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Loans Canada Review

Monday, December 2nd

2024 Canadian Business Loan Reviews

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.

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.

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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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!

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