Credit Solution Guidelines

CIBC is committed to helping your business succeed. Informed decisions are the foundation of any successful business, and the first step towards making informed decisions is the preparation of a business plan.

A business plan chronicles all relevant information concerning your business and financial environment and helps you focus on your goals and objectives. It helps determine your financial needs, as well as your strengths and weaknesses, and identifies your market opportunities. A business plan is not only useful to you, the business owner, but may also be required when seeking financing. For help creating a business plan, please refer to the PDF CIBC Your Guide to Business Planning (PDF, 1.9 MB) Opens a new window in your browser..


In addition to having a business plan, here are five more tips to help you select the financing that's right for you:

1) Determine the amount of money you want to borrow by reviewing your business plan. Examine your business objectives and budget, and ensure the following:

  • The amount you want to borrow is reasonable;
  • Your cash flow can support the payments required;
  • The return on any investment made (such as an equipment purchase), justifies the expense.

2) Understand the purpose of the loan. Are you interested in options to assist with your day-to-day operations and help bridge temporary fluctuations in cash flow? Then consider a CIBC Small Business Overdraft or a CIBC Small Business Line of Credit. For renovations, capital or equipment purchases, as CIBC Small Business Loan is often the better option.

3) Consider how you will repay the credit facility. Generally speaking, lines of credit should be repaid with day-to-day cash flow and fluctuate with your business' payment of expenses and collection of accounts receivable. Loans, on the other hand, are typically repaid with consistent regular payments over a longer period of time.

4) Some business and personal information will be required to process your application for credit. A CIBC small business advisor will let you know the documentation required for the facility you are applying for, where to send it and whether a personal guarantee may be required. You should also consider whether you are prepared to secure the loan or linke of credit with other assets as this can impact the interest rate you pay..

5) Once you've determined your needs and are prepared to apply for your CIBC small business credit solution, contact a CIBC business advisor to discuss your options.

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