7 popular business loans in Ontario

For most small business owners, their business is so much more than just their bottom line. That said, having the financial strength to stabilize and grow your business sometimes means we need a helping hand. That’s where a small business loan comes in.

For Ontarian small business owners, there are a host of great options out there beyond what the big banks have to offer. We’ve compiled a list of seven popular business loan providers to help you find the best loan for your business today.

Finder Score	APR	Loan Amount	Loan Term
1. Journey Capital
Finder score 8.6 Great Journey Capital Business Loan	Finder score 8.6 Great	8% - 29%	$10,000 - $500,000	4 - 24 months	Go to siteView details Compare product selection Compare	loading	Why we like it Journey Capital offers several different loan options with varied terms and repayment schedules, including lines of credit, merchant cash advances and more. A Journey Capital business loan typically delivers funding in as little as 24 hours once approved, with fairly competitive interest rates available for good credit borrowers. Pros & cons Pros Easy online process Funds available within one business day High loan amounts Cons Business revenue of $120,000 required Credit score must be at least 600 Not available for startups
2. Advance Funds Network
Finder score 8.1 Great Advance Funds Network Business Loan	Finder score 8.1 Great	Starting at 8.00%	$10,000 - $1,000,000	3 - 24 months	Go to siteView details Compare product selection Compare	loading	Why we like it Advance Funds Network specializes in fast business loan funding, offering a variety of business financing solutions. Originally from New York with offices in Toronto, they cater to businesses that have been in operation for at least 6 months and can show a projected annual revenue of at least $240,000 in annual revenue. Although, they do claim to have flexible eligibility criteria. Pros & cons Pros Loan funding within hours No credit score requirements Transparent terms Cons Must be in business for at least 6 months Min. revenue of $240,000 in annual revenue
3. Merchant Growth
Finder score 7.9 Great Merchant Growth Business Loan	Finder score 7.9 Great	12.99% – 39.99%	$5,000 – $800,000	6 – 24 months	Go to siteView details Compare product selection Compare	loading	Why we like it Merchant Growth offers flexible financing solutions specifically designed for small businesses, including both fixed and variable term loans as well as merchant cash advances. They provide quick access to cash—often within 24 hours of approval—with a straightforward application process. Pros & cons Pros Fast online application Funding within 1 business day Flexible repayment options Cons Requires at least 6 months in business Not available with bad credit No home-based businesses
4. Loans Canada
Finder score 8.1 Great Loans Canada Business Loan	Finder score 8.1 Great	8.99% - 35.00%	$500 - $50,000	4 - 60 months	Go to siteView details Compare product selection Compare	loading	Why we like it Loans Canada is the country's biggest lending network, allowing you to access and compare loan offers from many lenders via one simple online application. Loans Canada can offer competitive rates for good credit consumers and can match you with a small business loan provider in a matter of minutes. Pros & cons Pros Simple online application process Quotes from multiple lenders Fast funding, often within a day Cons Must have min. $120,000 in annual revenue No in-person service
5. Driven
Finder score 8.2 Great Driven Business Loan	Finder score 8.2 Great	Undisclosed	$10,000 - $500,000	3 - 24 months	View details Compare product selection Compare	loading	Why we like it Driven specializes in providing small business loans with a focus on speed and flexibility. They offer multiple financing solutions, including working capital loans and equipment financing. Their application process is streamlined, and approved businesses can receive funding in as little as 24 hours with tailored terms available, depending on your needs. Pros & cons Pros Fast online application Quick funding Flexible loan terms No hidden fees Cons Fixed rates only High rates for bad credit $84,000 in annual revenue min. revenue
6. Greenbox Capital
Finder score Not scored yet Greenbox Capital Business Loans	Finder score Not scored yet	Undisclosed	$3,000 - $500,000	6 months - 25 years	View details Compare product selection Compare	loading	Why we like it Greenbox Capital offers a variety of different business loan solutions, including merchant cash advances and small business loans. They are known for being an accommodating lender, looking beyond credit scores and factoring in the bigger picture to help you find the financing your business needs. Greenbox is also known for its fast turnaround time, with funding usually arriving within one business day. Pros & cons Pros Bad credit loans available Quick funding Flexible repayment options Cons Short term loans High rates for bad credit May require daily payments
7. 2M7
Finder score 7.2 Great 2M7 Merchant Cash Advance	Finder score 7.2 Great	0% (cost of capital fee applies)	$5,000 - $300,000	Undisclosed	View details Compare product selection Compare	loading	Why we like it 2M7 is an alternative business financing lender that specializes in merchant cash advances. They have been in business in Canada for over 13 years and boast an approval rating of 97% for applicants in need of cash funding for their businesses. Pros & cons Pros Same day funding Repayments based on cash flow No collateral needed Cons Expensive Short-term financing No traditional loans

