Our reviewers evaluate products and services based on unbiased research. Top Consumer Reviews may earn money when you click on a link. Learn more about our process.

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.

Friday, June 21st

2024 Canadian Business Loan Reviews

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

Driven

5 Star Rating
  • Over 700 5-star reviews from very satisfied clients
  • Worked with more than 17,000 small- to medium-sized Canadian business since 2006
  • Has funded more than $1 billion in loans
  • Loans available from $500 to $300,000 with daily, weekly, or bi-weekly payments
  • Terms range from 2-24 months
  • Funding available in as little as 24 hours
  • Minimum requirements: in business for at least 6 months, credit score of 600+, annual revenue of $120,000+, have a business bank account
  • 24 hour support
Top Consumer Reviews Best-In-Class Blue Ribbon Award

Formerly known as Thinking Capital, Driven has established itself as a pioneering force in the Canadian fintech industry, supporting over 17,000 small- and medium-sized businesses since its inception in 2006. With a lending portfolio exceeding $1 billion, Driven provides a range of fixed and flexible funding options, accommodating daily, weekly, and bi-weekly repayment terms.

Do you meet the eligibility criteria?

Driven's eligibility criteria require you to have a 600+ FICO score, at least six months in business and an annual revenue of at least $120,000. Not sure if you're eligible? You can always enter the amount of the funding you need and the length of time you've been in business, plus your contact info and the purpose of your loan. If you meet the basic criteria, you'll get a "congratulations" message and a link to continue your application.

Apply in 10 minutes or less

You'll then complete a brief 10-minute online form after creating an account on their platform. You can even connect to QuickBooks to make it go faster. The verification process involves confirming your account via email, so no fakes allowed if you're serious about getting a business loan. After providing basic business information, contact details, and financing needs, you may need to upload a government-issued photo ID and a void cheque from your business account. Depending on the loan amount, additional documentation may be necessary. Expect confirmation within 24 hours, and if approved, funds could be accessible within 48 hours.

Lots of advantages

While you'll have to sign up for an account at Driven (or call for a consultation) to determine the details of your particular business loan, there are some big perks offered by this Canadian lender that put it above the competition. First off, you can borrow as little as $500 or as much as $300,000, a much broader range than most institutions offer. Your repayment terms could be daily, weekly, or biweekly, and the term of your loan could extend over 2, 3, 4, 6, 9, 12, 18, or 24 months. The Driven team will work with you to create a total package that makes sense for your business: one that will help you get the funding you need now, without putting you in dire straits down the road. There's even an express option to get funding of up to $20,000 quickly.

Best Canadian Business Loans

All the benefits of both term and line of credit loans

And, the way Driven structures its business loans is somewhat of a line of credit hybrid. When you finish your application, you'll know the total amount you're approved for, but you can borrow only the amount you need at the time. Each draw you make comes with its own fees and terms, clearly disclosed at the time, and only the amount you borrow is counted as a loan in your credit history (not the total pre-approved limit).

Business owners get the funding (and support) they need

Driven's reputation is rock-solid, due in part to the lender's partnerships extending to major financial institutions like Alterna Bank, Meridian, and Moneris. Although we still didn't find a Better Business Bureau rating for Driven, client feedback is plentiful and enthusiastic. Out of nearly 850 client reviews, 92% rated Driven with 4 or 5 stars. Clients praise the business loan experience here from start to finish, describing it as "timely," "transparent," and "supportive." The customer service team also receives accolades (often by name) for their friendliness, knowledge, and professionalism.

New name but still #1 for business loans in Canada

The team at Driven knows exactly how to help your business with the funding to grow, adapt, or take care of the unexpected. You can trust that you'll get the guidance you need if you apply for a business loan here, and that you'll have a dedicated support team on your side. Driven may have a new name, but they've kept their former first place spot on our list of options for Canadian business loans.

