Compare Business Loans

If you need extra cash flow or capital to expand your business, a business loan could be the ticket. But before you get started on the application process, compare a range of business loans to ensure you find the best loan for your needs.

Compare business loans in Canada

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Name	Product	Interest Rate	Min. Loan Amount	Max. Loan Amount	Loan Term	Minimum Revenue	Min. Credit Score	Filter Values
SharpShooter Funding Business Loan		Fee based, Prime pricing starting at 9.00%	$1,000	$300,000	6 months - 5 years	$4,166 /month	500		SharpShooter Funding offers loans up to $300,000 for small business owners who have been business for at least 100 days and can show a minimum of $4,166 in monthly deposits ($50,000/year).	Go to site More Info	Compare	loading Fetching your data...
Loans Canada Business Loan		Prime Pricing from 9.00%, Long term financing from Prime + 2.00%	$2,000	$350,000	3 months - 5 years	$4,166 /month	410		Loans Canada connects Canadian small business owners to lenders offering up to $350,000. Borrowers must have been in business for at least 100 days, have a credit score of 410+ and show a minimum of $4,166 in monthly deposits ($50,000/year).	Go to site More Info	Compare	loading Fetching your data...
OnDeck Business Loan		8.00% – 29.00%	$5,000	$300,000	6 - 18 months	$10,000 /month	600		OnDeck offers loans up to $300,000 for small business owners working in approved industries who have been in business for at least 6 months with a minimum monthly revenue of $10,000.	Go to site More Info	Compare	loading Fetching your data...

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Learn about different types of business loans and financing

Fixed Term Business Loans

Secure the financing your business needs and repay it all over a set term. Compare business loans here.

Line of Credit Loans

Your financing can be as flexible as your business. Find out how to get access to a credit line.

Business Vehicle Finance

Need to keep your business moving? Find out about a range of vehicle financing options available to your business.

Equipment Loans

If you need to move the Earth but your funds won’t stretch, you can consider an equipment loan.

Financing for high-risk businesses

Find out your financing options if your business operates in a high-risk industry.

Peer-to-Peer Business Loans

Discover how to find competitive rates through innovative financing solutions.

How do business loans work?

Businesses can either be lent a lump-sum payment or a revolving line of credit, which is repaid, with interest, over an agreed term (generally anywhere from three months to five years).

Business loans come as either secured or unsecured loans and typically allow businesses to borrow anywhere from $5,000 to $500,000, though some lenders will allow you to borrow up to $1,000,000. Most business loans come with a fixed interest rate and you will need to make repayments on a daily, weekly or monthly basis.

SharpShooter Funding Business Loan

• Min. Loan Amount: $1,000
• Max. Loan Amount: $300,000
• Interest Rate: Fee based, Prime pricing starting at 9.00%
• Requirements: Annual business revenue of $50,000

• Free online loan quote
• Borrow up to $300,000
• Quick application process

SharpShooter Funding Business Loan

SharpShooter Funding offers loans up to $300,000 for small business owners who have been business for at least 100 days and can show a minimum of $4,166 in monthly deposits ($50,000/year).

• Min. Loan Amount: $1,000
• Max. Loan Amount: $300,000
• Interest Rate: Fee based, Prime pricing starting at 9.00%
• Requirements: Annual business revenue of $50,000

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More info

Two types of business loans

• Secured business loans You will need to use an asset, generally a residential or commercial property, as security against the loan. In return, you will usually receive a lower interest rate, have the ability to borrow a larger amount and are more likely to be approved by the lender.
• Unsecured business loans You do not need to use an asset as security on an unsecured loan. As an unsecured loan represents more of a risk to the lender, you will generally be offered a higher interest rate and may be less likely to be approved for a loan, depending on the strength of your application. Unsecured loans can be beneficial for business owners who do not own an asset of value, or would prefer not to risk their personal or company property. Many online business loans are unsecured.

Quick guide to business loans

Am I eligible for a business loan? What’s the best loan for my business? How do I compare business loans? How do business loan applications get approved? We take you through your business loan application to help you get it across the line.

