Loans Canada Business Loan review

What is Loans Canada?

Loans Canada is a Toronto-based online loan search platform. It takes minutes to fill out a single application online, and then you can compare loan offers from Loans Canada’s network of over 80 business lenders. 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.

Loan amounts start at around $500 with funding of up to $500,000 or more available from some lenders. Loans Canada offers same-day approval and next-day funding. Maximum loan terms vary based on the lender and loan type you choose.

Is Loans Canada legit?

Loans Canada was founded in 2012 by Scott Satov (President) and Cris Ravazzano (Chief Technology Officer). Its website lists offices in Toronto and Montreal as well as phone and email contact details. Loans Canada is also Better Business Bureau accredited with an A+ rating, and it is also a Canadian Lenders Association Approved Vendor.

Loans Canada President Scott Satov has been interviewed for a number of media outlets including BNN Bloomberg, Rogers TV and NEWSTALK 1010 (iheartradio).

Types of business loans available through Loans Canada

Loans Canada business loan options include:

• Commercial mortgages. Borrow money to pay for land or property that you want to use for your business.
• Business lines of credit. Get a revolving pool of money to tap into when you need it.
• Equipment financing. Get financing specifically for purchasing equipment and assets needed for business operations, including vehicles. Financing is also available for implementing payment processors.
• Inventory financing. This 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.
• Canada Small Business Financing Program (CSBFP) loans. Offered through banks, the CSBFP provides loans of up to $1 million to cover the cost of buying or renovating business property, buying or upgrading equipment or improving a leased business property.

What we like about Loans Canada business loans

• Easy to apply. You can apply online for a Loans Canada business loan within minutes.
• Free to use. You don’t have to pay anything to use Loans Canada. The company makes money from lenders when referring you for a loan, but there’s no obligation for you to proceed after applying for a loan quote.
• One application, many options. Submit a single Loans Canada application to view quotes from multiple lenders.
• Large lending network. You can access business financing from a network of more than 80 lenders with Loans Canada.
• High maximum amount. You can apply for loans of $500,000 or more from some lenders with a Loans Canada business loan.
• No credit check. Loans Canada will not perform a hard credit check when you apply. But please note that your lender of choice may require a hard pull on your credit before approving your application.
• Variety of loans. 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.
• Fast access to funds. Same-day approval and next-day funding is available in some cases.

What to watch out for

• Not a direct lender. Loans Canada is not a direct lender. So while you apply through the Loans Canada platform, the loan you take out will be managed by a third-party provider.
• Not suitable for startups. Your business must be at least 9 months old with sales of at least over $10,000/month to qualify for a loan.
• Not suitable for home-based businesses. You’ll also need 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 contacted by lenders over the phone to complete the application process.
• Eligibility requirements vary. Loan eligibility criteria vary depending on the lender you choose and the type of loan you’re applying for.
• High rates for bad credit. If your business has a low credit score or limited credit history, you can expect higher interest rates.
  

Alternatives to Loans Canada business loans

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Name	Product CAFBL	APR Range	Loan Amount	Loan Term	Minimum Revenue	Minimum Time in Business	Loans Offered	Broker Compliance
Journey Capital Business Loan		8% – 29%	$5,000 - $300,000	4 - 24 months	$100,000/year	6+ months	Term Loan, Line of Credit, Merchant Cash Advance		To be eligible, you must have been in business for at least 6 months with a minimum annual gross revenue of $100,000. Journey Capital offers fast and simple financing. Apply in less than 10 minutes with your basic business information and see your loan offers without hurting your credit score. Get approved within 1 business day, and choose your term, amount and payback schedule once approved.	Go to siteMore Info Compare	loading Fetching your data...
Merchant Growth Business Loan		12.99% – 39.99%	$5,000 – $800,000	6 – 24 months	$10,000 /month	6 months	Unsecured Term, Line of Credit, Merchant Cash Advance		To be eligible, you must have been in business for at least 6 months and have a minimum of $10,000 in monthly sales. Merchant Growth offers financing tailored to business needs. It specializes in providing capital based on future cash flows, but it also offers fixed solutions. Fill out an application within 5 minutes and get your funds within 24 hours.	Go to siteMore Info Compare	loading Fetching your data...
Loans Canada Business Loan		6.99% - 46.96%	$500 - $500,000	3 - 60 months	over $10,000/month	9 months	Unsecured Term	Loans Canada is a loan search platform with access to multiple lenders. Applicants will be matched with a suitable lender based on credit history and borrowing requirements.	To be eligible, you must have been in business for at least 100 days, have a Canadian business bank account and show a minimum of $10,000 in monthly deposits ($120,000/year). Loans Canada connects Canadian small business owners to lenders offering financing up to $500,000. Complete one simple online application and get matched with your loan options.	Go to siteMore Info Compare	loading Fetching your data...

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Summary of Loans Canada reviews

There are limited Loans Canada reviews on sites like Trustpilot and the Better Business Bureau, but there are some Google reviews available. Feedback is generally positive, with happy customers mentioning factors such as a quick and easy application process and fast access to funds. Customers who left negative reviews mentioned factors such as high interest rates and issues with lending partners.

It’s also worth mentioning that, 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.

Customer reviews last verified on June 30, 2024.

Am I eligible for a Loans Canada business loan?

To be eligible for business financing through Loans Canada, your business must:

• Be based in Canada
• Be at least 9 months old
• Earn 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). Minimum credit score requirements also apply but vary depending on the lender.

How to apply for Loans Canada business loans

Applying for a business loan through Loans Canada is pretty straightforward. Here’s how it works:

1. Visit loanscanada.ca, and click Apply Now at the top of the page.
2. Select Business Services, then select the type of financing you need (Business Loan, Merchant Cash Advance, Commercial Mortgage etc.).
3. Enter the amount you want to borrow, your postal code and your business start date to see if there are lenders in your area.
4. Enter your company name, industry, gross sales information and the name of your payment processor.
5. Provide personal information like your name, phone number, province and email. Select Next.
6. 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.
7. Depending on the lender you choose, you may have to provide additional documentation like articles of incorporation and business bank account statements from recent months.

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How much will a Loans Canada business loan cost?

It’s free to apply for a loan through Loans Canada, but you’ll pay interest on the amount you borrow. Interest rates vary based on your credit score, the term of your loan, how much you borrow and the lender you choose.

Although interest rates vary between Loans Canada partners, you’ll generally be offered anywhere from 6.99% - 46.96%. However, you may be offered a higher rate depending on your business’ financial situation.

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.

Be aware that some lenders may also charge an origination fee for setting up your loan and an early repayment fee if you pay off your loan early.

Bottom line

Loans Canada makes it easy to compare business loans from multiple lenders 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.