As the country’s largest financial institution, the Royal Bank of Canada (RBC) provides commercial financing nationwide. And with products available for companies of all sizes, is RBC the right business lender for you?

What Makes RBC Unique?

Despite its Canadian roots, RBC has offices across the globe and is well-known for investment banking, capital markets, and corporate finance. As a result, it’s often a status symbol to work with RBC, as the firm’s premier brand attracts plenty of clients.

Moreover, RBC backs Ownr — an online platform that helps Canadians incorporate their businesses and automate legal work. And while hiring an attorney can cost thousands of dollars, Ownr acts like a virtual lawyer and handles your regulatory and filing needs for less. To learn more about the specific plans and pricing, please see our partner site’s Ownr Review.

16 Things to Know About RBC Business Loans

Since RBC business loans aren’t one size fits all, understanding the nuances of different products can help you make more informed decisions.

1. What RBC Business Loans Are Used For

When applying for an RBC business loan, the company will ask about the purpose of the funds. Within its drop-down menu, you can choose the following options:

• Improve Office Space
• Purchase Equipment
• Lease Equipment
• Support Business Growth
• Refinance Investment Property
• Purchase Business Property

2. RBC’s Short-Term Loan Solutions

If you need a short-term cash infusion, these options help with working capital and are typically repaid within 12 months.

• Royal Business Overdraft
• Royal Business OperatingLine
• CreditLine For Small Businesses
• Asset-Based Loans
• Canada Small Business Financing Line of Credit

3. RBC’s Mid to Long-Term Loan Solutions

For extended business loans with longer maturities, RBC provides the following options:

• Business Term Loans
• Equipment Leasing
• Equipment PurchaseLine
• RoyFarm Agriculture Business Mortgage
• Commercial Mortgage
• Financière Agricole du Québec
• Canadian Agricultural Loans Act Loan
• Canada Small Business Financing Loan
• Farm Management Line of Credit

3. What to Know About Royal Business Overdraft

To protect your business during short-term cash crunches, Royal Business Overdraft provides up to $10,000 in protection and funds are instantly available when your account balance falls below $1. The purpose is to avoid non-sufficient funds fees.

The product is recommended for:

• Businesses with variable day-to-day cash flow
• Businesses that need to cover cash expenses when receivables collections are slow
• Businesses that want additional protection during short-term emergencies

4. What to Know About a Royal Business OperatingLine

As an unsecured line of credit, you can borrow as little as $10,000 and you don’t need to post collateral. You only pay interest on what you withdraw, and funds are automatically repaid from any surplus balance in your everyday operating account. The product is recommended for:

• Businesses that want access to capital when they need it
• Companies that value revolving credit and variable borrowing amounts
• Firms that prefer variable repayment policies over fixed installments

5. What to Know About a CreditLine For Small Businesses

Like the option above, a small business credit line is an unsecured revolving product similar to a business credit card. If you prefer the latter, our partner site reviews a Keep Business Card that earns cash back and has a limit of up to $400,000.

The RBC credit line has no fee, a competitive interest rate, and you earn one Avion point for every $2 spent, which can be used to to invest in your business or provide your employees with perks.

The product is recommended for:

• Small businesses that prefer revolving loans over term loans
• Small businesses that may want to borrow different amounts at different times
• Small businesses that want a no-fee product that earns rewards

6. What to Know About RBC Asset-Based Loans

Asset-based loans are secured products and require collateral. The minimum loan amount is $2,000,000, and repayment terms range from two to five years. For more information, please view our partner site’s Asset-Based Financing Guide, and for provincial resources, the solutions available in Ontario, Alberta, and BC.

The product is recommended for:

• Larger businesses that are capital-intensive
• Cyclical companies that may need cash during uncertain seasonal periods
• Businesses that want to improve their working capital positions

7. What to Know About an RBC Canada Small Business Financing Line of Credit

Designed to assist entrepreneurs, a Canada Small Business Financing Line of Credit has a maximum limit of $150,000, repayment terms of five years (with an option to renew another five years), and RBC charges prime plus 5% interest. In addition, 85% of the loan is guaranteed by the federal government, which increases approval rates.