What’s the best loan for your business?

The best loan for your business will vary depending on a number of factors, such as:

• How much money the business needs
• The nature and structure of your company
• Whether you need one large lump sum or a series of smaller cash injections
• What your business is buying/spending the money on
• Your personal circumstances/the circumstances of any other owners or directors
• Your business’s revenue

Every business is different and will therefore have different needs and requirements. Luckily, nobody understands your business better than you do – all you need is to understand your options. That’s what we’re here for.

How can you compare business loans?

• Do you meet the eligibility criteria?

  You can find details of the eligibility criteria involved with each loan product by reading the descriptions in the comparison table or by clicking the “read more” button. Checking whether you meet the minimum eligibility criteria before you apply is the first step in your comparison process. This will help you to narrow down choices that are the most suitable for you. If you do not meet the minimum eligibility criteria for a loan, do not apply for that loan.

• How much will the business loan cost?

  If you know what loan you need, the next step is deciding what your business can afford. Look at your incomings and outgoings to see what you could comfortably repay without putting too much strain on the business. If it’s a loan for a start-up, you’ll need to rely on cash flow projections.

• Compare business loan interest rates and fees

  Once you’ve determined what you can afford to borrow, you should compare the rate and any fees or charges for a variety of business loans to find the one that represents the best value for your business.

• Do the repayment terms meet your business’s needs?

  Lenders offer repayment terms of varying flexibility. Some will allow you to repay daily, others weekly and some will require you to repay your loan monthly. Work out which will best meet your business’s needs in terms of your cash flow.

How do lenders judge your business loan application?

Lenders use a variety of criteria to see if you fit their risk profile and ensure your business can repay the loan.

• Age and turnover of the business

  Start-up financing is usually harder to find and be approved for, so if your business is established, you will find it easier to get a loan. The business turnover is also considered and lenders usually have a minimum requirement for monthly or annual turnover. They may also use your turnover to determine what the business can afford to repay.

• Credit profile

  The lender will assess the company directors’ personal credit scores as part of the application process, and if the business is established, the lender may also check the business’s credit score. Assessing credit scores allows lenders to determine how risky your business is to lend to.

• Credit card volume

  If you receive credit card payments in your business, lenders may use the volume of these payments to judge your ability to repay the loan. The assumption among some new lenders is that you will use this volume to repay the loan.

• Accounts receivable

  Similar to credit card volume, lenders may factor your accounts receivable value into their asset ratios to help them make a decision.

• Company structure

  Lenders will check what company structure you have and how long you have been in the existing structure. If you have recently undertaken a restructure or are applying for financing in the middle of restructuring, lenders may not want to finance you at this time.

• Existing debt

  Does your business have an existing debt with another lender? This will be considered as part of your application.

• Profitability

  For various business loans, including for example a revolving line of credit, your business will usually need to be profitable to be approved.

Ready to get financing? Compare business loans now

Other questions you may have

What should I avoid when applying for a business loan?

There are a number of mistakes that applicants make when applying for a business loan, from choosing the wrong loan option to submitting an incomplete application.

In terms of the type of loan, it’s always a good idea to try to think realistically about what would best suit the business in terms of financing volume, flexibility and repayments.

When it comes to submitting the documents, you should always understand what you’ll need to provide to the lender before beginning your application. Omitting or forgetting to submit vital information or documents may lead to an application being delayed or rejected altogether.

Why was my application rejected?

There are a number of reasons why a lender may reject a business loan application. It’s important to ask for feedback from your lender if they do reject your application. This feedback will give you insight into what you did wrong, which you can improve on for the next time you apply. If the lender is unable to provide this feedback, you may want to review your application and see if you can spot any red flags yourself.

Is my personal credit file checked or my business credit file?

The lender will specify which credit history they will need to check, but generally, the lender will want to verify the company directors’ personal credit histories. Your business’s financials may also be checked using accounting information that you supply as part of the application process.

What business financing options are available?

