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Best business loans in Canada

Explore the best small business loans for various needs.

You may be on the hunt for the best small business loans in Canada to take your company to the next level. Getting a loan for a business today is a lot different to what it was 20 years ago. Now, you have options beyond banks and other financial giants, but this means that finding a lender you can trust takes a bit more effort. You can also apply for business loans customized to your specific needs, from merchant cash advances to loans designed for start-ups or longstanding companies.

We’ve narrowed down the different types of business loans on the market, how to compare the best business loans, and tips to help you find the right business loan for your individual needs.

Best for young businesses: SharpShooter Funding Business Loan

$500 - $250,000
Loan amount
Prime pricing from 9.00%
APR
6 - 120 months
Term
SharpShooter is a worthy contender for young businesses because it considers applicants who have been in business for at least 100 days, instead of 6 months which is a more common eligibility requirement. Instead, its emphasis is on your monthly income – your business must pull in at least $10,000 /month. It offers a number of different loans based on the needs of your business, including traditional business loans and merchant cash advances.
  • Receive a decision on your loan application in less than 24 hours with funds deposited into your account in less than 3 days.
  • Terms of up to 5 years, providing businesses with flexibility on repayment options.
  • Decent interest rates, starting at as low as 9%.
  • No collateral required so you don't need to put up an asset to secure your loan.
  • Low minimum credit score of 580.
  • High interest rates for longer loan terms.
  • Administration fees, which will vary depending on factors like your credit history, type of business and how much you make each year.
  • Stricter criteria for long term loans. If you are aiming for a long-term business loan, you'll need to be in operation for 12 months to qualify.
Loan Amount $500 - $250,000
APR Fee based, Prime pricing starting at 9.00%
Loan Term 6 - 120 months
Fees $35 NSF fee
$45 incoming wire fee
Turnaround Time 48-72 hours
Min. Credit Score 580
Min. Required Revenue $10,000 /month
Min. Time in Business 100 days

Best for peer-to-peer loans: Lending Loop Business Loan

$10,000 - $500,000
Loan amount
Starting at 4.96%
APR
3 - 60 months
Term
Lending Loop is Canada's first regulated peer-to-peer lending platform. Complete an online application in as quickly as 5 minutes to receive loan offers from anonymous investors interested in financing your business loan. Once you accept your loan offer, investors will begin to fund your loan on the marketplace. Your loan will be transferred to your bank account when it is fully funded.
  • Easy online application process you can complete within 5 minutes.
  • Receive funding from anonymous investors interested in financing your business loan.
  • Low interest rates starting at 4.96%.
  • Wide range of cash advance amounts ranging from $10,000 to $500,000.
  • Flexible repayment options from 3 months to 5 years.
  • Your business must make at least $100,000 in annual revenue.
  • Lending Loop does not list its fees and charges online.
  • Limited customer support if you need assistance with your business loan.
Loan Amount $10,000 - $500,000
APR Starting at 4.96%
Loan Term 3 - 60 months
Fees Establishment Fee: 1.00% - 6.00%
Turnaround Time 2 - 14 days
Min. Credit Score 640
Min. Required Revenue $8,500 /month
Min. Time in Business 12 months

Best for speed: OnDeck Business Loan

$5,000 - $300,000
Loan amount
8.00% – 29.00%
APR
6 - 18 months
Term
OnDeck offers a number of different loan options with different terms and repayment schedules, including traditional business loans, lines of credit and merchant cash advances. You can typically access the funds you receive in as little as 24 hours, making it one of the speediest lenders to issue business loans. You'll get competitive pricing based largely on your credit score and the revenue that your business earns.
  • Easy online application process you can complete within a matter of minutes.
  • Speedy distribution of funds, so you can count on getting approved and accessing funds in as little as 1 business day.
  • High loan amounts of up to $300,000 with very little documentation required.
  • No need to put up collateral to secure your loan.
  • Several loan options available, including flexible and fixed repayment options, merchant cash advances and lines of credit.
  • Your business must pull in monthly revenues of at least $10,000, with many clients expected to earn more than this.
  • Credit score requirements start at 600, even if your business makes a significant amount of revenue.
  • Start-ups can't apply
  • you'll need to be in business for at least 6 months.
Loan Amount $5,000 - $300,000
APR 8.00% – 29.00%
Loan Term 6 - 18 months
Fees No additional fees
Turnaround Time in as little as 24 hours
Min. Credit Score 600
Min. Required Revenue $10,000 /month
Min. Time in Business 6 months

