farmers sell their produce. This market too gets a lot of customer foot fall and opens only four days a week i.e. between Thu and Sun. I visited there and after inquiring, I came to know that their monthly rent varies between $1300 to $1800 based on the location and size of the shop. This sounded feasible to me but then the lady at their sales office informed me that they need a minimum lease of four years. So again I had to drop that idea.

After a few days, while browsing local classifieds advertisements during the weekend, I came across an advertisement to buy a shop in an upcoming local mall. This mall had a unique concept where the shops were being sold as Condo Units and the price mentioned there looked interesting too. I decided to check that out. I visited their sales office and blocked one unit of 224 square feet size by giving a cheque of 5% of the amount. I got 10 days of time to go through the sales agreement and arrange my mortgage and I was assured that in case I want to back out within those 10 days, I would get my cheque back. I had to pay a down payment of 25% of the total amount and for remaining 75% I could arrange for the mortgage. I approached 4-5 different banks – ATB, CWB, Scotia Bank, BDC and a mortgage broker. Only ATB and CWB had an option where the customer can buy a commercial property as an investment whereas Scotia and BDC give loans only for owner occupied properties where the owner himself would start his own business.

After having a lot of discussions, I have been told by ATB, CWB and Scotia bank that since I am self employed and new to Canada, they can’t fund. They need minimum past two years tax filing papers as part of the application which I didn’t have. But all of them suggested me to go to BDC (Business Development Bank of Canada) and said that I’ll have better chances of getting loan from them. My mortgage broker was sending me questionnaire to know more about the kind of business I want to open which I was replying. I was already having discussions with BDC and they needed just the following documents. I was applying through my company which I started in 2017 when I got my first contract and my wife and I both are the partners in that company.

  1. Credit history / report of me and my wife
  2. Business Plan – highlighting my past experience, if any (template available on
  3. Cash Flow Plan and Sales Forecast (template available on

During discussions, I came to know from BDC that the chances are higher for the people who have prior such business experience and since we had that, the accounts manager at BDC was quite hopeful about the loan getting approved. As this process was taking time, the account manager asked me to request for 1 week extension of the 10 days deadline from the builder. I requested my property broker and he confirmed one week extension of the back out date.

Finally, after 3-4 days, I received the approval letter from BDC. The BDC accounts manager asked me in the beginning that whether I need any loan for startup capital also. I requested her that I’ll need about $25K for getting the interiors done. So in the approval letter, this $25K too was approved. I have got a 15 days time to accept / reject the offer. As the interest rates and other terms and conditions are better than what other banks would have provided, I am going to accept the offer and submit the required documents.

So finally, I’ll have to spend some extra amount in addition to 25% that I would be paying to the builder are as follows:

  1. BDC Mortgage Processing Fee: 1% of the loan amount
  2. Legal Fee for the BDC’s lawyer: $2000 to $2500
  3. Legal Fee of my lawyer: $2000 to $2500
  4. GST of the retail space that I want to buy (not funded from BDC)

So during the entire process, I found BDC very helpful in funding the startup businesses.

Thanks for reading…

15 thoughts on “How I could secure a business loan – the entire process explained

  1. Hi
    We are planning to apply for canada PR, but there are some points I want to be clear about:
    1. My husband age is 43 ,so can he apply. Some people are saying he will not get PR.
    2. He is into banking with experience of 18 yrs in bank. Which province will be good to apply for. What is the scenario of banking sector there. After getting PR only then he can apply for job?


      1. Hello Sir,
        I am a dentist with 15 years of experience. My husband is in the IT FIELD and has 17 years of experience. Iam 37 years and my husband is 38 years old. We have a 6 year old daughter. Need your inputs whether we can apply for PR for Canada.


        1. Hi Alka, there is no harm in trying and filing the application. Once you get the PR and then if you are not sure whether to move or not, my blogs and I would be able to help you out.


  2. Hi Alok,

    I am 42 years old and have 18 years of Real Estate experience – have worked as a real estate agent, investment banker and now work with a corporate real estate developer and handle land acquisitions / investments for them. In your opinion, which city / state should have good employment opportunities (if at all) in Canada for such a profile?



    1. Hi Sundar,
      The real estate market in Toronto and GTA is better than other places in Canada. The next one you can consider is Vancouver, BC. Please do a quick search on to check for the opportunities.

      Good luck


  3. Hi Alok,
    I really would like your advice on whether it is 1) possible 2) a good idea to move to Canada for me and my family. My husband and I both of us are 46 years old and we have 2 sons aged 14 and 15.
    The reasons for us wanting to move is exactly the same as yours and I am also from Bangalore.
    While my husband is in sales in IT industry, I used to be a banker.
    I know that we will get no points for the age. Language wise my kids and I kinda know french.
    Please be candid about the possibilities.


    1. Hi Rita,

      1) Regarding possibility, you may have to check the eligibility based on current point system because I am not in touch for quite sometime and may not be able to suggest you on that.

      2) Regarding whether it is a good idea, I would say that it has been a good decision for me so far. I have started to believe that middle-aged immigrants like us should not restrict themselves in just trying to secure a job and hoping for a good stable future. Here the job market is very volatile and therefore you never know how soon you can get the job and how long you can stick to it. But on the other hand there are numerous excellent business opportunities in almost every field in entire Canada. Based on our vast industry experience, we should be able to quickly identify gaps and start building a business around it.

      I am planning to write a separate blog very soon on identifying the business opportunities and how to start capitalizing on those.


  4. Dear Alok, Hope you doing well ! I really liked your blogs and find very genuine. I am aspiring CANADA PR so like everyone even I have lots of things going on my head. We are family of 3 member , my age is 40, my wife is 34 & daughter age is 10. I have rich experience in Finance & accounts and my wife also having experience in Banking and currently she entrepreneur and running a small café. Would seek your advice, if this is the right decision to move Canada and can I run a café or restaurant overthere. Although I have comfortable life here but considering education of my kids and better life I wanted to move Canada.


    1. I don’t know how I missed these messages for so long. Apologies for the late reply Dev. Cafe business is a good option here but the location should be good. If you would like to take a franchisee, that could be a costlier option. Franchisee cost requires an initial investment of about $250 K to $1 M based on the brand name. You can get the business loan after about one year in Canada based on your credit history. Restaurant option is very good if you can do something different from the options already available. If you have any specific questions, please don’t hesitate to ask here. I’ll reply quickly this time


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