SharpShooter Funding Review 4.5 Star Rating

SharpShooter Funding

4.5 Star Rating
  • Loans available from $1,000 to $300,000
  • Multiple lending types available, including short- and long-term funding, line of credit, and more
  • Interest rates ranging from 5.49% to 22.79%
  • Terms ranging from 1-5 years
  • Available in all Canadian provinces and territories
  • Approves over 75% of applications
  • Funding in as little as 24 hours
  • "A+" rated by the BBB
  • In business since 2015

Established in 2015, SharpShooter Funding is dedicated to providing small- and medium-sized Canadian businesses with tailored and transparent financing solutions. Committed to responsible business lending, the company prioritizes truthfulness, clarity, and customer-centric values. Leveraging cutting-edge data science, technology, partner relationships, and customer support, SharpShooter Funding accelerates access to right-sized capital solutions for Canadian business owners.

You need a loan, they've got it

SharpShooter really excels when it comes to variety in business loan types and purposes. Just click on their Funding page and you'll see all of this and more on the list:

  • Bank Only EFT
  • Long Term Funding
  • Business Capital Advance
  • Commercial Funding
  • Working Capital
  • Fixed Funding
  • Bridge Funding
  • Unsecured Business Funding
  • Flex Funding
  • Business Expansion Funding
  • Short Term Working Capital
  • Business Line of Credit

No-cost consultation

Not sure what you need? Just reach out. Either call the toll-free number or fill out the online form with your requested amount, intended use of funds, contact info, and so on. SharpShooter will give you a no-cost consultation to help you figure it out. Generally speaking, though, you can expect to be able to access up to $250,000, with interest rates ranging from 5.49% to 22.79% and terms ranging from 1-5 years.

Borrow up to $250K (or is it $300K?)

The one little discrepancy we found on the SharpShooter site is in the maximum loan amount: on one part of the main page, it said funding can be extended up to $300,000, while a $250,000 amount was cited later on. That's just FYI, if you think your business may be aiming to borrow towards either of those upper limits.

Best Canadian Business Loans

No strict eligibility requirements

Over 75% of applicants are approved for business loans at SharpShooter. And, once you've been approved, you could get your loan proceeds as quickly as 24 hours. Other benefits of going to this lender for your borrowing include the fact that they don't require you to have a specific credit score, length of time in business (startups welcome), or to not be doing business within a particular industry.

Exceptional reputation

Too good to be true? Not at all. The Better Business Bureau gives SharpShooter Funding an "A+" rating, and there were no complaints filed there over the last three years. You could also take a look through page after page of testimonials on the SharpShooter site: yes, of course, those are curated by the lender, but the names of the businesses and their owners are right there for you to see (and google...). Besides, they confirm what we found on third-party sites (including some of the business loan referral services/databases we reviewed separately): from fledgling entrepreneurs to well-established companies, clients praise everything about the process with SharpShooter.

Fantastic funding choice for Canadian businesses

Going beyond traditional metrics, SharpShooter Funding assesses the overall health and potential of your business, working closely to understand your short-term needs and long-term goals to match you with the most suitable financing options. In essence, SharpShooter Funding stands as a supportive force behind the growth of small- and medium-sized Canadian businesses, earning a high rating from us.

Merchant Growth Review 4 Star Rating

Merchant Growth

4 Star Rating
  • Both term and line of credit loans available
  • Over $500 million lent to 8,000+ Canadian businesses since 2012
  • Borrow up to $800,000 in just 24 hours
  • Minimum requirements: 6+ months in business, $10K in monthly revenue
  • Daily or weekly loan repayments available on fixed financing products
  • "A+" rated and accredited by the BBB

Embarking on the quest for the perfect business loan can be a daunting task, but fear not - Merchant Growth is here to make your financing journey accessible and stress-free. This Canadian financial ally is on a mission to provide business owners like yourself with the most convenient and flexible funding solutions available. Since 2012, they've lent over $500 million to more than 8,000 companies nationwide.

