Estimate Your Business Loan Options
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600 Credit Score
A credit score of 600 is considered "fair" by most Canadian lenders. While you won't qualify for the lowest rates, many lenders actively work with this credit tier. Your approval odds improve significantly with stable income, low existing debt, and employment history. A co-signer or collateral can unlock better terms.
What This Means for You
With a 600 credit score, you're in a transitional zone — above the "bad credit" threshold but below the "good" tier where the best rates live. This means you have options, but strategy matters enormously. Most Big Five banks will consider applicants at 600, but their auto-approval systems often flag scores below 650, meaning your application may require manual underwriting. This isn't necessarily bad — it means a human reviews your full picture. Alternative lenders and credit unions are often your best bet at this credit level. Credit unions evaluate members more holistically, considering banking history and relationship length. Alternative online lenders have built models specifically for the 580–650 range, offering faster approvals than banks with rates that, while higher than prime, are significantly better than bad-credit lender rates. Your income stability is your biggest lever. A borrower with a 600 score and 3+ years of stable full-time employment will get significantly better terms than someone with the same score and recent job changes.
Your Action Plan
- 1Pull your free credit report from Equifax and TransUnion — check for errors that could be dragging down your score
- 2Pay down credit card balances below 30% utilization before applying — this alone can boost your score 20–40 points in 30 days
- 3Gather 3 months of bank statements and your 2 most recent pay stubs — lenders at this tier want to see income stability
- 4Apply to a credit union where you have an existing relationship first — they often offer the best terms for 600-range scores
- 5Consider a co-signer with good credit — this can move you from 'fair' tier rates (14–20%) to 'good' tier rates (9–14%)
- 6If you're self-employed, prepare your last 2 years of tax returns and 6 months of business bank statements
- 7Don't apply to more than 3 lenders within a 14-day window — multiple inquiries beyond this can further impact your score
Common Questions — 600 Credit Score
From startup financing to expansion capital, LoanIQ analyzes your business profile against Canadian business lenders to estimate your approval odds and rate band. Business loans in Canada range from $5,000 to $500,000+, with terms and structures that vary based on your revenue, business age, and industry.
How It Works
Describe your business
Tell us your industry, time in business, and what you need funding for.
Share your financials
Monthly revenue and credit range — no bank statements needed at this stage.
Review your estimate
AI-generated approval odds, rate band, and recommended funding strategies.
Connect with lenders
Apply directly to matched business lenders with your profile pre-filled.
Key Factors in Business Loan Approval
Time in business is the top factor — 2+ years significantly improves approval odds
Monthly revenue demonstrates repayment capacity and affects rate tier
Personal credit score of the business owner is still considered by most lenders
Industry type can influence risk assessment and available lenders
Province of operation affects available programs and lender access
Estimated Rate Bands
| Credit Tier | Estimated Rate Range | Approval Likelihood |
|---|---|---|
| Established (3+ years, 700+ credit) | 7.99% – 14.99% | Very High |
| Growing (2+ years, 650+ credit) | 12.99% – 24.99% | High |
| Early Stage (1-2 years, 600+ credit) | 18.99% – 34.99% | Moderate |
| Startup (Under 1 year) | 24.99% – 45%+ | Low-Moderate |
* Rates are estimates based on typical lender criteria. Canada's 35% APR Criminal Code cap (in force January 1, 2025) applies to consumer credit agreements; loans to incorporated businesses are commercial agreements and may exceed this rate. Your actual rate may vary. These are not offers.
Strategies for Better Business Loan Terms
Established businesses with strong revenue should prioritize lowest-rate strategies to save on interest costs.
Startups may have better luck with alternative lenders who weigh revenue and business plan over credit history.
If you need capital quickly, merchant cash advance or revenue-based financing can fund within 48 hours.
Frequently Asked Questions
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Estimate Your Business Loan Options
2 minutes. No credit check. No obligation.