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Emergency business loans in Canada

Get the money you need to handle unexpected expenses and keep your business afloat in an emergency.

1 - 3 of 3
Name Product Interest Rate Loan Amount Loan Term Minimum Revenue Minimum Time in Business Loans Offered
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
6.60% - 29.00%
$4,000 - $300,000
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 Canadian business bank account 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 $300,000. Complete one simple online application and get matched with your loan options.
Merchant Growth Business Loan
12.99% - 39.99%
$5,000 - $500,000
3 - 12 months
$10,000 /month
6 months
Unsecured Term, Line of Credit, Merchant Cash Advance
To be eligible, you must have been in business for at least 6 months and have a minimum of $10,000 in monthly sales.

Merchant Growth offers financing tailored to business needs. It specializes in providing capital based on future cash flows, but it also offers fixed solutions. Fill out an application within 5 minutes and get your funds within 24 hours.
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Emergency business loans let you borrow money quickly to deal with emergency expenses. You can usually access an emergency business loan within a few days of applying, and you won’t need to secure funds with collateral in most cases.

What are emergency business loans?

Emergency business loans in Canada are designed to let you access funds quickly without the need for collateral. They can be used to help businesses deal with expenses related to repairs, COVID-19 and many other emergencies.

These loans can be used for all types of expenses, such as helping you hire and retain employees, pay your business rent and maintain your regular operations. They can also help you pay for business losses related to damage or unexpected closures.

Where can you get an emergency business loan?

You can qualify for emergency business loans with banks, credit unions, private lenders and even the government. Find out more about each loan type below:

Bank loans

  • How it works.Bank business loans often come with mid-level interest rates and are safe to borrow, but watch out for strict eligibility requirements.
  • Loan types. You can get secured or unsecured loans as well as lines of credit and government loans.
  • Does my business qualify? You’ll typically need to be a Canadian resident, have a good credit score and earn a high annual revenue to qualify.
  • Where to apply. Examples of where to apply include BMO, TD Bank, RBC, CIBC, Scotiabank, BDC, HSBC, Canadian Western Bank and National Bank.
  • How to apply. Submit your application online or visit the bank in person to discuss loan options, supply the required documents to show you meet the eligibility criteria and wait for a loan decision.
ProsCons
  • Trustworthy lender
  • Good customer service
  • Straightforward loan terms
  • Large amounts
  • Longer approval times
  • Strict eligibility requirements
  • Higher interest rates than other types of lenders

Credit unions

  • How it works.Credit union business loans are often smaller and more flexible than big bank loans, but you may need to be a credit union member to qualify.
  • Loan types. You can get secured or unsecured loans as well as lines of credit and government loans.
  • Does my business qualify? You’ll typically need to be a Canadian resident, have a fair to good credit score and earn a high annual revenue to qualify.
  • Where to apply. Examples of where to apply include Meridian, Servus, Vancity, Connect First, Conexus, First West, Steinbach, Alterna Savings and Coast Capital Savings.
  • How to apply. Submit your application online or visit your credit union in person to discuss loan options, supply the required documents to show you meet the eligibility criteria and wait for a loan decision.
ProsCons
  • Trustworthy lender
  • Good customer service
  • Flexible loan terms
  • Lower fees and interest rates than banks and private lenders
  • Fewer loan options
  • Smaller amounts
  • Membership or longstanding relationship may be required

Private lenders

  • How it works. Online loans are usually easier to qualify for and may come with lower interest rates than banks (depending on your lender), but they also come with a higher risk of borrowing from a predatory or untrustworthy source.
  • Loan types. You can get secured or unsecured loans as well as lines of credit and government loans.
  • Does my business qualify? You’ll typically need to be a Canadian resident, own a business in Canada and earn a decent annual revenue to qualify.
  • Where to apply. Examples of where to apply include Loans Canada, Swoop, SharpShooter, OnDeck, Company Capital, Thinking Capital and Lending Loop.
  • How to apply. Visit the provider’s website, input your personal/business information and required documents, click submit and wait for a loan decision. Compare private lenders.
ProsCons
  • Quick turnaround times
  • Less strict eligibility criteria
  • Chance for lower interest rates
  • Bad credit financing available
  • Higher risk of predatory lenders
  • No in-person service
  • High interest rates for bad credit financing

Government funding

  • How it works. These loans are backed by the federal or provincial government and usually come with low interest rates, flexible terms and less strict eligibility criteria.
  • Loan types. You can get secured and unsecured loans as well as lines of credit and low interest financing.
  • Does my business qualify? You’ll typically need to be a Canadian resident, have a decent credit score and earn a decent annual revenue to qualify.
  • Where to apply. Apply for this type of financing with most banks and credit unions through special government-backed programs. You can check out Canada’s economic response plan for emergency financing related to COVID-19.
  • How to apply. Visit the bank in person or apply through its website, provide personal/business information and supporting documents, submit your application and wait for a loan decision.
ProsCons
  • Trustworthy lender
  • Low interest rates
  • Flexible terms
  • Large amounts
  • First come, first serve or competitive applications
  • Revolving deadlines
  • Industry-specific in some cases

What can I use emergency business loans in Canada for?