Borrow up to $800K

Whether you run an e-commerce empire or a brick-and-mortar business, Merchant Growth has tailored solutions to suit your unique needs. Offering fixed financing options as well as lines of credit, the diverse array of choices here ensures you'll find the perfect fit for your business. And, with an upper limit of $800,000 in lending options, even bigger-than-average small businesses have a chance at getting those big dreams financed by Merchant Growth. To join the Merchant Growth family, you'll need a minimum of six months in business and a monthly revenue of $10,000. Daily or weekly repayments are available for fixed financing products, providing the flexibility that suits your cash flow.

Get ready to get specific

It'll take you under 10 minutes to fill out the initial application. You'll be asked the usual questions about your business (how long you've been in operation, annual revenue, and so on), but Merchant Growth takes it a step further by asking you to authorize connection with your business bank account. That might seem a little scary, but you can read through all of the information about how your data is kept secure and what's collected. Of course, you can also click on "connect my bank later" if you're just not feeling comfortable yet.

Funded faster with a connection

Merchant Growth is quick to point out that you'll be funded faster with that connection, as well as if you complete the following page's tasks: reviewing the terms and conditions, uploading a void cheque, and uploading the last 6 months of bank statements. That's par for the course with most Canadian business loan providers, but this one lets you know right away that it's part of the process. Again, you can submit your application without it; either way, you'll be waiting for a loan specialist to reach out with your specific offer(s) and to ask and answer any remaining questions.

Best Canadian Business Loans

Where does your application actually wind up?

One part of the process here that caught us off guard: after we submitted our application and got the message about being contacted by a Merchant Growth representative, the screen refreshed and took us back to the main page. We weren't given any kind of login information (in fact, we'd never even been asked to choose a password), so it left us wondering where our application had gone. We didn't see anywhere to sign in or to continue uploading documents. It felt a little as if we'd sent sensitive data out into the ether with no way to call it back.

Your partner in growth and success

Reputation matters, and fortunately Merchant Growth shines in this department. With a stellar 97% of clients leaving 4- or 5-star reviews, the consensus is clear - this is a lender that delivers. Repeat customers praise the no-hassle online document signing and swift business loan funding, testifying to the reliability of Merchant Growth over the years. Many clients describe the experience as having a support team at the ready: rather than just dumping funds into your bank account and walking away, your Merchant Growth reps will come alongside you, demonstrating their genuine care for your business and interest in seeing you succeed. The Better Business Bureau agrees, giving this lender a perfect "A+" rating and accreditation.

Trustworthy lender for Canadian businesses

In the vast sea of lending options, Merchant Growth stands out as a trustworthy beacon. With easy-to-meet eligibility requirements, much higher than average loan amounts on offer, a stellar reputation, and a genuine desire to see businesses thrive, they've earned their stripes as a reliable option for business loans in Canada.

OnDeck Review 4 Star Rating

OnDeck

4 Star Rating
  • "A+" rated and accredited by the BBB
  • Available in all Canadian provinces and territories
  • Loans and lines of credit available from $5K to $300K
  • Minimum requirements: 6+ months in business, Beacon Score 600+, annual revenue of $100K+, need to have a business bank account
  • Cannot work with some industries (firearms vendors, non-profits, religious/civic organizations)
  • Daily or weekly repayments

Are you a small business owner seeking financial support and empowerment? OnDeck, a lending platform that kicked off in 2007 with the explicit goal of assisting small businesses, might be the solution you've been looking for.

Funded over 100,000 companies

Operating across Canada, the United States, and Australia, OnDeck has already helped over 100,000 companies access funding totaling more than US$13 billion. In Canada since 2015, OnDeck has established a fruitful partnership with Evolocity Financial Group, enabling it to offer business loans throughout all provinces and territories across an impressive 700 different industries.

Stricter than average eligibility requirements

Before you get too far, though, you should know that OnDeck's eligibility requirements for their three types of business loans (traditional term, line of credit, and flex funds) are higher than most of the lenders on our list. You'll need to have been in business for at least 6 months, have an annual revenue of $100K+, have an open business bank account, and have a Beacon score of at least 600. OnDeck also confirms that their "typical customer" profile is even higher than that, with annual revenues of $500K to $1MM and a Beacon score in the 640-720 range.

