SharpShooter Funding Business Loan

Borrow up to $500,000
- Borrow from $500
- Free online loan quote
- Quick application process
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
SharpShooter Funding Business Loan
Borrow up to $500,000
Use our curated list of loan providers below to help narrow down your options and find the right business loan for your needs.
There are several different types of business loans out there, each offering different terms and benefits. Which one is best for your business depends on its specific situation. For example, if cashflow is an issue, a merchant cash advance or invoice financing might be the way to go.
Here’s a break down of the the most common types of business loans available for Canadian businesses:
Read our full guide to the 8 types of business loans
Business loans provide your company with funding for any business-related expenses – like growth, filling in cashflow gaps and covering other expenses. With a traditional small business loan in Canada, you can typically borrow from $5,000 to $5 million at a fixed or variable interest rate typically starting at around 5%.
You repay the funds, plus interest and fees, in monthly installments, often over 5 to 20 year terms. Some business loan providers require collateral, while others offer approval based on your creditworthiness, revenue and other factors.
There are generally 3 main options where you could apply for business loans in Canada. Picking the right option for you will depend on your business needs, financial situation and preferences.
Borrowing online is significantly easier than borrowing from a bank: There’s less paperwork and a shorter application. It’s now also easier to qualify for an online business loan as a small business.
Here’s a few types of loan providers you might find online:
Best online business loan lenders in Canada
Bank loans could be a good option for established businesses pulling in at least $1 million in annual revenue and need large amounts of funding — say, over $100,000. Bank loans are provided by Canada’s Big Five Banks and other major financial institutions. These loans often come with higher interest rates and have strict repayment requirements.
Providers include BMO, TD Bank, RBC, CIBC, Scotiabank, HSBC, Canadian Western Bank and National Bank.
Compare banks for small business loans
Credit unions provide small business loans that are a little bit more flexible than big bank loans. You’ll typically need to be signed up with the credit union you want to borrow from and you may need to have an established relationship with them to qualify. Keep in mind that credit union business loan amounts are often capped at $50,000.
Providers include Meridian, Servus, Vancity, Connect First, Conexus, First West, Steinbach, Alterna Savings and Coast Capital Savings.
The Canadian equivalent to an SBA loan is a Canadian Small Business Financing Program loan, also known as a CSBFP loan. These loans are offered by certified financial institutions and backed by the Canadian Government – allowing you to qualify for loan terms you otherwise couldn’t. You can use a CSBFP loan to purchase or improve business assets like land, buildings, and equipment. But you can’t use the loan to fund day-to-day operations like payroll or inventory.
You can get this type of loan from qualified banks, credit unions, caisses populaires and other financial institutions eligible to offer loans under the CSBFP. You may need to submit a business proposal, in addition to other eligibility criteria, before you can be approved.
You can visit Canada’s Business and Industry website for more information about the program requirements and criteria. Also keep in mind that you’ll probably need a good or excellent credit score to apply.
There are a number of factors that you should consider when applying for a business loan:
Your loan |
---|
Loan amount |
$ |
Loan terms (in years) |
Interest rate |
$% |
or
Compare business loans nowBefore applying for a business loan, you should make a clear plan for how you’re going to spend the money you borrow. You should also make a budget and a repayment plan to ensure you can afford to pay your balance back plus interest. This is especially true if you plan to borrow large amounts, your revenue is seasonal or you already have large outstanding debts. Consider the pros and cons of getting small business loans below:
Here’s what you can expect to happen when you apply for a small business loan in Canada.
It varies by lender. Online lenders typically ask to see fewer documents than banks, while younger businesses are often required to provide more documents than older ones. Still there are some common documents almost every lender requests, including:
Lenders use a variety of criteria to see if you fit their lending profile when assessing your business loan application. These include the following:
The main reason businesses get rejected for loans is because lenders doubt your ability to be able to repay the loan. Some common factors that might make lenders question your repayment abilities, and consequently reject your business loan application, include:
If you do get rejected, you might want to wait until your business is more established before reapplying. Taking steps to strengthen your credit report could also help your chances of approval. Or, consider applying for a secured rather than an unsecured business loan.
If you’re having trouble getting approved for a business loan, or you don’t meet the basic eligibility requirements, consider these alternatives:
Read our guide to alternative business loans
Small business loans can offer competitive advantages over personal loans in some cases. Benefits can include lower rates, longer terms, higher financing amounts and less personal liability. Taking out a business loan may be a good fit for you if you have a well-established business that makes a significant amount of revenue. You may want to choose something else if you’re looking to start up a business or you would like to borrow money for personal use.
It depends on the type of financing you’re looking for. Bank loans can be difficult to qualify for if you have a young business or don’t have excellent credit. Online loans can have more relaxed eligibility requirements, but the most competitive rates still tend to go to businesses that have been around a few years and whose owners have excellent personal credit.
That depends on your lender. Some lenders may approve you in a matter of hours or days. Other lenders may need a few weeks to go through your application details and all of your supporting documents. An easy way to find out how long it takes is to contact your lender directly to find out about processing times.
While it can help to have a well-established business credit score, you may be able to get by with just your personal score. Just be aware that you may be required to sign a personal guarantee for your business loan if you use your personal credit score to qualify. This will make you personally obligated to repay your loan if you default on payments.
Business credit scores aren’t as widely used. The owner’s personal credit score could be better at predicting whether the business is a risk to lend to. Many business loans — even unsecured loans — also require a personal guarantee from at least one business owner, meaning that you’re responsible for paying off the loan if your business defaults.
Definitely! If you don’t have any assets to put up or you just don’t want to use them as collateral to secure your loan, you can apply for an unsecured business loan. This type of loan will use your credit score to determine if you’re eligible for financing. This means your credit score will suffer if you don’t make your repayments on time.
Learn about financing options tailored to your business’s industry.
Claire Horwood is a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, along with an Associate's Degree in Science from Camosun College. Much of Claire's coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. She has also worked extensively in the field of "Blended Finance" with the Canadian government. In her spare time, Claire loves rock climbing, travelling and drinking inordinate amounts of coffee.
Compare business financing options for quick cashflow fixes.
Tried and true advice for starting a new business.
2M7 provides up to 125% of your average monthly sales in a merchant cash advance that you’ll repay incrementally based on your daily sales transactions.
Developing a long-term relationship with your local banker can be a great investment for your business.
Compare lenders for businesses in every stage for owners with a 760 credit score or higher.
Lenders won’t reject you outright just because you don’t have the best score.
Compare top lenders for different types of business needs.
Get the best rates for your business loan when you compare lenders using this innovative online platform.
Explore ways to start or expand your business with additional funding.
The pandemic has been a real challenge for Canadian business owners and new research shows more than 1 in 10 Canadians plan to take out a business loan in 2021 as a result.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.