Situation

Business funding for a home-based business: how it is read and what helps.

Working from home does not prevent funding; the business account is what is read.

✓ Checking what you qualify for does not affect your credit score.

Can a home-based business get funding?

Short answer: Yes. Many trades, consultants, online sellers and service businesses run from home, and a deposit-based review reads business revenue regardless of location. What it needs is a business clearly separate from household finances: a dedicated business account, a registered business and revenue that is plainly business income.

Key facts

Location does not matter; the account does
A dedicated business account is essential
Register the business
Keep household spending separate

How this is read

Working from home does not prevent funding; the business account is what is read.

Many trades, consultants, online sellers and service businesses run from home. A deposit-based review reads business revenue regardless of location, but needs the business to be clearly separate from household finances.

What helps

A dedicated business bank account
Registered business name and number
Consistent customer deposits
Clear records

What hurts

Business revenue in a personal account
Household bills paid from the business account
No business registration

A sensible plan

Open a business account, route all revenue through it and keep household spending out. After a few months the statements tell the business's story.

Illustrative arithmetic

A home-based bookkeeping firm depositing about $25,000 a month asks for $10,000 for software and a laptop. At a 1.24 factor the payback is $12,400, a cost of $2,400. Over roughly 5 months that is about $118 per business day, or close to 10% of monthly deposits.

Total payback: $12,400.
Cost: $2,400.
Payment: about $118 per business day, close to 10% of monthly deposits.

Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.

Typical starting points

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.

One more thing that helps

The cleaner the separation between business and household money, the stronger a home-based file reads. It also simplifies tax time.

What to prepare

Business registration details
Business account statements
A short description of customers and services

Home-based businesses are a large share of Canadian small businesses, and location alone does not affect a deposit-based review. A separate phone line and business email also help customers and funders recognize the business as distinct.

Talk it through

Merchant Fund Express reviews Canadian businesses in every province and territory. If you would like a specific answer for your business rather than general guidance, send a signed application and your last four months of business bank statements, or call (305) 384-8391 first to ask a question.

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 a commercial address?

No. A home address is fine for many businesses.

Can sole proprietors apply?

Yes, with a business account and registration where required.

Does home-office spending matter?

Keep it separate and documented.