Best Business Loans Canada in 2021 | To Get the Funds You Need

July 3, 2021 | Editorial Team

Best Business Loans

Are you looking to open a new business but don’t have the funds? Or, maybe you already own a business, and you want to expand? A business loan could help you in both scenarios, so you’ve come to the right place! We are going to examine some of the best business loan lenders in Canada. There are plenty of great options, but the three we are going to discuss have great interest rates and are reliable.

Keep reading to learn more about what the best business loans in Canada are for you!

Loans Canada

Starting off our list is Loans Canada, a lending platform that started in 2012. As it is a lending platform, Loans Canada simply matches Canadians with online lenders. They partner with lenders that offer personal loans, auto loans, debt relief, and small business loans.

Eligibility for a small business loan varies, depending on the lender. But, Loans Canada specializes in helping Canadians with a bad credit score to still be approved for a loan.

Here are some of the pros and cons of finding a business loan through Loans Canada.


  • Loans Canada partners offer fairly low-interest rates ranging from 5.49% to 25%.
  • You can find lenders on Loans Canada that are willing to loan up to $300,000.
  • Loan terms can vary a lot as well, with 60 months being the maximum.
  • Loans Canada’s website is super user friendly. All the online lenders that meet your requirements will be put into a chart. This will help you compare each loan in terms of the loan amount, interest rate, and repayment terms.
  • No collateral is required.
  • You can typically receive your money (once approved) within 48 hours.
  • Everything is done online, from applying to getting approved, to receiving your money. This makes the process easy and stress-free.
  • Repayment terms vary based on the lender, but they tend to be flexible.


  • Even though Loans Canada works with Canadians with a lower credit score, their lenders may charge a higher interest rate.
  • Depending on the lender and your repayment terms, you may be charged if you repay your loan early.
  • You can only compare loans from the lenders that work with Loans Canada.


Loans Canada works with lenders that offer a wide range of small business loans. This makes them a great choice for any business. You are in control of your loan amount and term and can often find a great interest rate at Loans Canada.

With Loans Canada, you don’t need to put your business up as collateral. This will help give you peace of mind, especially if you need to take out a big loan.

Ultimately, using Loans Canada is one of the easiest ways to compare the offerings available to you from multiple lenders at once. This will help you find the best lender that suits your business specifically.


If you’re looking for an actual lender rather than a lending platform, Borrowell is a great choice. They are based in Toronto and started in 2014. And, they utilize an online platform so people all over Canada can apply for a loan.

In addition to small business loans, Borrowell offers personal loans, mortgages, car loans, and debt consolidation.

Borrowell works by offering you a free credit check. You can then use your credit profile to apply for the loan you want. If you’re approved, you will get your small business loan (or any other loan type) within 48 hours!


  • You can monitor your credit score for free. It will update every week, and checking it won’t lower your score.
  • Applying and receiving a loan (if approved) with Borrowell is quick. You can get your money within 48 hours in most cases.
  • If you want to repay your small business loan early, there will be no penalty.
  • The whole process is completed online, so you don’t even need to leave your house.
  • All of Borrowell’s fees are clearly outlined and explained as they value transparency.
  • Borrowell offers interest rates on the lower side, starting at 5.6% to 29.19%.
  • Paying your loan in full, on time, will help raise your credit score.
  • Borrowell offers a variety of products. You can apply for a business loan, personal loan, car loan, debt consolidation, or a mortgage.
  • Your minimum income only needs to be $20,000 to get approved for a loan.


  • Borrowell charges an origination fee of 1% to 5%.
  • The maximum loan you can get with Borrowell is $35,000.
  • Eligibility requirements are strict. If your credit score or income is too low, you may not get approved.


As Borrowell is a lender rather than a loan search engine, they are a good option for those looking to work with a lender directly. That being said, their eligibility requirements are quite tight, and you are likely to get rejected if your credit score is too low (anywhere from 300 to 600). Similarly, as Borrowell only offers a maximum loan of $35,000, this may not be the best option for every business owner.