Best Canadian Business Loans

Some industries excluded

There's also a list of industries within which OnDeck doesn't offer business loans: if you work within the realm of Adult Entertainment, Firearms Vendors, Lotteries/Gambling, Non-Profits, Religious/Civic Organizations, Rooming/Boarding Houses, or Money Services Businesses, you won't be eligible for funding here, no matter how long you've been in operation.

Easy application process

If you do meet OnDeck's criteria, just jump right in and click the "apply now" button. This is used for all of their business loan types, no matter which one you think might suit you best in the end (though you can pick one if you already have something in mind; that's on the third screen as you go through the online form). Once you've cleared the eligibility questions, the rest of the application contains the usual requests: name, industry, average monthly sales, and so on.

Can connect directly with your bank to verify financials

On the "Final Application Details" page, OnDeck will ask you to let them connect to your business bank account after you verify your primary payment processor (such as PayPal or WooCommerce). If that's not something you want to jump into right away, you can opt to upload 12 consecutive months of bank statements instead. Once that's done, you'll get a confirmation screen with an approval number and the reassurance that an OnDeck rep will follow up with you shortly.

Best Canadian Business Loans

Borrow up to $300,000

In the past, OnDeck offered preliminary loan quotes as a part of this process, using a calculator to run the numbers on various borrowing scenarios. Not anymore, apparently - but that's no different from most of their rivals in the business loan marketplace. Broadly speaking, however, you can borrow from $5,000 to $300,000 here, whether you choose a line of credit, flex funding, or a traditional term loan. You'll just have to wait for your OnDeck rep to reach out, to learn exactly what your business qualifies to receive.

Business owners give OnDeck lots of praise

Both domestically and abroad, OnDeck gets high marks. The Better Business Bureau continues to give the global headquarters an "A+" rating and accreditation, and the primary Trustpilot listing for the company displays an impressive 3,700+ five-star ratings. Even hopping over to the Trustpilot profile specific to OnDeck's services in Canada, there wasn't a single business owner rating below 4 stars. Headlines include encouraging phrases like "did an amazing job getting my company loan in under a month" and "awesome company to deal with" . It's encouraging to see five-star ratings from repeat clients who have used OnDeck for both term loans and lines of credit over the years; they say that there are no surprises, the approval and funding process are quick and easy, and that communication throughout is clear and constant.

Great choice (if you qualify)

If you can meet OnDeck's minimum requirements, it emerges as a top choice for business loans in Canada. With quick funding, several loan types to choose from, and a reputation for excellent customer service, OnDeck positions itself as a reliable ally for small businesses seeking financial support.

Swoop Review 4 Star Rating

Swoop

4 Star Rating
  • Global business loan referral service
  • Loan amounts vary based on the lending partner
  • Hands-on help from friendly, efficient customer reps
  • Company is based in the UK with offices in Toronto
  • 95% of users give the platform a five-star rating

Swoop positions itself as your virtual CFO, emphasizing a safe, straightforward, and friendly approach to business loans. With a combination of smart matching technology and real human expertise, they prioritize your security while offering a range of funding solutions.

Simplifying the process

Swoop aims to demystify financial jargon, empowering businesses to thrive. From an outsider's perspective, Swoop stands out for simplifying the loan application process, allowing Canadian businesses to focus on growth. The promise of funds within as little as 24 hours adds a practical touch to their commitment to making the financial journey accessible and successful.

Helps you compare your options with multiple lenders

You should understand from the get-go that Swoop is a referral platform. When you enter your business information and create an account, you'll be matched with trusted partners who can fund the kind of loan you're looking to take out. Some of the lenders in Swoop's network are reviewed separately on our list (like OnDeck and Merchant Growth), as well as several other big and small names in Canadian finance.

Can access business loans of all types

That's good news, though, because it means you can potentially access every imaginable type of business loan here, from traditional term funding to lines of credit and more. And, even if you have less-than-perfect credit or haven't been in business for a long time, chances are good that Swoop has a lender in their database that's willing to work with you.