Best business loan broker: Loans Canada Business Loan

$2,000 - $350,000
Loan amount
Prime Pricing from 9.00%
APR
3 - 60 months
Term
Loans Canada lets you compare lenders with one simple application using its online platform. All you have to do is fill out some information about your business along with a handful of personal details to get started. You'll then be matched up to a hand-picked list of lenders that will reach out to you to discuss your loan options. Using the Loans Canada comparison platform lets you pick the best deal for your personal situation.
  • Easy online application process you can complete within a matter of minutes.
  • You'll get quotes from multiple lenders to give you as many options as possible so you can find the best loan for your needs.
  • You can apply for as much as $350,000 in financing with a single application.
  • Free service so you can use the Loans Canada platform without incurring any charges.
  • You can consider many loan types, including instalment loans, lines of credit, commercial mortgages and merchant cash advances.
  • Your business must make at least $50,000 in annual revenue.
  • Quotes come from affiliated providers so you'll only get to choose from lenders that are partnered with Loans Canada.
  • No physical locations so you won't get any in-person customer service.
  • No online quotes
  • instead you'll need to speak to lenders over the phone to consider your loan offers.
Loan Amount $2,000 - $350,000
APR Prime Pricing from 9.00%, Long term from Prime + 2.00%
Loan Term 3 - 60 months
Fees Wire / EFT Fee up to $99.95
Turnaround Time 48 Hours
Min. Credit Score 410
Min. Required Revenue $4,166 /month
Min. Time in Business 100 days

Best for ecommerce: Merchant Growth Business Loan

$5,000 - $500,000
Loan amount
12.99% - 39.99%
APR
3 - 12 months
Term
Online lender Merchant Growth specializes in helping businesses across a range of industries like ecommerce, restaurants, automotive, retail, salons and spas, and manufacturing. It offers various types of loans, including ecommerce financing that can be used for just about anything you need for your business. You can also choose from merchant cash advances, flexible financing repayment plans, and fixed loans that are similar to traditional business loans.
  • Easy online application process with a quick decision on qualifying.
  • Quick access to funds within 24 hours after signing off on your loan.
  • High loan amounts of up to $500,000.
  • No collateral required so you don't need to secure your loan with business assets.
  • Many loan types to choose from to suit your business needs.
  • No minimum credit score required to qualify.
  • Monthly sales of at least $10,000 /month to take out a loan.
  • No home-based business allowed. Your business must have a physical location with at least 6 months left on the lease.
  • Start-ups can't apply. Your business must be more than 6 months old.
Loan Amount $5,000 - $500,000
APR 12.99% - 39.99%
Loan Term 3 - 12 months
Fees No application fees.
Turnaround Time 24 hours
Min. Credit Score 550
Min. Required Revenue $10,000 /month
Min. Time in Business 6 months

