Loans Canada Business Loan review
Loans Canada lets you compare offers from many business lenders—all with a single application.
Avoid the hassle of researching business lenders and submitting multiple applications. Loans Canada lets you compare loan options from many providers on one convenient platform. Minimum requirements include over $10,000/month in sales, 9+ months in business and a credit score of at least 410.
Pros
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Quick online application process
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Competitive interest rates
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No collateral needed
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Available in all provinces and territories
Our verdict
Avoid the hassle of researching business lenders and submitting multiple applications. Loans Canada lets you compare loan options from many providers on one convenient platform. Minimum requirements include over $10,000/month in sales, 9+ months in business and a credit score of at least 410.Best for: Businesses in need of easy financing
- Same-day approval and next-day funding
- Apply for as much as $500,000
- Free to use
- Low credit score is okay
- High rates for low credit
- Quotes are limited to lenders partnered with Loans Canada
- Not a direct lender
What is Loans Canada?
Loans Canada is a loan referral service that lets you compare funding options from 80+ business lenders on a single platform with one application. Loans Canada is not a lender, but it saves you the hassle of researching lenders and submitting many applications to get the financing you need.
You can apply for loans of up to $500,000. Your interest rates will vary based on factors such as your credit score and how much you want to borrow.
Loans Canada offers same-day approval and next-day funding. You can take up to 5 years to pay back the money (exact terms vary based on the lender you choose). The company also offers personal loans, car loans and debt consolidation loans.
Is Loans Canada a legitimate business lender?
Loans Canada was founded in 2012 by Scott Satov (President) and Cris Ravazzano (Chief Technology Officer). Satov has been interviewed for a number of media outlets including BNN Bloomberg, Rogers TV and NEWSTALK 1010 (iheartradio).
The company is privately owned and has offices in Toronto and Montreal. It’s Toronto office is located at 1801-1 Yonge Street Toronto, Ontario M5E 1W7. Its Montreal office is located at 4000 Notre Dame W Montreal, Quebec H4C 1R1.
Loans Canada business loan features
| Product name | Loans Canada Business Loan |
| APR range | 6.60% - 29.00% |
| Minimum/maximum amount | $4,000 - $500,000 |
| Loan terms | 3 - 60 months (5 years) |
| Requirements: |
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| Fees | Interest rates vary from 6.60% - 29.00%. Some lenders may charge an origination fee. |
| Availability | All Provinces |
What we like about Loans Canada business loans
- Easy to apply. Apply within minutes.
- Free to use. You don’t have to pay anything to use Loans Canada. The company makes money from lenders whenever a loan is given.
- One application, many options. Submit a single application to view quotes from multiple lenders.
- High maximum amount. Apply for as much as $500,000 in financing.
- No credit check required to apply. Loans Canada will not perform a hard credit check when you apply. But your lender of choice may require a hard pull on your credit before disbursing funds.
- Variety of loans and repayment plans. You can apply for all types of business loans including installment loans, lines of credit, commercial mortgages and merchant cash advances. Flexible repayment options are available.
What to watch out for
- Not suitable for startups. Your business must be at least 9 months old with monthly sales of at least $10,000.
- Not suitable for home-based businesses. Applicants must have a commercial lease, so home businesses aren’t eligible for funding.
- Quotes come from affiliated lenders. You’ll only get quotes from lenders affiliated with Loans Canada, so you could miss out on better rates from non-partners.
- Process is not fully online. You’ll be contact by lenders over the phone to complete the application process.
- Minimum credit score. To qualify, you need a credit score of at least 410.
Summary of Loans Canada reviews
| BBB accredited | Yes |
| BBB rating | A+ |
| BBB customer reviews | 2 out of 5 stars based on 1 review |
| Trustpilot Score | 3.2 out of 5 stars based on 1 review |
| Customer reviews verified as of | September 20, 2022 |
Neither the Better Business Bureau (BBB) nor Trustpilot have many reviews for Loans Canada, so it’s difficult to get a consensus on what real customers think about the company. As of the time of writing, the BBB website is warning consumers that fraudulent loan companies acting as Loans Canada have been scamming customers by withdrawing funds from their accounts.
How Loans Canada compares to other lenders
What types of business loans are available through Loans Canada?
- Commercial mortgages. Borrow money to pay for land or property that you want to use for your business.
- Business line of credit. Gives you a revolving pool of money to tap into when you need it.
- Equipment and asset financing. Offers financing specifically for purchasing equipment and assets needed for business operations including vehicles. Financing is also available for implementing payment processors.
- Inventory financing. Lets you access a secured line of credit or short-term loan that can be used to purchase business inventory.
- Merchant cash advance. Borrow against incoming cash flow, and pay back your debt with a portion of your daily card sales.
- Buy now, pay later (BNPL) solutions. Break purchases down into multiple, more manageable payments.
- Barter and exchange solutions. Get what you need for your business by putting up goods and services of equal value.
- Government business loans. Get funding backed by the Canadian government to start or grow your business. This includes funding from the Business Development Bank of Canada (BDC).
Am I eligible for a loan?
To be eligible for business financing through Loans Canada, your business must:
- Be based in Canada
- Be at least 9 months old
- Be earning at least $10,000 in monthly sales
- Have an active commercial lease
You must also be at least the age of majority in your province or territory (either 18 or 19 years old) and have a credit score of at least 410. Credit score requirements may vary depending on the loan provider you choose.
How to apply for Loans Canada business loans
Applying for a business loan through Loans Canada is pretty straightforward. Here’s how it works:
- Visit loanscanada.ca, and select Apply Now at the top of the page.
- Select Business Services, then select the type of financing you need (Business Loan, Merchant Cash Advance, Commercial Mortgage etc.).
- See if there are lenders in your area. Enter the amount you want to borrow, your postal code and your business start date.
- Enter your company name, industry, gross sales information and the name of your payment processor.
- Provide personal information like your name, phone number, province and email. Select Next.
- Each loan provider you’re matched with will contact you by phone to discuss your options. Have your credit history and spending records ready to expedite the process.
- Depending on the lender you choose, you may have to provide additional documentation such as articles of incorporation and business bank account statements from recent months.
How much will a Loans Canada business loan cost?
Although interest rates vary between Loans Canada partners, you’ll generally be offered anywhere from 6.60% - 29.00%. Lower rates are usually offered to businesses with a strong credit history, high sales and low debt. The further you fall from this standard, the higher your rate will likely be. Additionally, some lenders may also charge an origination fee for setting up your loan.
Bottom line
Loans Canada makes it easy to compare many business loans and narrow down your options. The platform offers access to many different types of business financing with a variety of repayment terms, plus it’s free to use. However, minimum revenue and time-in-business requirements mean that startups and home-based businesses will need to look elsewhere.
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