TD Canada Trust offers business borrowing options for operating cash flow, asset purchases and business growth. The appropriate product and documentation depend on the business, the financing purpose and the requested amount.
Applicants should begin by reviewing TD Business Banking's current borrowing information and speaking with TD about the requirements for their application.
TD Small Business Loans
A TD small business loan may be considered when a business needs a defined amount for equipment, vehicles, renovations, property-related costs or another longer-term investment. A financing application should clearly connect the amount requested to quotations or project costs and show how the business expects to make scheduled debt payments.
Loan structure, pricing, security, repayment terms and required documents vary. Confirm the currently available product and application requirements directly with TD rather than relying on general examples.
TD Business Line of Credit
A TD business line of credit is generally intended for recurring or short-term cash-flow needs rather than a single long-term purchase. An application may need to explain the operating cash cycle: when inventory, payroll and suppliers are paid, when customers pay, the expected peak borrowing requirement and how the balance will be repaid.
The requested credit limit should be supported by the cash-flow forecast and working-capital assumptions, not selected in isolation.
When TD May Request a Business Plan
A business plan may be useful when TD needs additional context for a start-up, expansion, acquisition, major capital purchase or working-capital request. It can bring the financing request, management case, market evidence and projections together in one document.
Requirements depend on the financing product, borrower and transaction. Applicants should confirm current documentation requirements directly with TD. A business plan does not replace TD's application, credit review or any other documents the bank requests.
Business Plan for TD Business Financing
A financing-focused plan should explain the request clearly enough that a reviewer can understand what is being funded and how the proposed debt fits the business. Depending on the application, it may need to establish:
- the amount of financing requested and intended use of funds;
- owner investment and other funding sources;
- business history, ownership and management experience;
- the market, customers and competition;
- sales assumptions and operating expenses;
- the cash-flow forecast and working-capital need;
- existing and proposed debt; and
- repayment capacity under realistic assumptions.
For more detail on the lender-ready scope and process, see our Bank Loan Business Plans service, the Canadian Bank Loan Business Plan Guide and our explanation of how banks evaluate business plans.
What to Include in a Business Plan for TD Financing
The narrative and numbers should tell the same story. The executive summary should identify the facility, amount and purpose; the company and management sections should demonstrate the team's ability to execute; and the market and operating sections should provide evidence for the forecast. Any quotations, purchase agreements or material contracts relevant to the use of funds should be organized as supporting documents.
If a request may involve government-backed financing, applicants can also review the Canada Small Business Financing Program (CSBFP). Eligibility and eligible costs should be confirmed with TD and the program.
Financial Projections for TD Business Financing
Financial projections translate the operating plan into the expected income statement, cash flow and balance sheet. They should also show debt payments, working-capital movements and the assumptions behind revenue, margins, staffing, overhead and capital spending. Together, these schedules help demonstrate when cash is required and whether the business can support the proposed financing.
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Explore Financial ProjectionsHow to Prepare Before Contacting TD
- Define the amount, facility and exact use of funds.
- Organize historical and interim financial statements, existing debt and owner investment.
- Gather quotations, leases, purchase documents or other evidence supporting project costs.
- Prepare realistic operating assumptions and cash-flow projections.
- Ask TD which application forms, supporting documents, security and guarantees apply to the request.
Preparing a TD Business Financing Application?
If you require a customized business plan or financial projections, tell us the financing amount, purpose of funds, business type and deadline. We can review the requirements and confirm the recommended scope.