Best for merchant cash advance: Shopify Capital merchant cash advance

$200 - $2000000
Loan amount
N/A
APR
Open-ended
Term
If you're one of the many business owners using Shopify to manage your storefront and point of sale, its Merchant Cash Advance is a great option to inject capital into your company. Instead of a traditional business loan which comes with rigid terms, Shopify offers an alternative solution. Your repayments for your cash advance will be a percentage of your daily sales. That means repayments will fluctuate based on your sales for the day, which is helpful if your business is having a slow month or you need to keep cash flow open for other operational uses.
  • Shopify pre-qualifies your business and provides merchant cash advance offers you can choose from.
  • No credit check required because Shopify reviews your business's revenue, profit and daily sales before it offers funding.
  • No collateral required so you don't need to secure your loan with business assets.
  • Wide range of cash advance amounts ranging from $200 to $2,000,000.
  • Remittance is a percentage of your daily sales instead of a set monthly payment regardless of how your business is faring.
  • Early repayment option once you repay 25% of your cash advance.
  • No set deadline for when you need to repay the entirety of your cash advance.
  • Merchant cash advances do not help you build credit history for your business.
  • A daily remittance is automatically deducted from your sales until your cash advance and fees are repaid.
  • Shopify doesn't list its range of fees, but you will pay a charge for your MCA. The fee is worked into the total amount you need to repay.
  • Your business must use Shopify. Users receive and review MCA offers via their Shopify account.
Loan Amount $200 - $2000000
APR N/A
Loan Term Open-ended
Fees There is a fixed fee for your MCA, but Shopify does not disclose what the fee is online.
Turnaround Time 2 to 5 business days after submitting your loan request.
Min. Required Revenue Shopify does not list eligibility criteria online. It will contact businesses if they qualify for financing.
Min. Time in Business Shopify does not list eligibility criteria online. It will contact businesses if they qualify for financing.

Best for businesses 5+ years old: CIBC business loan

$10,000 - $1,000,000
Loan amount
N/A
APR
Up to 15 years
Term
Businesses may be able to qualify for a CIBC business loan if they can prove that they meet certain eligibility criteria, including having a significant amount of industry experience, a detailed business plan, a high credit score and a personal financial stake in your business. You'll need to prove that your business generates positive revenue, meaning your inflows exceed your outflows for at least 12 to 24 months. For this reason, established companies may be more likely to qualify for a CIBC business loan. You'll also need to be able to show that your business has the capacity to earn enough money to allow you to pay back your loan on time.
  • Flexible loan options, including secured and unsecured business loans with fixed or variable interest rates.
  • High loan amounts starting at a $10,000, up to as much as $1,000,000.
  • Long amortization periods of up to 5 years.
  • Other borrowing options, including overdraft protection or a line of credit.
  • You can't apply for a CIBC business loan online
  • you must visit a branch to get your application started.
  • No loans for less than $10,000, which may be too much for some small businesses.
  • Interest rates aren't listed online so you'll have to visit CIBC in person to see what rate you qualify for.
Loan Amount $10,000 - $1,000,000
APR N/A
Loan Term Up to 15 years
Turnaround Time Not disclosed online
Min. Required Revenue Not disclosed online
Min. Time in Business You’ll need to prove that your business generates positive revenue, meaning your inflows exceed your outflows for at least 12 to 24 months.

Best for acquisitions: Scotiabank business loan

$50,000
Loan amount
N/A
APR
5 to 10 years
Term
Scotiabank business loans are instalment-based loans that you can use to purchase fixed assets, such as real estate or business equipment. You can use your loan to finance future purchases or assets you've bought within 6 months from the loan application date. You may also be able to pay a little bit more to qualify for Scotiabank small business loan protection, which is a form of insurance that protects your payments. These loans may be backed by Scotiabank or the Canadian government, depending on what type of financing you need.
  • Easy online application process.
  • Other big banks typically don't allow online applications for a business loan.
  • Flexibility with customizing your loan with fixed or variable interest rates.
  • Lengthy terms for as long as 10 years.
  • High loan amounts of up to $50,000.
  • Other financing options available, including a line of credit or overdraft protection.
  • Financing only applies to fixed assets, so you can't use the funds to supplement your cash flow or consolidate your business debts.
  • Interest rates aren't listed online, so you'll need to fill out an application to find out what type of interest rate you'll get.
  • Your loan must be secured by the asset you purchase, which means you'll have to forfeit that asset if you can't make your payments.
  • Bad credit isn't accepted unless you can get a guarantor or you secure your loan with a personal asset, such as your home.
Loan Amount $50,000
Loan Term 5 to 10 years
Turnaround Time Not listed online
Min. Required Revenue Not listed online
Min. Time in Business Not listed online