Best Canadian Business Loans

All the usual questions

When you click the "Get Started" button, you'll be asked a series of questions. Are you starting a new business, trying to grow your business, or wanting to refinance debt? You can always click on "I'm not sure yet" too. From there, expect the usual fill-in-the-blank of your business name, revenue over the last year, and so forth. Also, plan on taking some time to provide an actual description of your funding needs.

Get matched quickly

For the imaginary Canadian business owner we used as a profile on Swoop, four lending matches came up: three from the Government of Canada, and one from iCapital (who we've reviewed separately on our list). The details were easy to see, from the amount we could potentially borrow and at what interest rate, to the timeframe we could expect our funding to be completed.

Kudos for transparency

If you see a loan match that gets your attention, we encourage you to click for more details. We love how clearly Swoop spells everything out. The best part is "The Funding Process" , which takes you step by step through what you can expect, from registering your interest with the lender (namely, by clicking that button on the Swoop platform) to sharing documents, discussing funding options, and completing the official application for your business loan.

Best Canadian Business Loans

Help is at the ready

You'll also be likely to get a reach-out from one of Swoop's "Relationship Managers" . It's a great way to get answers to questions you have, to discuss your business needs, and get some expert advice on which direction to take your business funding.

Lots of five-star reviews

You can trust that input, as well as everything else you experience on the Swoop platform, to have your best interests in mind. People from around the world (because Swoop has offices globally) have nothing but love for this funding referral service: over 95% of those who left feedback on Trustpilot gave Swoop a perfect five-star score. Our favorite comment from a Canadian business owner said that their Swoop rep was patient and understanding as they went back and forth for more than a year, deciding on which financing was right for their business.

Best of the business loan comparison platforms

Overall, Swoop is our favorite option for comparison shopping among business loan providers in Canada. The process is straightforward, they match you with some of the most trusted lenders on our list (and even some that aren't), and it's a great time-saver to check out multiple lending options at once. But, since you'll still have to go through the process of completing the application and getting approval from the lender you choose, Swoop is more of a (fantastic) starting point than a finish line.

iCapital Review 3.5 Star Rating

iCapital

3.5 Star Rating
  • Borrow up to $250,000
  • Get a term loan, merchant cash advance, secured business loan, or line of credit
  • 98% approval rate
  • Funding typically within 48 hours
  • Eligibility requirements: in business for at least 6 months, over $100,000 in annual sales
  • Daily or weekly repayments
  • Backed by DC Bank
  • In business since 2007

iCapital is a digital-only lender offering business loans in Canada. In operation since 2007, the platform is backed by DC Bank and is available to companies throughout the nation. iCapital is a proud member of the Canadian Federation of Independent Business and the Ontario Chamber of Commerce.

Multiple loan types and easy-to-meet eligibility criteria

There are several lending products available to businesses here, which may include traditional term loans, merchant cash advance, line of credit, and secured (for homeowners who want to use their property as collateral). With iCapital, you can borrow up to $250,000 as long as you have been in business for at least 6 months and you bring in over $100K in annual sales. It was interesting to note that iCapital's term loans have a flat fee (that they don't disclose upfront), rather than an interest rate.

Some inconsistencies

But, there were some discrepancies as we browsed the information for iCapital's term business loans that caught our attention. For example, at the top of the page it says that these one-time loans can be repaid in a set amount daily or weekly over a period lasting up to 24 months; however, the FAQ called it a micro loan and described daily payments over terms of up to 12 months, and in yet another place it described repayments being taken five days a week.

Loan options and details can get confusing

And, when we clicked on the "More Info" button on the Line of Credit option, we were taken to a separate page (with a copyright date back in 2020) that started out describing secured loans, which wasn't what we were expecting. Unlike the term loan page, there was no FAQ or easy-to-view qualification criteria here; we had to click through the prequalification questions to determine that line of credit loans require monthly sales of at least $10,000, and after that iCapital jumps right into the application. We're not sure that line of credit is even still an option; in other places on the site, we didn't see it mentioned. Instead, iCapital described merchant cash advances and loans secured by the primary residence of the business owner. You'll want to click around and see what exactly is on offer here, when you're ready to apply for a business loan.

