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The Best Canadian Business Loans

Who Offers the Best Business Loans in Canada?

Whether you're a budding entrepreneur embarking on a new venture, or a seasoned business owner with a family legacy, the need for financial support is inevitable. At some point in your business journey, you will likely find yourself in need of a loan to bridge the gap between profits and expenses, address unexpected payroll issues, or capitalize on a surge in customer demand.

In recent years, applying for a business loan online has gained immense popularity for several reasons. One significant factor contributing to this trend is the accessibility and convenience offered by online lending platforms. Unlike traditional banks that often involve lengthy processes and extensive paperwork, online lenders streamline the application process, making it far simpler for business owners in need of funding.

Monday, May 20th

2024 Canadian Business Loan Reviews

Driven Review Top Consumer Reviews Best-In-Class Blue Ribbon Award 5 Star Rating

Driven

5 Star Rating Top Consumer Reviews Best-In-Class Blue Ribbon Award

Formerly Thinking Capital, Driven has become a Canadian fintech leader, assisting 17,000+ businesses since 2006, with a $1 billion loan portfolio. The eligibility process requires a 600+ credit score, six months in business, and $120,000+ annual revenue. Quick approval and funding are just part of what businesses love about Driven, along with the flexible options of daily, weekly, or bi-weekly repayments on loans ranging from $500 to $300,000. Driven's glowing client reviews, exceptional client support, and strong industry partnerships have helped this lender maintain its top-tier position among Canadian business loan providers.

SharpShooter Funding Review 4.5 Star Rating

SharpShooter Funding

4.5 Star Rating

SharpShooter Funding deserves to be a go-to for tailored and transparent financing solutions for small- and medium-sized Canadian businesses. With a variety of loan types and purposes, from short- to long-term funding, lines of credit, and more, this lender provides options for every business need. You can access up to $250,000 with interest rates between 5.49% and 22.79%, and terms ranging from 1-5 years. They approve over 75% of applications and boast an impressive "A+" rating from the BBB, with funding available in as little as 24 hours. SharpShooter Funding stands as a reliable and supportive force for the growth of small and medium-sized Canadian businesses, earning a high rating.

Merchant Growth Review 4 Star Rating

Merchant Growth

4 Star Rating

Merchant Growth is your financial ally on a mission to make your business loan journey stress-free. Having lent over $500 million to 8,000+ Canadian businesses since 2012, they offer both term and line of credit loans, allowing you to borrow up to $800,000 - potentially within just 24 hours. With minimum requirements of 6+ months in business and $10,000 in monthly revenue, and daily or weekly repayments available on fixed financing products, they provide flexibility tailored to your cash flow. With a stellar 97% client satisfaction rate, an "A+" rating from the BBB, and a team that genuinely cares about your business, Merchant Growth stands out as a reliable and trustworthy option for business loans in Canada.

OnDeck Review 4 Star Rating

OnDeck

4 Star Rating

OnDeck, a lending platform established in 2007, has helped over 100,000 businesses across Canada, the US, and Australia, providing more than US$13 billion in funding. In Canada since 2015, OnDeck offers loans from $5,000 to $300,000, but eligibility requirements are higher than most lenders, requiring 6+ months in business, a Beacon Score of 600+, and an annual revenue of $100,000+. But, if you meet the criteria, OnDeck is a great choice for quick funding and excellent customer service in Canada.

Swoop Review 4 Star Rating

Swoop

4 Star Rating

Based in the UK with offices in Toronto, Swoop is a global financing referral service, offering a trustworthy and friendly approach to business loans in Canada. Their smart matching technology, combined with human expertise, simplifies the loan application process, empowering Canadian businesses to focus on growth while receiving hands-on help from efficient customer reps. They provide clear details on potential lenders and guide you through the funding process step by step. With a whopping 95% of users giving it a five-star rating, Swoop is a fantastic starting point for comparison shopping among business loan providers in Canada.

iCapital Review 3.5 Star Rating

iCapital

3.5 Star Rating

iCapital, a Canadian digital lender since 2007, offers business loans up to $250,000 with a 98% approval rate. Backed by DC Bank, it provides various lending products, including term loans, merchant cash advances, and possibly lines of credit. However, there are discrepancies in information on the iCapital website, especially with respect to repayment details. And, despite a decade in operation, iCapital has a "Not Rated" status with the BBB and limited customer feedback. While credible enough to earn a respectable rating from us, iCapital has a ways to go before earning a higher ranking among business loan options in Canada.

Loans Canada Review 3 Star Rating

Loans Canada

3 Star Rating

Loans Canada serves as a referral platform, connecting you with a variety of lenders for your business loan needs. The company holds an "A+" rating and accreditation from the BBB, making it a reliable option to quickly identify financial institutions that can offer funding based on your business profile. However, you'll still need to engage with your selected lender directly. You should also expect to get offers for a variety of products that may not be relevant to your company's needs. Loans Canada is a decent resource, but it's not our preferred way to get a business loan.

