Business Loans For Computer Repair Stores

Business Loans Computer Repair

Over the past few decades, computers and laptops have grown more important for people who need to work, contact their loved ones, and earn an education. That’s why starting your own computer repair store has become a profitable way to make a living.

The only problem is that building any sort of business can require a lot of funding. The good news is, there are several ways to get approved for a business loan so you can cover some of the costs your computer repair store generates over time.

Learn how to start a business in Canada

What Can a Computer Repair Store Use a Business Loan For?

There are many different types of business financing available in Canada. A standard business loan is normally a specific amount of money that is deposited into your bank account after the application and approval process is done.

Once you have the funds in your account, you can use them to finance almost any cost associated with your computer repair store, including but not restricted to:

  • Marketing – Getting proper advertisement for your computer repair business is a very important way to find new customers, investors, and lenders.
  • Expanding – If your store is already doing well, a business loan can help you renovate and expand your current space or build a secondary location.
  • Hiring New Employees or Simply Making Payroll – Running a computer repair store by yourself can be difficult, so be sure your staff are compensated fairly.
  • Helping Cash Flow Problems – When your store has a cashflow shortage, a business loan can help you cover any emergencies that need to be paid for in cash.
  • Purchasing Supplies – From cheap to expensive, computer repair stores require tons of different gadgets, parts and other supplies to fulfill every client’s order and sell products or services, such as:
    • Replacement pieces (motherboards, power supplies, etc.)
    • New inventory (monitors, keyboards, etc.)
    • Cables (USB, HDMI, etc.)
    • Storage devices (hard drives, memory cards, etc.)
    • Other internal components (cooling fans, connectors, etc.)    

Learn how to manage your store’s inventory.

  • Financing Equipment – One of the costliest parts of any technology-based business is buying or renting equipment. Here are just a few computer repair tools, machines and vehicles that a business loan can allow you to finance: 
    • A delivery/repair van or truck
    • Cash & card terminals 
    • Office equipment (phones, printers, etc.) 
    • Power tools (drills, soldering irons, etc.) 
    • Heating, air conditioning & ventilation units 

Check you how you can use your business assets to secure a loan.

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Where Can You Get a Business Loan For Your Computer Repair Store? 

Unless you’re financing your entire operation with your own savings, chances are you’ll have to apply for some type of business financing. Luckily, there are several places where you can get a business loan for your computer repair store: 


Many prospective business owners will apply for financing through their bank, where larger loans and better interest rates can be found. The biggest problem is that some banks have strict borrowing regulations, especially for startups and businesses that are considered “high risk”, meaning they may not repay their debt on time. 

As such, it can be tough to get approved for a decent sized loan with an affordable rate and repayment term if you have bad business or personal credit, a low income or if the bank thinks your store doesn’t have a good chance of succeeding. 

Credit Unions

At your credit union, you may find that borrowing restrictions are more lenient than with most banks. If you’re a qualified member, you can also invest in other businesses. You may even be eligible for better rates, loan conditions, and benefits. 

The only downside is that the approval process can be long and it’s difficult to become a member if you don’t meet the appropriate requirements.

Government Funding

The Canadian government offers a number of financial solutions for businesses. For example, the Canada Small Business Financing Program allows the government to share risk with various lenders, which can make it easier to access financing and pay down your computer repair store’s expenses. 

The CSBFP is specifically made for businesses that earn under $10 million in gross revenues annually and participating lenders may actually offer loans that have lower rates than other business financing sources.

Alternative Lenders 

If you’re having trouble qualifying for funding from your financial institution or the government, there are also many private lending companies that can offer you a business loan for your computer repair store. Keep in mind, some alternative loans come in smaller amounts, have higher rates and involve shorter repayment terms. 

That said, the best part about alternative business financing is that many lenders have more flexible approval standards, as well as fast and easy application processes that can be completed online. Essentially, if you can prove that your computer repair store will make its loan payments on time, you shouldn’t have too much trouble qualifying.

Best Business Loan Providers For Computer Repair Stores

AmountAPRTerm (months)
SharpShooter Funding1k-300kFee-Based: Starting at 9%12- 60 Learn more
OnDeck5k-300k8% – 29% 6-18Learn more
Lending Loop1k-500k+5.9%3-60Learn more
Thinking CapitalUp to 300k8%-22%6-12 Learn more
Merchant Growth5k-500k-6-18Learn more
BDC100K +6.05% +60Learn more
IOU Financial5K-100k15%+12-18Learn more

What do You Need to Apply For a Business Loan?

