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HomePersonal BankingWealth ManagementSmall BusinessCommercialCorporate & InstitutionalAbout BMO

Term Loans

Access to the financing you need to help your business continue to grow.

Whether you need to purchase new equipment, acquire new property, expand your facilities or consolidate your debts, BMO® offers a range of loan options to help you finance those expenditures — with flexible terms and payment options to suit your needs.

BMO® Small Business Instalment loan

A convenient way to access the financing you need with control over interest rates and amortization period.

Ways to ensure your financing comes with manageable payments

  • Protect your business cash flow from interest rate fluctuations by choosing a fixed-interest-rate option (variable rate options available)
  • Minimize the amount of each payment by selecting a longer amortization period
  • For credit needs up to $250,000, there’s one simple no-fee application

Subject to meeting Bank of Montreal’s usual credit granting criteria.

Instalment Loan Plan (ILP)

Whether you need to buy fixed assets such as equipment or machinery, acquire another business or refinance existing debt, this fixed-rate, flexible, longer term loan could be the ideal solution

Features to meet your need for predictable, manageable payments:

  • Available to commercial customers with aggregated authorizations of $500,000. (Maximum permitted amount is $200,000 per customer with individual loan limited to $100,000)
  • Prepay at any time without penalty
  • Terms of up to 5 years
  • Principal repayment options: monthly, quarterly, semi-annual and annual1
  • Protect your business cash flow from interest rate fluctuations with blended monthly payments (to include both principal and interest payments) that are fixed for the term selected
  • Minimize the amount of each payment by selecting a longer amortization period (up to 15 years)
  • Enjoy greater security and peace of mind for you and your business by insuring your loan with the optional Commercial Loan Insurance Plan
Subject to meeting Bank of Montreal’s usual credit granting criteria.
1Prepayment only on an exception basis and is subject to an added charge during the period of the term selected.

BMO® Fixed-Rate Term Loan

If you need to purchase capital assets and are looking for a longer term loan with predictable payments and protection from rising interest rates, this loan option could be the ideal solution.

Features to meet your need for predictable, manageable payments

  • Terms of up to 5 years
  • Amortization periods of up to 15 years
  • Principal repayment options: monthly, quarterly, semi-annual and annual1
  • Principal plus interest or blended monthly payments (blends both principal and interest payments) are available and fixed for the term selected
  • Enjoy greater security and peace of mind for you and your business by insuring your loan with the optional Commercial Loan Insurance Plan
Subject to meeting Bank of Montreal’s usual credit granting criteria.
1 Prepayment only on an exception basis and is subject to an added charge during the period of the term selected.

BMO® Variable-Rate Term Loan

If you need to borrow to purchase capital assets and want to take advantage of lower rates when rates are falling, or fix the rate when it begins to rise, this loan option could be the ideal solution.

Convenient, flexible features

  • Amortization periods of up to 15 years
  • Principal repayment options: monthly, quarterly, semi-annual and annual
  • Prepayment of principal is permitted without penalty
  • Interest rate fluctuates and is based on BMO’s Prime Rate plus an increment
  • Available in U.S. Dollars, based on BMO’s U.S. Base Rate plus an increment
  • Switch to a Fixed-Rate Term Loan at any time
  • Enjoy greater security and peace of mind for you and your business by insuring your loan with the optional Commercial Loan Insurance Plan
Subject to meeting Bank of Montreal’s usual credit granting criteria.

Canada Small Business Financing Program

If you are the owner of a small business with revenue not exceeding $5,000,000 in the fiscal year when the loan is authorized, and you need to purchase, install, renovate or repair equipment, leasehold improvements, land or buildings, this federal government-guaranteed program can help you finance capital expenditures for your business.

Convenient, flexible features

  • Qualifying borrowers can receive up to 90% financing to a maximum of $500,000 in aggregate financing1
  • Terms of up to 10 years
  • Interest rates can be floating or fixed depending on your cash flow; choose monthly, quarterly or annual principal payments; interest must be paid monthly
  • A federal government registration fee is payable on each loan application

Subject to meeting Bank of Montreal’s usual credit granting criteria.
1 The maximum aggregate loan limit includes a maximum loan limit up to $350,000 for equipment & leasehold improvement financing, the government registration fee and other outstanding loans under the Canada Small Business Financing Program, and is subject to its credit and their approval process. Bank of Montreal does not represent Harris Bank and is not an agent of Harris Bank.

U.S. Loans from Harris Bank1

When your business operations in the U.S. need to extend services, purchase capital assets or expand inventory, setting up U.S. banking arrangements with our U.S. affiliate can help you reduce the paperwork and the time it takes to get the funds you need.

1 Harris Bank is a trade name used by BMO Harris Bank N.A. and its affiliates. BMO Harris Bank N.A. is a member of the FDIC. Products offered by Harris Bank are subject to their approval process.

Access to a U.S. loan expands your options south of the border

  • Ideal if your business has borrowing needs of $100,000 or less – customized loans also available for borrowing needs over $100,000
  • Term loan with predictable repayment schedule helps you plan ahead
  • Convenient access to more than 280 locations in the U.S.
  • Access funds through a Harris chequing account, special cheques, and telephone or online banking

Whether you require a commercial loan, trade financing or other business banking services, Harris Bank’s suite of solutions – and solid 125-year track record – can help you access the financing, services and guidance you need directly from a U.S. bank.

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