For most small business owners, their business is so much more than just their bottom line. That said, having the financial strength to stabilize and grow your business sometimes means we need a helping hand. That’s where a small business loan comes in.
For Ontarian small business owners, there are a host of great options out there beyond what the big banks have to offer. We’ve compiled a list of seven popular business loan providers to help you find the best loan for your business today.
Journey Capital offers several different loan options with varied terms and repayment schedules, including lines of credit, merchant cash advances and more. A Journey Capital business loan typically delivers funding in as little as 24 hours once approved, with fairly competitive interest rates available for good credit borrowers.
Merchant Growth offers flexible financing solutions specifically designed for small businesses, including both fixed and variable term loans as well as merchant cash advances. They provide quick access to cash—often within 24 hours of approval—with a straightforward application process.
Loans Canada is the country's biggest lending network, allowing you to access and compare loan offers from many lenders via one simple online application. Loans Canada can offer competitive rates for good credit consumers and can match you with a small business loan provider in a matter of minutes.
Driven specializes in providing small business loans with a focus on speed and flexibility. They offer multiple financing solutions, including working capital loans and equipment financing. Their application process is streamlined, and approved businesses can receive funding in as little as 24 hours with tailored terms available, depending on your needs.
Fast online application
Quick funding
Flexible loan terms
No hidden fees
Fixed rates only
High rates for bad credit
$120,000 min. revenue
Loan amount
$5,000 – $300,000
APR
Starting at 4%
Term
3 - 24 months
Interest Rate Type
Fixed
Min. Credit Score
600
Fees
Fixed daily, weekly or bi-weekly loan payments Yearly fee of between 8% and 22% of your borrowed amount Late fees and non-sufficient funds fees
Greenbox Capital offers a variety of different business loan solutions, including merchant cash advances and small business loans. They are known for being an accommodating lender, looking beyond credit scores and factoring in the bigger picture to help you find the financing your business needs. Greenbox is also known for its fast turnaround time, with funding usually arriving within one business day.
Bad credit loans available
Quick funding
Flexible repayment options
Short term loans
High rates for bad credit
May require daily payments
Loan amount
$500,000 – $3,000
APR
N/A
Term
3 to 12 months
Interest Rate Type
Fixed
Fees
Non-sufficient fund fees, late fees, origination fees.
2M7 is an alternative business financing lender that specializes in merchant cash advances. They have been in business in Canada for over 13 years and boast an approval rating of 97% for applicants in need of cash funding for their businesses.
Same day funding
Repayments based on cash flow
No collateral needed
Expensive
Short-term financing
No traditional loans
Loan amount
$10,000 – $250,000
APR
N/A
Term
3 - 6 months
Interest Rate Type
Fixed
Min. Credit Score
550
Fees
There is a one-time “factor rate” fee that’s between 1.18 and 1.48 and is multiplied by the amount of your cash advance to determine the total amount that must be paid back. This is the only fee you’re charged for your cash advance.
Turnaround time
A few hours up to two business days, depending on how accurate and complete your application is
Advance Funds Network specializes in fast business loan funding, offering a variety of business financing solutions. Originally from New York with offices in Toronto, they cater to businesses that have been in operation for at least 3 months and can show a projected annual revenue of at least $200,000. Although, they do claim to have flexible eligibility criteria.
Loan funding within hours
No credit score requirements
Transparent terms
Must be in business for at least 3 months
Min. revenue of $200,000
Loan amount
N/A
APR
N/A
Term
Interest Rate Type
Fixed
Small business grants in Ontario
In addition to these traditional and alternative small business loans, business owners in Ontario also have a wide array of business grants to look toward when it comes to securing funding and financial support. Here’s a look at some small business grants in the province:
Starter Company Plus: Offers financial advice and grants of up to $5,000 for new businesses or those expanding operations.
Canada-Ontario Job Grant: Provides funding for employee training, covering up to two-thirds of the total cost.
Northern Ontario Heritage Fund Corporation (NOHFC): Offers various grants and investments for businesses at different stages of development in Northern Ontario.
Eastern Ontario Development Fund (EODF): Offers grants for business expansion in Eastern Ontario, from $500k-$5M.
Southwestern Ontario Development Fund (SWODF): Grants for business growth and expansion in Southwestern Ontario.
Eligibility requirements for small business loans in Ontario
Generally speaking, you’re going to need to tick the following boxes to be eligible for a small business loan in Ontario:
Business registration. Your business must be legally registered and actively operating in Ontario with appropriate business licenses and permits.
Business plan. Most lenders will want to see a well-structured business plan to demonstrate your business’s goals, market analysis and financial projections. In short, you’ve got to show that you are serious about needing and using a loan.
Creditworthiness. Almost all lenders will want to see your personal and business credit scores. A good credit score demonstrates reliable financial management and low risk for lenders, but some are also willing to work with bad credit scores.
Financial documents. As well as providing a detailed business plan, lenders will want to assess your up-to-date financial records, including balance sheets, income statements and tax returns.
Industry. Some loans and grants may be intended for businesses within specific industries. Check that your desired lender is a suitable match for your business before applying.
How to apply
You can apply for most small business loans online, although a bank or credit union may require an in-person visit to initiate or finalize your loan application. Once you’ve started comparing options, here are the next steps:
Find the best loan you can qualify for. Take your time to research all your options and compare any quotes or pre-approved offers available to you. Even if you need a loan quickly to cover an emergency, it pays to do some research at this stage.
Follow the application process. When you’ve chosen a lender and a particular loan offer, complete the application process. Make sure you review it carefully to avoid errors or delays.
Get approved. The timing depends on the lender, but once you’ve been approved you’ll be informed about when to expect funding.
Required information and documents
When you apply for one of the best small business loans in Ontario, it’s likely that you’ll need to provide some of the following as part of your application:
Your name, contact information and Social Insurance Number (SIN)
Your business name, address, phone number and email address
Your industry and the date you started your business
Your annual business revenue
Your personal bank account information and income
How much you want to borrow
Intended use of your loan
Depending on your chosen lender’s application process, you might also need financial and legal documentation, including:
Bank statements
Revenue statements
Business and personal tax returns
Personal credit score
Insurance or collateral
Business plan
Bottom line
You’ve got plenty of options for small business loans in Ontario, with lots of variety in the market. Start comparing today and take your business to the next level with the best business loans available in Ontario.
Steven Brennan is a freelance finance writer working from Vancouver, B.C. He has a BA and an MA in English Literature at the University of Ireland, Maynooth, and also spent time working in Italy and Vietnam as an English teacher. Today, he writes regularly on a range of personal finance topics including banking, loans, mortgages, insurance and tax. His work has appeared on sites such as LowestRates.ca and WealthRocket, as well as in print with Canadian MoneySaver. See full bio
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