You can use emergency business loans to pay for any business-related expenses you may have due to an unprecedented emergency. For example, you might use your loan to supplement your cash flow, pay your employees, replace inventory or repair damaged equipment in the event of a natural disaster. You’ll just need to be able to prove that any expenses you use your loan for are related to your business.

Woman opening her business

Emergency business loan costs

Emergency business loans in Canada come with an annual APR that shows you the total percentage you’ll pay in interest and fees combined.

  • Interest rates. Interest rates for unsecured business loans range from 5% to 36% on average, but you’ll pay more with bad credit. You may be able to get lower interest rates with government loans.
  • Fees. Emergency business loans can include a variety of fees that will increase your repayments. These fees are summarized in the table below and can add hundreds of dollars to your total loan amount.
Fee typeTypical cost (may vary by lender)
Origination (set-up) fee2% to 7% of your loan amount
Late payment fee$5 to $25 or between 3% and 5% of the amount due
Insufficient funds (NSF) feeAround $50 or between 3% and 5% of the amount due
Prepayment penaltyVaries by lender

How to compare emergency business loans in Canada

Consider these factors before you apply for an emergency business loan to get the right fit:

  • Loan amount. Search for a lender that will give you the amount you need to pay for your emergency expenses.
  • Interest rates. Compare lenders to find the one with the lowest interest rates. Try to keep your rates under 10% to keep your repayments manageable.
  • Loan terms. Choose a short term loan (1-3 years) if you want to pay less interest overall or get a longer term loan (4-7 years) if you want lower monthly payments.
  • Fees. Keep an eye out for hidden fees, including origination or early repayment fees.
  • Repayment options. Negotiate the repayment terms that work best for you. Find out what options are available if you end up struggling to repay your loan.
  • Cash availability. Ask if there will be restrictions on how you can spend money. Consider a business credit card or line of credit if you need a steady cash flow.

How to apply for emergency business loans in Canada

You can apply for emergency business loans by following the steps below:

Application process

  1. Compare lenders. Compare at least 3-4 lenders to find the best fit for your business. Consider getting pre-approved to get a true estimate of the cost.
  2. Apply online or in person. Fill out the application on your lender’s website or visit the bank in person to apply for an emergency business loan.
  3. Fill out an application. Provide contact information and details about your business such as years in operation, annual revenue and business assets/debt.
  4. Supply financial information. Input information about the bank where you want the money transferred (such as bank name, transit number and account number).
  5. Agree to a credit check. Give your lender permission to check your personal or business credit score.
  6. Provide supporting documents. Submit required documents to verify your ID, revenue and other information about your business.
  7. Submit your application package. Submit your application and wait for approval.

Loan eligibility requirements

To qualify for emergency business loans in Canada, you may need to meet the following eligibility requirements:

  • Be at least 18 years old or the age of majority in your province or territory.
  • Be a Canadian citizen or a permanent resident with a valid Canadian address and a working bank account.
  • Have a decent credit rating (usually 650 or more) or be willing to accept much higher interest rates to get emergency business loans with bad credit.
  • Supply a registered business number and be able to prove that you’ve been in operation for at least 6 months (check out start-up loans if you don’t meet these criteria).
  • Show you can repay your loan by providing monthly or annual revenue statements or other requested documents for your business.
  • Sign a personal guarantee to assume personal responsibility for your business loan if you can’t make your repayments for some emergency business loans.

Can I get emergency business loans with bad credit?

You may be able to qualify for business loans with bad credit if your company has a high annual revenue or you can secure your loan against your business assets. Your lender will typically consider factors such as how established your business is, what type of loan you want and whether you have any other business debts. Just prepare yourself to pay much higher interest rates if you apply with bad credit.

Bottom line

Emergency business loans can help you access funds quickly to deal with unexpected or emergency expenses. You can usually access an emergency business loan within a few days of applying, and you won’t need to secure funds with collateral in most cases. Find out more about emergency business loans in Canada, compare lenders and learn how to apply today.

Frequently asked questions

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