The product is recommended for:

• New businesses looking to expand
• Established businesses in need of working capital solutions
• Small firms that may have trouble obtaining other forms of financing

8. What to Know About RBC Business Term Loans

RBC business term loans are typically used to purchase property and equipment. They are amortizing loans, meaning you repay principal and interest each period, and you can choose fixed or variable financing rates.

The product is recommended for:

• Businesses that want to increase their production capacity
• Companies that want to upgrade old equipment
• Companies that want to refinance existing debt and lower their interest costs

9. What to Know About RBC Equipment Leasing

Like an auto lease, RBC equipment leasing lets you purchase an asset immediately without paying the entire balance upfront. Typically, you can rent the item and return it at the end of the lease or buy out the remaining balance. Moreover, lease payments are tax deductible and RBC loans include the cost of taxes and installation.

The product is recommended for:

• Businesses that need new equipment but want to preserve liquidity
• Firms that want to invest in new technology
• Capital-light companies that prefer to rent rather than own depreciating assets

10. What to Know About a RBC Equipment PurchaseLine

An RBC Equipment PurchaseLine is a revolving line of credit used to purchase equipment. You can choose between variable and fixed financing rates, and the funds can be used to lease or buy equipment outright.

The product is recommended for:

• Larger businesses that need to purchase multiple pieces of equipment
• Companies that may want to rent some assets and buy others
• Companies that want to consolidate their existing equipment leases/loans into one product

11. What to Know About a RBC RoyFarm Agriculture Business Mortgage

Designed to assist farmers with crop cultivation, a RoyFarm Agriculture Business Mortgage is comprised of a series of small loans, each with their own terms, rates, and schedules.

The product is recommended for:

• Businesses that want to acquire farmland
• Existing farmers who need new equipment
• Farmers who want to consolidate old loans or re-mortgage their properties

12. What to Know About a RBC Commercial Mortgage

Financing starts at $500,000, and the funds are typically used to buy or refinance an income-producing property. You can also choose variable or fixed-rate financing.

The product is recommended for:

• Firms wanting to acquire multi-residential (at least seven rental units), industrial, office, or retail properties
• Companies purchasing properties in active rental and sales markets
• Businesses comfortable with collateralized loans

13. What to Know About a RBC Financière Agricole du Québec

Designed for farmers in Quebec, RBC provides agricultural loans up to $5,000,000 and forestry loans up to $750,000.

The product is recommended for:

• Companies where the property is at least 60% owned by agricultural practitioners
• Companies located in Quebec that want to improve land, diversify production, or start a greenhouse operation
• Existing farmers who want to expand their operations

14. What to Know About a RBC Canadian Agricultural Loans Act Loan

The Canadian Agricultural Loans Act (CALA) helps current and aspiring farmers obtain credit of 80% and 90%, respectively, of the intended asset. Financing reaches upwards of $500,000.

The product is recommended for:

• Farmers who want to purchase real estate or equipment
• Farmers who want to expand their operations
• Businesses that don’t need more than $500,000 in funding

15. What to Know About a RBC Canada Small Business Financing Loan

Somewhat similar to the line of credit above, a Canada Small Business Financing Loan (CSBFL) lets qualifying companies borrow upwards of $1,000,000, of which $500,000 is allocated for equipment, leasehold improvements, intangible assets, and working capital, and $150,000 can be used solely for intangible assets and working capital. In addition, the Government of Canada guarantees 85% of the loan.

The product is recommended for:

• Startups and new businesses in need of capital
• Established companies that want to bolster their cash flow
• Small businesses that want to purchase land, equipment, or other major assets.

16. What to Know About an RBC Farm Management Line of Credit

As an all-in-one solution, an RBC Farm Management Line of Credit can be used to purchase property, land, equipment, or conduct renovations. There are also several terms and rate options to choose from.

The product is recommended for:

• Farmers who prefer revolving credit
• Farmers who want a universal product for different types of purchases
• Farmers who want a cash cushion for when unexpected events occur

Conclusion

As you can see, RBC has an extensive list of business loans available with terms and repayment structures that should fit your needs. Moreover, there are options for small, medium, and large businesses, which makes RBC a great resource for companies of all sizes.