Best Canadian Business Loans

Where's the feedback?

We were surprised to see that, despite being in operation for over 10 years, iCapital has a "Not Rated" status with the Better Business Bureau, with the BBB saying they don't have enough information to issue a grade for the company. That tracks with what we found (or, rather, didn't find) elsewhere: not a lot of feedback from small business owners regarding their experiences getting funding via iCapital. Even the company's 50+ glowing reviews on Facebook turned out to be primarily the spammy kind (you know, the ones that talk about Forex Trading and invite you to reach out on WhatsApp...). And, on Trustpilot, the most "recent" review was back in 2022, with the rest being from 2016 and earlier.

Some big brands in the portfolio

All of that is really hard to reconcile with iCapital's list of clients, which include DQ, Jiffy Lube, Esso, Mac's, and several other big-name brands. Maybe that's because DC Bank is the actual lender behind the iCapital platform, and that financial institution does have an "A+" rating from the BBB? Still, if iCapital really is doing the kind of volume you'd expect from a business loan provider that has major companies among its clients, why aren't we seeing hundreds (or even dozens?) of reviews from small business owners?

Good but not great

We give iCapital a slightly better-than-average rating because we're sure they're on the up and up, and they very well can connect you with funding specific to small businesses (unlike some of the options on our list that rank lower). But, to move any higher here, iCapital needs to do a better job of clearing up some of the discrepancies we found throughout the process, and maybe disclosing more details (like the flat fees business owners should expect to pay when taking out a loan). And, it would help to see iCapital landing on the radar of more small business owners (or at least convincing them to get out there and leave more feedback).

Loans Canada Review 3 Star Rating

Loans Canada

3 Star Rating
  • Referral platform available to businesses in most Canadian provinces and territories
  • Borrow up to $500,000
  • Interest rates starting at 6.99%
  • Same-day approval, next-day funding available
  • "A+" rated and accredited by the BBB
  • In business since 2012

Founded in 2012, Loans Canada proudly stands as a pioneer in the realm of business loan comparison platforms, offering its services to entrepreneurs across most provinces and maintaining a 100% Canadian ownership. Functioning as a reliable referral provider, the platform facilitates connections between business owners and lenders through an extensive network. The primary goal is to empower business owners with the knowledge needed to make informed decisions and take command of their financial well-being.

Fantastic resource for lender research

One thing we appreciate about Loans Canada is that prospective clients can use it to get information about today's most popular lenders, even without using the service to borrow money. Right on their main Business Loans page, Loans Canada gives you the scoop on Thinking Capital (now known as Driven), SharpShooter, OnDeck, and many other lenders. You'll spot some of those reviewed separately here as well. Why not take advantage of their research and other business owners' feedback before committing to any particular lender?

Helpful info on various business loan types

We also like the way Loans Canada provides insights into various types of borrowing that businesses may need: traditional business loans, commercial mortgages, business lines of credit, equipment financing, and so on. If you know you need money but you're not quite sure what type of business loan is right for your situation, be sure to read through this section of the Loans Canada website.

Best Canadian Business Loans

Your loan depends on the selected lender

Broadly speaking, this service can connect you with lenders willing to offer up to $500,000 in funding, with interest rates starting at 6.99% APR as of the time of this review. Your loan's details will naturally depend on your business profile and the lender you ultimately select, but many clients receive same-day approval and next-day funding.

No surprises in the application

To find out what Loans Canada's lending partners can offer, you'll start by entering your desired funding amount, your business' postal code, and the date your business got started (interesting point: if your business dates back to before 1973, you won't be able to enter it on the form). You'll then be told if you qualify to continue, though the site doesn't specify what will or won't disqualify you. From there, enter your company name, gross monthly sales, gross sales from debit/credit cards, industry, and payment processor. Finally, you'll be asked for your contact information; you may want to leave the box unchecked if you'd rather not receive "news, updates and promotions... including third party promotions" (and kudos to Loans Canada for not forcing applicants to consent to that).

