ScotiaConnect Commercial Lending

Commercial Real Estate Financing

Acquiring, constructing, or refinancing commercial property requires financing structured to the asset, not a one-size-fits-all product. ScotiaConnect commercial lending provides commercial real estate loans for owner-occupied properties, investment real estate, and construction-to-permanent projects.

Owner-occupied CRE loans through ScotiaConnect typically finance up to 80% of appraised value with terms of 10 to 25 years, amortized fully or with a balloon payment at maturity. Investment property loans carry slightly lower advance rates and are priced based on the property's debt service coverage ratio. ScotiaConnect construction loans disburse in draws tied to project milestones — foundation complete, framing complete, certificate of occupancy — with interest-only payments during the construction period and automatic conversion to permanent financing upon project completion. The ScotiaConnect lending dashboard tracks each draw request, approval status, and disbursement date so your project manager and finance team share one source of truth.

Working Capital Lines of Credit

Seasonal inventory builds, large receivable concentrations, and lumpy vendor payment schedules create working capital gaps that a term loan cannot address. ScotiaConnect working capital lines provide revolving credit that your company draws against as needed and repays as cash converts.

ScotiaConnect working capital facilities are typically structured against a borrowing base of eligible accounts receivable and inventory, with advance rates of 75-85% on receivables under 90 days and 50% on finished goods inventory. Monthly borrowing base certificates are submitted through the ScotiaConnect portal, and the ScotiaConnect lending dashboard displays your current availability — committed line amount minus outstanding draws minus any ineligible collateral carve-outs — in real time. Interest accrues daily on the outstanding balance and debits your ScotiaConnect business checking account monthly, appearing as a separate line item on your ScotiaConnect account analysis statement. For further information on commercial lending regulations, the OCC provides guidance on lending standards applicable to business credit facilities.

Equipment Financing

Capital equipment — manufacturing machinery, fleet vehicles, medical devices, IT infrastructure — represents a long-term asset that should be financed with long-term capital. ScotiaConnect equipment financing matches loan tenor to the useful life of the asset, preserving working capital lines for short-term needs.

ScotiaConnect equipment loans finance up to 100% of equipment cost including soft costs like installation, freight, and training. Terms range from three to ten years depending on asset type, with fixed or floating rate options. For assets that benefit from off-balance-sheet treatment, ScotiaConnect offers capital lease structures that meet FASB capitalization criteria while providing end-of-term purchase options. The ScotiaConnect lending team works with equipment vendors to coordinate payment directly to the supplier upon delivery verification, eliminating the need for your company to front the purchase and seek reimbursement.

SBA Loan Programs

The Small Business Administration's 7(a) and 504 programs open financing doors for businesses that may not meet conventional lending criteria — startups with limited operating history, companies with thin collateral coverage, or acquisitions where goodwill represents a significant portion of purchase price. ScotiaConnect facilitates SBA loans through experienced lending specialists who navigate the application, documentation, and closing process.

SBA 7(a) loans through ScotiaConnect provide up to $5 million for general working capital, equipment purchases, business acquisition, and debt refinancing with terms up to 10 years for working capital and 25 years for real estate. SBA 504 loans finance commercial real estate and heavy equipment with a split structure — typically 50% bank financing, 40% SBA-guaranteed debenture, and 10% borrower equity — delivering long-term fixed rates on the SBA portion. ScotiaConnect SBA lending specialists guide clients through eligibility verification, business plan documentation, financial projection requirements, and the SBA approval timeline, which typically spans 45 to 90 days from application to closing for 7(a) loans.

Term Loans

Business expansion, acquisition financing, partner buyouts, and debt refinancing fall into the category where a lump-sum term loan with predictable amortization provides the cleanest capital structure. ScotiaConnect term loans offer fixed-rate and floating-rate options with maturities from one to fifteen years.

Fixed-rate ScotiaConnect term loans lock in your interest cost for the full term, simplifying budgeting and eliminating rate risk. Floating-rate structures tied to SOFR or Prime carry lower initial rates and suit borrowers who expect to prepay or refinance within the near term. ScotiaConnect term loan proceeds disburse to your ScotiaConnect business checking account at closing, and monthly principal-and-interest payments debit automatically from the same ScotiaConnect account, with the amortization schedule and remaining balance visible at all times in the ScotiaConnect lending dashboard. Prepayment options — including partial principal reductions without penalty during open periods — are negotiated during ScotiaConnect loan structuring and documented in the credit agreement.

Lending Product Comparison

The table below compares ScotiaConnect commercial lending products across key dimensions to help identify which financing structures match your capital needs.

The ScotiaConnect Lending Process

Commercial lending through ScotiaConnect begins with a conversation about your capital need, not a form submission. A ScotiaConnect lending specialist reviews your business financials — two to three years of tax returns, interim financial statements, accounts receivable and payable agings — and structures a term sheet that outlines loan amount, rate, term, covenants, and collateral within five to seven business days.

Once the term sheet is accepted, ScotiaConnect coordinates the underwriting, appraisal, environmental assessment, and legal documentation required for closing. Most ScotiaConnect term loans and working capital lines close within 30 to 45 days. CRE and construction loans typically require 45 to 60 days due to third-party reports. After closing, the ScotiaConnect lending dashboard becomes your ongoing interface for the credit relationship: draw requests, borrowing base submissions, interest statements, and covenant compliance tracking all live within the ScotiaConnect portal alongside your deposit and payment data.