If you have good credit, a yearly income of $20,000, and only need a small loan, Borrowell may be a good option for you. If not, You may want to look at another lender or lending platform we discuss in this guide.


Another great search engine for a business loan in Canada is LoanConnect. Although they are based in Toronto, they help Canadians in every province and territory find the perfect loan.

Applying with Loan Connect is easy and should not take more than five minutes. All you need to do is input some personal and financial information and the kind of loan you’re looking for. Loan Connect will then show you lenders that match your needs.


  • Eligibility is not too strict. You just need to be a Canadian citizen that is the age of majority in your province. You can also have bad credit, but your debt can’t be more than 60% of your income.
  • The loan term can be anywhere from 6 months to 18 months with a maximum of 60 months.
  • Interest rates start as low as 4.6% but will vary depending on the lender and your credit rating.
  • Using Loan Connect to search for a lender is free.
  • Loan Connect offers 12 different loan types.
  • Available to Canadians in any province or territory.


  • Maximum loan of $50,000.
  • Not an option for those with debt that totals more than 60% of their income.
  • The list of lenders is limited to those who partner with Loan Connect.


As LoanConnect is a free search engine, it is a great option for those looking to compare multiple lenders at once. Loan connect is also readily available to Canadians from all over, even those with bad credit. So, even if you were rejected by the bank, LoanConnect could still help you find the perfect loan.

If you have a lot of debt, however, LoanConnect may not be able to help. Similarly, if you need a business loan of more than $50,000, you will need to look elsewhere.

Business Loan Fees Explained

Like with any type of loan, business loans come with a variety of fees. The main fee you will have to pay is the interest rate. The interest rate you will pay throughout the term of your business loan will be decided beforehand. The interest rate can be a fixed rate or floating rate depending on what you agree upon with the lender.

The next fee you may have to pay is a registration/ origination fee. This is usually a one-time fee to financing institutions to process your small business loan application.

If you make a monthly payment on your small business loan and it gets rejected, you may have to pay a fee to the lenders. Make sure you keep track of when payments are due to avoid this charge.

Depending on the lender, you may have to pay for a monthly administrative fee. This fee can range from $50 to $100 a month.

Lastly, lenders may also charge a transaction fee to send business owners their loan each month. This often depends on the method used to deposit the money. For example, wire transfers tend to come with a higher transaction fee than cheques.

When to Get a Small Business Loan in Canada

You may be wondering when the best time to get a small business loan in Canada is. The easiest answer would be: when starting small businesses. It’s called a start-up business loan. This is not the only time you can and/or should consider taking out a small business loan, though.

You may already have a few small businesses in your possession and want to expand or renovate your current business. Small business loans could help you with that.

Maybe your small businesses are lacking inventory or staff because you don’t have the money to outright purchase items or hire people. This would be another good time to consider taking out a loan for a business.

Small business loans could also help business owners build up their business’ credit. Your personal credit history is different from your business credit history. Even if you have a perfect personal credit rating, it won’t reflect much on your business’ credit reputation.

Lastly, you may be considering investing in a new business opportunity. If you don’t have enough money out of pocket to do so, small business loans could be of help.

Ultimately, the best time to get small business loans is when you are financially ready to do so. If you need a small business loan and have enough money to make monthly payments with the interest rates, do it! Just make sure the interest rates aren’t too high. Otherwise, you will end up spending a good portion of your money paying off the interest rates.

The Bottom Line

Although picking the best business loans company is hard, we’ve narrowed it down to three. Loans Canada, Borrowell, and LoanConnect are all great options for those looking to take out small business loans. Their rates vary. Their terms can range from 6, 12, 18 months or more, and they offer different loan amounts. But, all three companies are reliable and easy to work with.

Every dream to open a business needs financing, Canada. The best way to go about it is to find lenders that suit your needs and your business’ needs specifically. Don’t settle for interest rates you can’t pay or lenders with unreasonable fees.

If you need any more business or financial advice, is here for you! Head to our homepage to read more about starting a business, taking out various loans, insurance, banking, and more. We’re here to help you become the best business owner you can be.