Having a credit score of 760 or higher — or excellent credit — works in your favor if you’re looking for a business loan. But when it comes to business financing, your credit score isn’t as important as it would be with a personal loan. Banks typically weigh cash flow and your time in business over the owner’s credit scores.
Best business loans for excellent credit
Best for quick financing: OnDeck Business Loan
600
Min. Credit Score
8%
Starting APR
$5,000
Loan Amount
OnDeck Canada provides fast and affordable business loans in Canada. You can borrow anywhere from $5,000 to $300,000 with terms lasting from 6 - 18 months. You’ll have to repay the amount you borrow with fixed daily or weekly amounts, and your interest rates will range from 8.00% – 29.00%. The interest you’ll have to pay will depend on a number of factors like the state of your credit, how much you borrow and the length of your term.
| Min. Loan Amount |
$5,000
|
|---|
| Max. Loan Amount |
$300,000
|
|---|
| APR |
8.00% – 29.00%
|
|---|
| Interest Rate Type |
Fixed
|
|---|
Pros
- Quick financing (get cash in as little as 24 hours).
- Large loan amounts.
- No collateral required to qualify.
- Several loan types.
Cons
- Less competitive interest rates.
- Minimum credit score of 600.
- Businesses less than six months old won’t qualify.
Best for easy access to multiple lenders: Loans Canada Business Loan
410
Min. Credit Score
Starting APR
$2,000
Loan Amount
Loans Canada makes comparing multiple lenders easy with a single, streamlined application process. Simply provide some personal information and details about your business, then get matched with a list of lenders who will contact you to discuss your loan options. Loan types vary with amounts ranging from $2,000 to $350,000, and terms of up to 5 years. Interest rates vary based on your credit score, how long you've been in business and other factors.
| Min. Loan Amount |
$2,000
|
|---|
| Max. Loan Amount |
$350,000
|
|---|
| APR |
Prime Pricing from 9.00%, Long term financing from Prime + 2.00%
|
|---|
| Interest Rate Type |
Fixed
|
|---|
Pros
- Access to multiple lenders through a single application
- Personalized loan options based on your business's needs
- Loans for a wide variety of credit scores, even bad credit
- Available in all provinces
Cons
- Must have at least $50,000 in annual revenue
- Must have been operating for at least 100 days
- Not suitable if you want to borrow small amounts under $2,000
Best for low-interest loans: SharpShooter Funding Business Loan
670
Min. Credit Score
9%
Starting APR
$500
Loan Amount
SharpShooter Funding offers loans for small business in amounts from $500 to $500,000 with terms ranging from 6 months up to five years. Just be aware that you’ll need to have been in business for at least 2 years with a monthly revenue of at least $10,000 to qualify for these loans.
| Min. Loan Amount |
$500
|
|---|
| Max. Loan Amount |
$500,000
|
|---|
| APR |
Fee based, Prime pricing starting at 9.00%
|
|---|
| Interest Rate Type |
Fixed
|
|---|
Pros
- Fee based loan
- Large loan amounts
- No collateral required to qualify
- Terms lasting up to five years
Cons
- Steep competition for funds
- Strict eligibility criteria
- High annual revenue requirements
Best for peer-to-peer financing: Lending Loop Business Loan
600
Min. Credit Score
4.96%
Starting APR
$1,000
Loan Amount
Lending Loop Business Loan is Canada's first fully regulated peer-to-peer small business lending platform. If your business meets minimum credit criteria, the company's credit assessment team will review your loan application and assign your business a loan grade ranging from A+ to E. Your loan request will be published on a marketplace to be reviewed and funded by various lenders. You can apply for loans of up to $500,000 with repayment terms of up to 5 years.
| Min. Loan Amount |
$1,000
|
|---|
| Max. Loan Amount |
$500,000
|
|---|
| APR |
Starting at 4.96% per year
|
|---|
| Interest Rate Type |
Fixed
|
|---|
Pros
- Loans available from $1,000 to $500,000.
- Low APRs starting at just 4.96% for qualified borrowers.
- No early repayment penalty fees.
- Sole proprietors can apply.
Cons
- Loan requests are published on the marketplace for up to 30 days, so it could potentially take that long to get fully funded.
- Requires at least $100,000 in annual revenue.
- Must have been operating for at least 12 months.
How we picked the best business lenders
These lenders represent some of the more flexible and transparent options available to borrowers with excellent credit. To compile our list, we considered the loan types available, minimum and maximum APR, repayment terms and the loan amount.
The best bank loan for excellent credit might be your local bank
Community banks can be a great option for small business owners that want to develop a strong, long-term relationship with a lender. Community bank loan officers are experts in your area’s business marketplace and can become a partner in growing and developing your business safely.
It might take a few weeks to fund your first loan. But once they get to know your business, your lender should learn to anticipate your business’s financing needs so you never need an emergency loan.
Other business loans you can apply for today
How to choose the best lender for your business
The best lender for your business depends on several factors, such as what type of financing you need, the time you have to spend on the application and what your business can qualify for. Follow these steps:
- Define your priorities. Ask yourself questions to figure out what’s the most important to you. For example, are low rates more important than speed? Knowing what you want out of a lender is key to narrowing down your choices.
- Compare types of lenders. Start your search by comparing different types of business financing and lenders to see which offer the type of financing you need — and which might accept your business.
- Compare actual lenders. Rule out any lenders that don’t offer the rates, terms and loan amounts you’re looking for or any provider you definitely can’t qualify with.
- Prequalify. Reach out to your top choices to get an estimate of the types of rates you might receive. With some lenders, you can prequalify by filling out an online form. Others might require a phone call.
Bottom line
Fair credit won’t stop you from qualifying for one of these top business loans. But you should still explore your full range of options to ensure you’re making the right financial move for your business.
