Answers

Do I need business tax returns to get funding in Canada? A plain answer.

Not for most merchant cash advance and revenue-based files, which are decided on recent bank statements and a signed application. Larger requests, bank loans and government-backed programs usually ask for tax returns and financial statements.

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Do I need business tax returns to get funding in Canada?

Key facts

MCA and RBF: recent bank statements, usually no returns
Banks: usually two to three years of statements and returns
Government-backed loans: returns plus a business plan
Behind on filings? Disclose it and show a plan

Which products need what

Product	Bank statements	Tax returns / financial statements
Merchant cash advance	Yes, recent months	Usually not for smaller amounts
Revenue-based financing	Yes, recent months	Sometimes for larger amounts
Bank loan or line of credit	Yes	Usually yes, two to three years
Government-backed loan	Yes	Usually yes, plus a business plan

Why statements are enough for many files

Bank statements show what actually came in and went out recently, which is what a revenue-based payment depends on. Tax returns are filed after year-end and describe the past year; they help for larger or longer financing.

If your tax filings are behind

Unfiled returns can still matter. If the CRA is assessing penalties or arrears, that affects the file. Bring filings up to date as soon as possible, and disclose any outstanding amounts.

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 if your tax filings are behind?

Late filings are common in small businesses and do not automatically end a deposit-based review, but they raise questions. Say so plainly, give the expected catch-up date and note any balance owed to the CRA.

Getting filings current opens cheaper options later. Many owners take a smaller advance now, catch up their returns, then apply to a bank or a government-backed program once the paperwork is clean.

Sources and review

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

Common questions

I am a sole proprietor. Do you need my T1?

Not usually for smaller revenue-based files.

Will larger amounts need more documents?

Often yes, such as financial statements and tax filings.

Can I apply while my taxes are being prepared?

Yes, using bank statements.