Approval requirements can vary based on where you apply and what type of business financing you’re trying to acquire. Here are some of the main factors lenders will examine before they approve your computer repair store for a business loan:

Personal Credit Score

While it’s not you that needs financing, your lender may inspect your credit score because it shows them how you’ve handled your personal debts in the past. Generally, having a score in the 650 – 900 range is the best way to get approved for a large loan with a low rate and affordable term. Sadly, the opposite may occur if your score is within the bad range (300 – 600).  

Business Credit Score

Your computer repair shop should also have a business credit score. Although there may be several versions of your credit score on file at every credit bureau (TransUnion, Equifax, Dun & Bradstreet), most range from 0 – 100. Like your personal credit score, it will be much easier to get approved for a decent business loan and rate if your score is closer to 100.

Financial Documents

During the approval process, your lender may also request certain financial documents to see what your computer repair store’s current and future cash flow could be like. These documents can include your:

  • Latest personal and business bank statements
  • Most recent personal and business tax returns
  • Store’s sales records

Business Plan

When applying, it’s good idea to present your lenders with a viable and profitable business plan, which should include details like:

  • The major expenses you need to finance
  • An executive summary and description of your business
  • Your business structure and sales strategies
  • Financial Projections:
    • Startup cost exhibit – How much you’ll have to spend to launch your computer repair store and keep business running smoothly.
    • Break-even analysis – How long it will take for your business to pay off its total losses and begin earning a profit. 
    • Revenue projection statement – A five-year prediction that details how much money your shop could lose prior to making a profit.
    • Financial plan for the first year – Your store’s predicted expenses and income during each month of its first year. By year two, you should be able to show your financial data on a quarterly basis.      

Alternative Business Financing Options For Your Computer Repair Store

Despite the benefits that a business loan can provide, it might not end up being the best financial solution for your computer repair store. Thankfully, there are many alternative business financing options available in Canada, including but not limited to: 

  • Equipment Loans – This financing can help you buy or lease the equipment your computer repair store needs to function properly. While some lenders will deposit the funds into your bank account, others will pay the equipment provider directly. Some lenders even specialize exclusively in equipment lending for businesses.
  • Merchant Cash Advances – Instead of getting a loan, a merchant cash advance allows you to leverage a percentage of your computer repair store’s future debit and credit card sales in exchange for consistent financing. In some cases, terms are open ended and payments are automatically withdrawn on a weekly basis.
  • Invoice Factoring – This asset-based lending allows you to sell your computer repair store’s accounts receivable (unpaid customer invoices) to a third-party “factor” for a discounted rate. Typically, the payment is sent in a lump sum and is equal to 70% – 90% of the total invoice amount.
  • Business Line of Credit – Instead of having a specific sum of liquid cash, your business can use this product to dip into a revolving credit limit, similar to a credit card. This can be a perfect solution for smaller recurring expenses. Plus, you’ll have the option of making minimum or partial monthly payments.

Frequently Asked Questions

Do I need a business plan to get a business loan for my computer repair shop?

As mentioned, some lenders want to see a profitable business plan before they’ll approve your computer repair store for any sort of financing. Basically, it tells them how well your shop is doing currently, how it could perform in the near future and how much they could eventually profit from the transaction.  While this is a standard part of the financing procedure for most banks and credit unions, some alternative lenders won’t require a business plan. However, having one can definitely help you qualify for a better loan, rate and repayment term.

What do I need to start a business in Canada?

Starting a business takes a lot of work and planning, to get started there are a few things you should do right away. 
  • Create a business plan – Make sure to compile a solid, professional business plan that contains any relevant details that could help your store get approved for financing (revenue projections, sales strategies, assets, etc.).
  • Figure out what products and services you’ll offer – Will you stick to desktops and laptops or will you also repair smartphones and tablets? Will you visit clients’ homes or deal with the computer needs of different businesses?
  • Find the right workspace, tools and suppliers – Remember, it can be hard for your computer repair store to flourish if it doesn’t have enough space, equipment or inventory to get the job done and make a profit.
  • Legalize your business – Once your business is semi-established, the next step is to get everything you need for it to conduct legal sales and services in your area, such as a business license, health & safety permits, and insurance.

What kinds of services can I offer as a computer repair store?

Remember, your computer repair shop doesn’t have to specialize solely in computer repairs. As the owner, you can also offer services like:
  • Repairs and upgrades for mobile devices
  • Computer services for different businesses
  • Home deliveries, repairs and installations
  • Malware or virus removal 
  • Software error or hardware diagnostics 
  • Defragmentation, registry cleaning and memory wipes 

Interested in Starting or Financing a Computer Repair Store?

A business loan can be the perfect solution for covering your expenses, expanding or improving your shop and dealing with any high-interest debts. Loans Canada website or can help connect you with the best lending sources in your area today. 

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