When to Apply for Business Financing - Evolocity Financial Group

When to Apply for Business Financing

When to Apply for Business Financing

You’ve done the research, you found out if you qualify, and you’re ready to apply for business financing – but is now the right time? This is a question we hear from our merchants on a daily basis and as a business owner, you’ve likely already asked yourself the same thing.

What Factors Should I Consider?

Time in Business

Although you only need to have been in business for 6 months to qualify for a Small Business Loan or Merchant Cash Advance with Evolocity Financial Group, more extensive business data can only help. What’s most important to the lender is your transaction history over your businesses’ lifetime. If you’re able to show lenders that your business is stable and trustworthy, that’s really all they need in this department.

Credit History

Very similarly, your credit history shows the lender how your business has been performing. It all comes back to one main factor, trust – your credit history plays a big part in this. To learn more about your credit rating and what it factors in, visit Debt Canada.


Seasonality may not matter as much as you think, it really depends on what type of financing you are trying to secure. The Merchant Cash Advance program, for example, was designed with seasonal or unpredictable businesses in mind. Your advance balance gets paid off faster when sales are strong and allows you to benefit from smaller payments (or no payments at all) when business is slow. When compared to a traditional business loan that features fixed payments, it allows for a lot more flexibility.

When Should I Apply?

The answer changes slightly based on the exact product you’re applying for, but an all-encompassing rule of thumb is to apply when your revenue streams are the strongest. Lenders main goal is to fund healthy, growing businesses – applying during your best performing periods shows you fit the bill.

Lenders do understand that business owners also need capital when things aren’t going as smoothly. You shouldn’t be afraid to apply regardless. You’ll find that lenders, specifically those in the alternative lending space, understand the ups and downs businesses experience and will help guide you in the right direction.

If you have a specific project in mind that’s a few months away, there’s no harm in applying now to get the ball rolling. You can complete your application right now, find out how much you’ll qualify for and which types of financing fit your business best. The application is no-obligation and can be done completely online in a matter of minutes.


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