Loan Connect Review 2 Star Rating

Loan Connect

2 Star Rating

Loan Connect is an excellent resource with a broad network of lending partners - but none that are specific to Canadian business owners looking for a loan. All of the funding here is structured as a personal loan, which is a huge limitation in terms of how much you can borrow and what you'll pay in interest. Loan Connect has a strong reputation as a reliable way to get personal loans, but it has nothing to offer for businesses. This should be a last resort for the funding you need for your company, because it's just not set up as a business-focused service.

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Continued from above...

Online platforms provide a user-friendly interface that allow business owners to easily navigate through the loan application process. This simplicity makes it easier for individuals who may find traditional financial applications complex or intimidating. With clear instructions and helpful online support, these platforms empower entrepreneurs to take control of their financial needs without being overwhelmed.

Another reason why online loans are so popular is the speed of the loan approval process. Traditional banks may take weeks or even months to approve a loan, causing delays in crucial business operations. Instead, online lenders leverage technology to expedite the evaluation process, providing swift responses to loan applications. This quick turnaround time is particularly beneficial for small businesses that may need timely financial support to address unexpected challenges.

The question then arises: where should you seek a business loan? While your first inclination may be to approach the financial institution where you already hold personal or business accounts, convenience doesn't always translate to being the best financial option. Local banks may lack the motivation to provide the most competitive rates, and smaller banks might not possess the resources for substantial loans.

Fortunately, Canadian business owners have a range of choices when it comes to securing a loan. While local banks remain a viable option, there are reputable online lenders that simplify the application process, offering the possibility of receiving funds within a business day or two. You'll want to compare offers from both local and web-based lenders to identify the loan that offers the most favorable rates and terms for your specific needs.

Determining which lender is the right fit for your business involves considering various factors:

  • Loan application process. Evaluate the ease and speed of the application process. Can you complete it online, and how long does approval and fund disbursement take?
  • Loan requirements. Check the eligibility criteria, considering factors such as business tenure, gross revenue, and the need for collateral.
  • Loan amount and rate. Understand how much you can borrow, the interest rates, and the repayment duration.
  • Reputation. Research the lender's reputation. Look for feedback from other businesses, consider the Better Business Bureau's ratings, and seek insights from the lender's clientele.

To assist Canadian entrepreneurs in navigating these considerations, Top Consumer Reviews has diligently reviewed and ranked the best business loan providers. Our goal is to equip you with the information needed to secure the funding essential for your company's growth and success. Whether you're a startup or an established business, we hope our insights guide you toward the right financial partner. Here's to your business thriving and flourishing!

The Best Canadian Business Loans Compare Canadian Business Loans Compare Canadian Business Loan Reviews What are the best Canadian Business Loans Best Canadian Business Loan Reviews

Canadian Business Loan FAQ

Business loans are available for just about any need: equipment financing, merchant cash advances, working capital, and much more. While you'll have to provide details about your business to apply and qualify for a business loan, once you've received the funds you can usually use them for whatever your company needs.
There are several types of lenders when it comes to business loans. You could get funding through a traditional bank or credit union, either locally or online. There are also peer-to-peer lending platforms that allow smaller financial institutions and even private investors to fund business loans.
You'll definitely pay interest on your business loan. Rates typically range from 1.5% to as high as 36% APR. You may also have origination fees of up to 6% of the loan amount, depending on the lending partner you select.
That always depends on the lender. Some providers of business loans require you to have a certain length of time in business or a minimum amount of gross annual sales to even apply. It's a good idea to determine those requirements before you begin the application, to save yourself some time and hassle.
Most of the time, you can complete the entire business loan process, from application to funds transfer, 100% online. That's a huge convenience for busy business owners like you, who might be applying outside of traditional bank hours.
Most lenders offer business loans ranging from $2,000 to $500,000. The amount you're approved for will depend on the lender you select and your business situation: naturally, the longer you've been in business and the more profitable you've been, the more likely it is that you'll be approved for a large loan.
You should have the proceeds of your business loan in your account within a week. However, if you need the money sooner, look for a lender that offers next-business-day funding. And, keep in mind that those timeframes are based on when you accept the loan offer you get, not just when you finish the application. Your business loan may require extra verification steps, like documentation of income and expenses, before you receive a funding offer.
Any time you take out a loan, you run the risk of defaulting. Be sure to only borrow what you need and maybe a little extra, and have a clear plan for making on-time loan payments. Many providers of business loans offer education and counseling at no extra charge, if you could use help in determining how much to borrow and how to use the loan wisely to maintain and grow your company.
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