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Loans for established businesses

How to find financing when your business has cemented its position.

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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It’s not only startups that need financing. If you’ve worked hard to establish your business and have had the ball rolling for some time, you still might find periods where cash flow fluctuates or times when you need to make a purchase or investment to increase your profits. This guide is for finding the right financing for those needs.

How do you define an “established” business?

Established businesses are well past the startup phase and have found a position for themselves in the market. These businesses have an existing customer base and are earning a profit that has allowed them to expand their operations. The product or service these businesses offer has been tested and is in demand in the market.

Not the stage your business is at? Explore other options:

Startups

High-growth businesses

Stagnant businesses

Businesses in decline

Common funding needs for established business

Established businesses have different funding needs to startups. These businesses are already earning a profit, so the funds they’re looking for are usually to fund a new venture, invest in expanding their operations or ease cash flow fluctuations.

  • Cash flow. Each business has cash flow challenges at one time or another, and depending on the nature of the business, established businesses can go through periods of big fluctuations that affect their profitability.
  • Investing. The investment could be to refurbish your office space, develop a new product or expand your marketing activities. Established businesses need to be able to grow just as much as startups, and financing can help businesses achieve this.
  • Expanding. If the business is growing, owners might need funds to hire new staff, purchase new equipment or move to a new business location. Business expansion funds can also be used to purchase an additional storefront location.

What types of finance are available for established businesses?

There are three main types of financing that an established business can consider using: debt finance, equity finance or funding from internal funds (business profits).

FeatureDebt financeEquity financeInternal funds
Where to find it
  • Banks
  • Credit unions
  • Alternative business lenders
  • Angel investors
  • Family and friends
  • Venture capitalists
  • Public float
  • Business cash flow and profits
How much you can borrow$1,000 to $1,000,000However much the business can raiseDepends on business profitability
What happensYou pay the debt back over the loan term with fees and interestThe financiers may hold part of your business or get a say in decision-makingYour business cash flow will be affected
Pros
  • You don’t give up control in the business
  • Established businesses are more likely to meet eligibility criteria
  • There’s a range of loan types available
  • You may be able to raise higher amounts than debt finance
  • You don’t need to repay the funds
  • Your business doesn’t take on debts
  • Investors may provide strategic benefits
  • You don’t give up any control in the business
  • You don’t need to repay the funds
  • Your business doesn’t take on debts
Cons
  • You may need to provide security for the loan
  • Business profits need to be used to repay the debt
  • Finding equity finance can be a slow and difficult process
  • You may be required to give up some control of the business
  • You may have conflicts with investors
  • You may not get the funding you require
  • This will affect your business cash flow
  • If you experience a downturn you will not have the same level of cash to fall back on

Secure funding from an angel investor to grow your business

How to compare business loans

There is a range of business loan types to compare, and it’s important to compare them and find the right one for you. Use the points below to guide your comparison:

  • Does it have a fixed term? Fixed term loans are a great option if you only want to borrow a lump sum and want to make regular repayments. If you aren’t 100% sure on how much you need to borrow, a line of credit might be more suitable.
  • How much will your repayments be? Business loan interest rates are calculated in a few ways. Find out how the lender will calculate your rate and also what ongoing costs apply to determine your repayments. This will help you compare a loan’s competitiveness.
  • What loan amounts are available? Lenders usually have a set minimum and maximum amount. Make sure the loan you need is within that range.
  • How quickly will you receive funding? Depending on why your business needs the loan, you may require funding by a certain time or date. Most new alternative lenders can give you funds in 24 hours, while banks usually take longer.

What fees and rates should I expect?

Each business loan product will come with a separate set of fees and a different type of interest rate. Here are some costs to watch out for:

  • Interest rate. The rate may be structured as a standard rate, that is, charged on your outstanding balance, or it could be a factor rate, which is a decimal figure that’s charged on your principal and doesn’t compound. Check whether the rate is fixed or variable, as well.
  • Upfront costs. See whether you will be charged an application or establishment fee, which will likely be a few hundred dollars.
  • Ongoing fees. These can be daily, monthly or annual fees and are charged as a cost for servicing the loan.
  • Late payments fees and default fees. If you fail to make a repayment on time, your direct deposit fails or you default on the loan, you will be charged a fee.
  • Other fees. See if you will be charged to repay the loan early, make additional repayments, top-up the loan or redraw additional payments.

How much does a business loan cost?

Questions to ask before deciding on finance

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