Situation

Business funding after incorporating a sole proprietorship: how it is read and what helps.

A new corporation can carry forward the history of the business it continues.

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

Does incorporating reset your time in business?

Short answer: Not if you show the history. When a sole proprietor incorporates, the corporation is new on paper but the business may be years old. Funders want the continuous history across both accounts: statements from the sole proprietorship's account, the corporation's new statements and a short note explaining the change.

Key facts

The business can carry its history forward
Send both accounts' statements
Explain the incorporation date in a note
Names must match the right documents

How this is read

A new corporation can carry forward the history of the business it continues.

When a sole proprietor incorporates, the corporation is new on paper but the business may be years old. Funders want to see the continuous history across both accounts.

What helps

Statements from the sole proprietorship's account
The corporation's new account statements
A note explaining the change and date
Same business name and activity

What hurts

A gap between the old and new accounts
Revenue split confusingly between them
Unclear ownership of assets

A sensible plan

Send statements from both accounts covering the full period and explain the incorporation date.

Illustrative arithmetic

A plumbing company depositing about $55,000 a month asks for $20,000 for a service van. At a 1.22 factor the payback is $24,400, a cost of $4,400. Over roughly 6 months that is about $194 per business day, or close to 7% of monthly deposits.

Total payback: $24,400.
Cost: $4,400.
Payment: about $194 per business day, close to 7% 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

Keep the old personal or sole-proprietor account open until revenue has fully moved, so the history is complete.

What to prepare

Statements from both old and new accounts
Incorporation date and documents
A note confirming continuous operations

Incorporation often coincides with growth, so the most recent months may be the strongest in the file; make sure they are visible. Update your business number program accounts and supplier records with the new corporate name promptly.

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

Does the corporation count as new?

Legally yes, but continuous history helps.

Do I need the old account statements?

They help a lot.

Will I still sign a personal guarantee?

Usually yes.