Just one match?

For the business profile we entered, we were matched with just one lender. It's hard to say if that's the way Loans Canada always does things (a single provider match) or if it was the best match for the details we provided. We were also told that we should prepare for a call from the lender by having the most recent copy of our credit score ready (along with a link to get the credit report if we needed it). Or, you have the option to enter that score directly if you already know it.

Best Canadian Business Loans

Lots of offers for services you may not want

On that final page, you'll probably be offered a ton of "additional services" to wade through, from fraud and identity protection to financial education programs. It felt a little spammy, to be honest, and it was frustrating to not be given any further information on our business loan: we still had to either wait for a call from the lender we were matched with, or take matters into our own hands to reach out.

"A+" from the BBB

Reputation-wise, we have no concerns about Loans Canada. Neither does the Better Business Bureau, who gives the platform a perfect "A+" rating. There just isn't a lot of feedback, beyond the reviews of individual lenders (which typically have just a couple dozen ratings) and the Google reviews mentioned on the Loans Canada site (that we couldn't track down on Google itself).

Not the best referral platform out there

While Loans Canada can be an asset in helping you evaluate lenders prior to signing up for a business loan, it's not our favorite way to get funding. The process is a little more cumbersome here than we found with rival services, and you'll get a lot of pitches to sign up for things that are only marginally related to the funding you're seeking.

Loan Connect Review 2 Star Rating

Loan Connect

2 Star Rating
  • Loan referral service accessible to all Canadian residents
  • Loans are structured as personal loans, even for business purposes
  • Loans available in the range of $500 to $50,000 with terms spanning 6-60 months
  • APRs varying from 8% to 46.96%
  • Repayment terms from 3-120 months
  • Inclusive of all credit score ranges
  • "A+" rated and accredited by the BBB

Loan Connect is a great resource for Canadians looking to borrow money. They have an extensive network of lending partners, willing to lend money to people of all credit profiles, and you can access this information without entering any identifying details.

Personal loans for business purposes

However, it's important to know right away that all of the loans available through this service are structured as a personal loan, even if you're strictly looking for funds to use for business purposes. That means you'll only be able to borrow between $500 to $50,000, with APRs between 8% and 46.96% and repayment terms of 3-120 months.

Nothing specifically for businesses

When we filled out the basic form and selected "Grow Your Business" as the purpose of our loan, we were connected with the same lenders we got when we selected "Pay for a Wedding" or "Debt Consolidation" . There were no business-specific lenders in our matches, just those that focus on funding personal loans in Canada.

Best Canadian Business Loans

Huge limitation

That's a huge limitation, compared with other options for business loans on our list. You won't get any guidance towards the right kind of loan for your current needs (equipment financing vs. a business line of credit). You'll also miss out on any benefits from the rates and terms designed specifically for business borrowers.

Terrific reputation in general

There's no issue with Loan Connect's reputation. The Better Business Bureau gives the service an "A+" rating and accreditation, and there are lots of borrowers who are thrilled that they could get the money they needed from a trustworthy financial institution, and that Loan Connect saved them the time and hassle of going to individual lenders. But, again, all of those compliments are from individual consumers who used Loan Connect as a comparison "shopping" tool for their own use, and not to borrow money in a way that's designed specifically for business owners.

Not a good choice for business borrowing

While Loan Connect is our favorite resource for Canadians looking for a personal loan, it ranks as below average for business loans. There's nothing about this service that's specific to business borrowing: when you choose a lender through Loan Connect, your funding will always be structured as a personal loan. Because of how much that limits your options (in terms of the amount you can access, the interest you pay, and even how the lender supports you as a client), we can't put Loan Connect among the services we recommend for business loans in Canada.

Compare the Best Reviews

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.
See the Best Canadian Business Loan
The Best Reviews of Canadian Business Loans