Best for businesses with over $500,000 annual revenue: HSBC small business loans

2 to 10 years
Loan amount
Not listed online
APR
N/A
Term
With an HSBC business loan, you'll have to decide if you want a fixed or variable interest rate on your loan and then agree to make repayments on any amount you borrow according to a set schedule. You can take out an HSBC small business loan for up to $250,000 if you don't want to put up any collateral. You can also qualify for up to $1.25 million if you put up an asset like your home or cash as security. HSBC small business loans come with terms that can last anywhere from 2 to 10 years. Your business must not generate more than $5 million each year.
  • Flexible loan options with secured and unsecured business loans available.
  • Fixed and variable interest rates available.
  • Range of funds available from up to $250,000 for unsecured loans and up to $1.25 million for secured loans.
  • Flexible repayment options from 2 to 10 years.
  • No online applications allowed so you'll have to visit a branch.
  • Set-up fees that are equal to 1% of the loan amount.
  • You must have an HSBC chequing account.
  • Larger amounts must be secured by assets, such as your home or a cash deposit.
Loan Amount 2 to 10 years
Fees $20
Turnaround Time Not listed online
Min. Required Revenue below $5 million
Min. Time in Business Not listed online

Best for franchises: Canada Small Business Financing Program (CSBFP) Loan

Up to $1 million
Loan amount
N/A
APR
10 to 15 years
Term
If you need money to establish or expand your small business, you might like to consider the Canada Small Business Financing Program (CSBFP). These loans are backed by the government, so you can get access to funding you might not be able to qualify for on your own. They also come with some of the most competitive interest rates on the market. Any small businesses or start-ups operating for profit in Canada are eligible as long as they have gross annual revenues of $10 million or less. The funds can be used to buy or improve land, buy or improve new or used equipment, or to take out a lease or pay for renovations made to a leased property.
  • Funds can be used to purchase assets for your franchise, including equipment, software, or property as prime examples.
  • With a government-backed guarantee, CSBFP loans offer some of the best interest rates on the market.
  • Apply for up to $1,000,000, depending on what you need the money for.
  • You won't be able to use the loan to fund day-to-day operations like payroll, inventory or other expenses.
  • You'll need to be able to fund a portion of your purchase out of your own pocket (at least 25%).
  • You'll have to pay a 2% registration fee, plus the lender may charge any fees that they would typically charge for a conventional loan of the same amount.
Loan Amount Up to $1 million
APR Interest rates can be variable or fixed. For a variable rate, the maximum chargeable rate is the lender's prime + 3%. For a fixed rate, the maximum is the lenders' single family residential mortgage rate + 3%.
Loan Term 10 to 15 years
Fees 2% registration fee, plus the lender may charge any fees that they would typically charge for a conventional loan of the same amount.
Turnaround Time Not listed online
Min. Required Revenue $10 million per year
Min. Time in Business Not listed online

How we selected the best business loans

*We’ve chosen the products on this page based on the providers available through Finder and online in the Canadian business loans marketplace. These loans are not representative of the entire market. When choosing the best business loans, we considered each lender’s loan amounts, turnaround time, APRs, fees, transparency, customer service, ease of application and perks.

No single business loan will be the best choice for everyone, so compare your options before applying.

Where can I get the best small business loans in Canada?

Here are some of the most common types of business loan lenders, providing the best business loans:

Online direct lenders

Online direct lenders have become increasingly popular among businesses in recent years, especially as banks have stricter eligibility requirements. Online lenders might come with higher interest rates and fees, but they also have higher acceptance rates and faster turnaround times. These lenders can sometimes provide funding in as little as 24 hours and don’t have nearly as tough qualification criteria.