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Small business grants in Ontario

In addition to these traditional and alternative small business loans, business owners in Ontario also have a wide array of business grants to look toward when it comes to securing funding and financial support. Here’s a look at some small business grants in the province:

1. Starter Company Plus: Offers financial advice and grants of up to $5,000 for new businesses or those expanding operations.
2. Canada-Ontario Job Grant: Provides funding for employee training, covering up to two-thirds of the total cost.
3. Northern Ontario Heritage Fund Corporation (NOHFC): Offers various grants and investments for businesses at different stages of development in Northern Ontario.
4. Eastern Ontario Development Fund (EODF): Offers grants for business expansion in Eastern Ontario, from $500k-$5M.
5. Southwestern Ontario Development Fund (SWODF): Grants for business growth and expansion in Southwestern Ontario.

Eligibility requirements for small business loans in Ontario

Generally speaking, you’re going to need to tick the following boxes to be eligible for a small business loan in Ontario:

1. Business registration. Your business must be legally registered and actively operating in Ontario with appropriate business licenses and permits.
2. Business plan. Most lenders will want to see a well-structured business plan to demonstrate your business’s goals, market analysis and financial projections. In short, you’ve got to show that you are serious about needing and using a loan.
3. Creditworthiness. Almost all lenders will want to see your personal and business credit scores. A good credit score demonstrates reliable financial management and low risk for lenders, but some are also willing to work with bad credit scores.
4. Financial documents. As well as providing a detailed business plan, lenders will want to assess your up-to-date financial records, including balance sheets, income statements and tax returns.
5. Industry. Some loans and grants may be intended for businesses within specific industries. Check that your desired lender is a suitable match for your business before applying.

How to apply

You can apply for most small business loans online, although a bank or credit union may require an in-person visit to initiate or finalize your loan application. Once you’ve started comparing options, here are the next steps:

1. Find the best loan you can qualify for. Take your time to research all your options and compare any quotes or pre-approved offers available to you. Even if you need a loan quickly to cover an emergency, it pays to do some research at this stage.
2. Follow the application process. When you’ve chosen a lender and a particular loan offer, complete the application process. Make sure you review it carefully to avoid errors or delays.
3. Get approved. The timing depends on the lender, but once you’ve been approved you’ll be informed about when to expect funding.

Required information and documents

When you apply for one of the best small business loans in Ontario, it’s likely that you’ll need to provide some of the following as part of your application:

• Your name, contact information and Social Insurance Number (SIN)
• Your business name, address, phone number and email address
• Your industry and the date you started your business
• Your annual business revenue
• Your personal bank account information and income
• How much you want to borrow
• Intended use of your loan

Depending on your chosen lender’s application process, you might also need financial and legal documentation, including:

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

Bottom line

You’ve got plenty of options for small business loans in Ontario, with lots of variety in the market. Start comparing today and take your business to the next level with the best business loans available in Ontario.

To make sure you get accurate and helpful information, this guide has been edited by Leanne Escobal as part of our fact-checking process.

Written by

Steven Brennan

Contributor

Steven Brennan is a freelance finance writer working from Vancouver, B.C. He has a BA and an MA in English Literature at the University of Ireland, Maynooth, and also spent time working in Italy and Vietnam as an English teacher. Today, he writes regularly on a range of personal finance topics including banking, loans, mortgages, insurance and tax. His work has appeared on sites such as LowestRates.ca and WealthRocket, as well as in print with Canadian MoneySaver. See full bio

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