Compare a range of financing types below.

Business line of credit

You have a set limit and can use up to that limit when you need it. Repayments are flexible as long as you keep the account in good standing.

• Draw on an account balance up to an approved limit
• Lines of credit can be secured or unsecured, and more non-traditional lenders are starting to offer them

• Interest is usually charged monthly and repayments include interest plus fees

Term business loan

You can get funds that you are required to pay over a set term, which is usually between one and five years.

• Repay what you owe in full over a set period of time
• Repayments are usually daily, weekly or monthly depending on your cash flow

• Both interest and fees will likely apply

Credit card

This works just like a personal credit card except it’s for business expenses, and you can add multiple additional cardholders.

• Opt for personal or business credit cards to fund your business’s immediate cash flow needs
• Benefit from interest-free days, rewards and additional cardholders

• Interest typically sits around 19.99% if the balance is not paid back in full before the end of the grace period

Invoice financing

If you have outstanding invoices and you need them to be paid, you can sell them to an invoice financing company and receive what you’re owed minus a fee.

• Use your outstanding invoices as finance
• You can typically receive up to 70-90% of the invoice amount and choose which invoices you want to finance

• You’ll need to pay a percentage of the invoice amount

Business vehicle finance

This is a secured loan available for businesses of all sizes with leases also being available.

• Various types are available to sole proprietorships as well as small- and medium-sized businesses

• Repayment terms vary depending on the type of financing selected but competitive rates are on offer if the loan is secured

Equipment finance

There are various options available to let you purchase or lease equipment.

• Have your choice of purchase or lease depending on your business needs

• Compare costs and rates to select the right financing option for the equipment you need

Canada Small Business Financing Program (CSBFP) Loan

The Canada Small Business Financing Program (CSBFP) offers loans up to $1,000,000 that are 75% backed by the government. To apply, you’ll need to head to your bank, credit union or financial institution.

• Must be an eligible business to qualify for the program
• Can use the funds to purchase assets for your business

• Comes with a 2% registration fee, plus the lender may charge any fees that they would typically charge for a conventional loan of the same amount.

Business overdraft

Business overdrafts are attached to your business banking account and allow you to overdraw up to a specified limit on that account. You only pay interest on your outstanding balance.

• A pre-determined limit that you can overdraw up to on your business bank account
• Suitable to manage a business’s day-to-day cash flow fluctuations

• Usually comes with an application or other fee and interest is typically paid monthly when the overdraft funds are used

Trade finance

This type of financing allows you to fund the purchase of goods from domestic or international suppliers.

• Fill large orders without putting a stop to your cash flow

• You’ll be charged interest on the amount provided for each trade as well as fees

Frequently asked questions

• How hard is it to get a small business loan?

  It depends on the type of financing you’re looking for. Bank loans can be difficult to qualify for if you’re a young business or don’t have excellent credit. Online loans can have more relaxed eligibility requirements.

  The most competitive rates still tend to go to businesses that have been around for a few years and whose owners have excellent personal credit.

• What can I do with a small business loan?

  Business loans are generally limited to covering legitimate business expenses. Most loans don’t have many more restrictions aside from that.

  However, commercial, equipment and vehicle loans are designed to cover the cost of one particular item. You often can’t use part of your equipment vehicle loan for working capital — the same way you can’t use part of your mortgage to pay for a vacation.

• Can I get a business loan without collateral?

  Yes. It’s called an unsecured business loan. However, even many unsecured business loans require a personal guarantee from the business owner, which means that you’re responsible for covering the loan amount if your business fails.

  This technically isn’t collateral, because it doesn’t name any specific assets. However, it’s a risk you’re taking on as a business owner.

• Why do lenders care about my personal credit score?

  The owner’s personal credit score can be an indication 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.

• Can I get a business loan if I'm not a Canadian citizen or a permanent resident?

  It might be possible, but there are not many options. If you have a partner who is a Canadian citizen or a permanent resident, you might have a better chance of qualifying for more competitive rates if you apply with them.