Peer-to-peer lenders

Peer-to-peer lenders are similar to online lenders, except they don’t provide the funding themselves. Instead, they connect you to investors who will fund your loan through their online platform.

Banks

Bank loans are the Holy Grail of business lending: Everyone seems to want one, but most business owners can’t seem to find one. Banks seem like an obvious place to go for a loan, especially if you’ve been borrowing for a long time. However, bank business loans aren’t always what they’re cracked up to be. They usually take more time to receive and sometimes require interviews or even site visits before you can even be considered for a loan.

Online marketplaces

Online marketplaces are sometimes confused with peer-to-peer lenders, but they’re not quite the same. Rather than matching you with investors, online marketplaces match you with lenders. It’s an easy way to see a wide selection of lenders, but you’re typically limited to the marketplace’s partners, and therefore not exposed to all possible lenders and loans.

How to compare the best business loans

If you’re a small business owner thinking about taking out a loan to take your company to the next level, you may be wondering how to choose the best lender and loan to suit your needs. Here are the key factors to focus on:

  • Loan amounts. What do you need financing for and how much do you need to borrow? Some lenders offer small loans starting as low as $200 while others will lend you up to $5 million if you qualify. Identify the amount you’ll need to filter out options.
  • Interest rates. The interest rates a lender will qualify you for could be the make-or-break decision for you while shopping for the best business loans. Rates could run as low as 3% and as high as 30-40%, depending on these factors. Learn more about business loan interest rates.
  • Loan terms. How much time do you need to repay your loan? Loan terms can range from 6 months to 20 years, based on how much you borrow.
  • Fees. Many small business loans come with hidden fees that can drive up the cost of your loan. Make sure you understand how much you’ll have to pay for application and origination fees as well as any ongoing annual or monthly fees.
  • Repayment options. Some loans let you pay your balance back in regular fixed instalments over the lifetime of your loan while others take a portion of your monthly sales.
  • Loan type. While traditional business loans, which provide a lump sum of funding you need to repay in fixed payments, are the most common, other loan types are available such as business lines of credit and merchant cash advances.

How to get approved for the best small business loans in Canada

You’ll need to put your best financial foot forward as you’re making your case to lenders when applying for a business loan. Increase your chances of approval and get the best rates and terms with these tips:

How to apply for a business loan

These days, you can apply for a business loan in person, over the phone or online in a matter of minutes depending on the lender you’ve decided to work with.

  1. Find the loan you and your business qualify for. Make sure your business fits the eligibility requirements for the loan you’ve set your sights on. If you’re not sure whether you’re eligible or not, contact customer service.
  2. Complete your application. Some lenders require you to book an appointment to apply for a loan while others allow you to apply online at any hour of the day. Follow your lender’s application instructions and reach out to customer service if you have any questions. Before you submit your application, review it a few times to make sure all the information is accurate.
  3. Get approved. Once again, the waiting game will vary depending on the lender you’re working with. Some online lenders provide an instant decision on your loan application and won’t keep you waiting for longer than one business day while others may take a week to provide an update on your application. Once you’re approved, you can proceed with verifying your identity and your business’s revenues before you receive your funding.

Required information and documents

When you apply, you may be asked to provide the following information:

  • Your full name, contact information and Social Insurance Number (SIN).
  • Your full business name, address, phone number and email address.
  • Your industry and the date you started your business.
  • The annual revenue of your business.
  • Your personal bank account information and income earned.
  • How much you’re looking to borrow.
  • How you intend to use your loan.

You may also need financial and legal documentation, including:

  • Bank statements
  • Revenue statements
  • Business and personal tax returns
  • Personal credit score
  • Insurance or collateral
  • Business plan

What affects the cost of your business loan?

Business financing is complex, with many moving parts feeding into the equation. For this reason, business loan costs are dependent on various factors, including your interest rate, extra fees, the lender, loan purpose, collateral, your business’s financial position, time in business and your personal finances. Learn more about the factors that can affect the cost of your business loan.

