Know where you stand before the bank does.

What lenders look at

The 5 Cs of credit, in plain language

Banks and credit unions have weighed small business loans the same basic way for decades, often called the “5 Cs of credit”. Loan Ready checks the parts you control, so you can see your application the way a loan officer will.

• Capacity

  Can the business afford the payments?

  Lenders compare the cash your business brings in with what goes out, including the new loan payment. This is usually the single biggest factor.

  Monthly revenue · Existing debt payments

• Character

  Will you do what you say?

  Your personal credit history and your experience in the industry are how a lender judges whether you'll repay and run the business well.

  Credit score · Industry experience

• Capital

  How much of your own money is in it?

  A down payment and a healthy personal net worth show commitment, and give you a cushion if the business has a slow stretch.

  Equity / down payment · Personal net worth

• Collateral

  What backs the loan if things go wrong?

  Tangible assets the business owns, like equipment, inventory and property, give the lender something real behind the loan.

  Business tangible net worth

• Conditions

  Does the loan itself make sense?

  The amount, rate and term decide the size of the payment. Asking for the right amount over the right term can change the whole picture.

  Loan amount · Loan term

Browse every loan term in plain language

Who it’s for

For owners who want to walk in prepared

• Starting a business

  Find out what a lender will expect from you before you write the business plan, not after.

• Growing one

  Planning equipment, a renovation, more stock or a second location? Check that the numbers carry the payment.

• Turned down before

  See which factors are likely holding you back, and what to work on before you try again.

Questions

Frequently asked questions

Does using Loan Ready affect my credit score?

No. Loan Ready never pulls your credit report. You choose your credit score range yourself, so nothing shows up with TransUnion or Equifax.

Is my financial information stored?

The figures you type in, like revenue, expenses and debts, are used to calculate your result and are not stored. We keep your account details and a record of each assessment's date and result band. If you came to Loan Ready through a partner, your results are kept as described in the Partner-Client Terms you'll be asked to accept. We never sell your information or share it with lenders.

How much does it cost?

A pack of three calculations is $10.99 CAD, paid once by card. There is no subscription. Unused calculations can be refunded within 14 days of purchase, less the payment processing fee.

Does a strong result mean I'll be approved?

No. Loan Ready is an educational self-assessment, not a credit decision. Every bank and credit union has its own standards and makes its own decision. What a strong result does tell you is that the basics a lender looks at are in good shape.

What do I need before I start?

Rough figures for your monthly revenue, expenses and existing debt payments, the loan you have in mind, your credit score range, and what you personally own and owe. Financial statements help but aren't required. Most people finish in a few minutes.

Who is behind Loan Ready?

Loan Ready is built by 5 Cs Business Solutions Inc., a New Brunswick, Canada company that helps small-business owners prepare for financing.