Answers

Can I get business funding if I am in a consumer proposal? A plain answer.

Q: Can I get business funding while in a consumer proposal?

Possibly, but it is harder. A consumer proposal appears on your credit file, and many funders want it completed or well along with payments made on time. A business with strong, steady deposits can sometimes be reviewed during a proposal, usually for smaller amounts at higher pricing.

Possibly, but it is harder. A consumer proposal or bankruptcy shows on your credit file and many funders will want it completed, or well along with payments made on time. A business with strong, steady deposits can sometimes be reviewed during a proposal, with smaller amounts and higher pricing.

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Can I get business funding while in a consumer proposal?

Key facts

A proposal is an arrangement under the Bankruptcy and Insolvency Act
Current proposal payments are essential
A separate business bank account helps
Options widen once the proposal is complete

How funders see a proposal

A consumer proposal is a formal arrangement under the Bankruptcy and Insolvency Act to repay part of personal debts. It appears on your credit report. For a business funder, the questions are whether the business itself is healthy and whether the owner is meeting the proposal's terms. A proposal with a clean record of payments is read very differently from one that has just begun or has missed payments.

What helps

Proof that proposal payments are current.
A business bank account separate from personal finances.
Strong, consistent business deposits.
A modest, specific request.
Permission from your trustee if your proposal terms require it for new credit.

After completion

Once the proposal is completed, you receive a certificate of full performance. Options improve as time passes and credit rebuilds. Keep a copy of the certificate to share with funders.

Where Canadian files usually start

Monthly revenueTypically from around $20,000 a month in deposits for Canadian files. The exact line varies by funder and by file.

Time in businessTypically about 12 months. Newer businesses can be reviewed, but the options narrow.

Account healthLimited low-balance or negative days. Funders read the last few months of bank statements for this.

CreditScores from 500 are considered. A score of 600 or higher opens more options and better offers.

DocumentsA signed application and recent business bank statements, typically the last four months.

Existing advancesFiles with an existing advance can be reviewed, including second position.

If your question is about your own file rather than the general rule, the fastest route to a specific answer is a review. Send a signed application and your last four months of business bank statements, mention this question in a note, and the response will address it directly. You can also call (305) 384-8391 and ask before applying; there is no cost to ask.

Questions owners ask next

What changes once the proposal is complete?

After the final proposal payment, the administrator issues a certificate of full performance, and your credit file is updated. Keep a copy, because it is the clearest evidence a reviewer can see.

From there, steady business deposits and on-time payments rebuild options quickly. Many owners start with a smaller advance and qualify for better terms at renewal.

Sources and review

Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.

Common questions

Do I need my trustee's permission?

Check your proposal terms and speak with your Licensed Insolvency Trustee before taking new financing.

Is a business bankruptcy different?

Yes. See the past bankruptcy page for business and personal bankruptcy.

What credit score is considered?

Scores from 500 are considered, but a proposal is read on its own facts.