How much can I borrow?

Business loans range from as low as $200 for a merchant cash advance to as much as a couple million dollars via a secured loan with your assets on the line. The amount you can borrow will depend on the lender you choose, and personal factors such as your credit score, debt-to-income ratio and business revenue.

Across the board, you’ll be able to access more money if you have an established business, a strong credit rating and a decent amount of disposable income. You’ll be able to borrow less if you’re just starting out or if you have a poor credit history.

If you’re curious about how to qualify for more funds, read more about how much you can get via a business loan.

When should I get a business loan?

Whether you want to hire more staff, buy more equipment or take out a lease on a new property, there are endless reasons to get a business loan.

Ultimately, you should only apply for a business loan if you need one. Your business should not shoulder more debt if it doesn’t need to.

The most common reasons why businesses take out a loan include:

  • Starting a new business.
  • Buying or expanding office and retail space.
  • Buying equipment or inventory purchases for daily operations.
  • Hiring staff.
  • Investing in a business opportunity.
  • Building business credit history as you pay off your loan.
  • Buying marketing or advertising materials.

Types of loans for small businesses

Click on one of the following loans to find out which type of financing might work best for your small business.

Compare business loans in Canada

Name Product Interest Rate Loan Amount Loan Term Minimum Revenue Minimum Time in Business Loans Offered
SharpShooter Funding Business Loan
Prime pricing from 9.00%
$500 - $250,000
6 - 120 months
$10,000 /month
100 days
Unsecured Term, Merchant Cash Advance, Invoice Factoring
To be eligible, you must have been in business for at least 100 days with a minimum of $10,000 in monthly deposits.

SharpShooter provides capital to small businesses that are underserved by banks and credit unions. It measures overall business health and potential rather than focusing strictly on traditional metrics. Fill out a simple application and get pre-approved in minutes. Receive your funds within 24 hours.
Swoop Funding Business Loan
4.00% - 25.00%
$1,000 - $5,000,000
3 - 60 months
$10,000 /month
24 months
Term, MCA, LOC & more
To be eligible, you must have been in business for at least 24 months and have a minimum of $100,000 in annual revenue.

Swoop partners with banks and alternative lenders to match your business with the right funding options. Register for free and browse your offers without affecting your credit score.
Lending Loop Business Loan
Starting at 4.96%
$10,000 - $500,000
3 - 60 months
$8,500 /month
12 months
P2P
To be eligible, you must have been in business for at least 12 months and have a minimum of $100,000 in annual revenue.

Lending Loop is Canada’s first regulated peer-to-peer lending platform. Complete an application in 5 minutes. Once you accept your loan offer, investors will begin to fund your loan on the marketplace. Your loan will be transferred to your bank account when it is fully funded.
OnDeck Business Loan
8.00% – 29.00%
$5,000 - $300,000
6 - 18 months
$10,000 /month
6 months
Secured Term, Line of Credit, Merchant Cash Advance
To be eligible, you must have been in business for at least 6 months with a minimum monthly revenue of $10,000.

OnDeck offers fast and simple financing. Apply in less than 10 minutes with your basic business information and see your loan offers without hurting your credit score. Get approved within 1 business day, and choose your term, amount and payback schedule once approved.
Loans Canada Business Loan
Prime Pricing from 9.00%
$2,000 - $350,000
3 - 60 months
$4,166 /month
100 days
Unsecured Term
To be eligible, you 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).

Loans Canada connects Canadian small business owners to lenders offering financing up to $350,000. Complete one simple online application and get matched with your loan options.
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Bottom line

There is no one “best” business loan for everyone, but there are better lenders and loan types for specific business needs.

Understanding the type of loan you need is the first step toward getting a business loan that fits your unique business requirements. Check out our guide to learn more about business financing and find lenders that you and your business qualify for.

Frequently asked questions

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