Every Canadian small business is different. Your loan should be too.
Smarter Loans matches your business profile to the right financing from 50+ lenders — term loans, lines of credit, government-backed, and more. One application, real offers, no guesswork.
Canadian small businesses are the backbone of the economy — representing over 98% of all employer businesses and employing more than 10 million people. Yet access to business financing remains one of the top challenges business owners face, with many either unaware of the full range of options available or unsure where to begin.
The business lending landscape in 2026 looks very different from five years ago. Online lenders, fintech platforms, and alternative financing products have opened up access to capital for businesses that traditional banks historically ignored — including startups with little history, self-employed operators, and businesses in cash-flow-intensive industries.
This guide breaks down every type of small business loan available in Canada, the eligibility requirements for each, what documents you'll need, how to choose the right product for your situation, and how Smarter Loans matches your business to the best option from 50+ verified lenders in minutes.
$500K Business loan range available through Smarter Loans' lender network
Types of Small Business Loans Available in Canada
Not all business financing is the same. The right product depends on your purpose, cash flow, credit profile, time in business, and how quickly you need funds. Here are the main categories available through the Smarter Loans network:
Term Loan
A lump sum repaid in fixed monthly instalments. Best for major one-time purchases: equipment, renovation, expansion, acquisition. Predictable payments make budgeting easy.
Business Line of Credit
Draw funds as needed, repay, redraw. Ideal for managing cash flow gaps, seasonal fluctuations, or ongoing operational costs. You only pay interest on what you use.
Canada Small Business Financing (CSBFP)
Government-guaranteed loan program available through major banks. Lower rates, longer terms. Best for purchasing real property, leasehold improvements, or equipment. Requires 2+ years in operation.
Equipment Financing
Loan or lease specifically for purchasing equipment. The equipment itself serves as collateral, making approval more accessible even with limited credit history. Fixed term matching the equipment's useful life.
Invoice Financing
Advance cash against outstanding invoices. Ideal for B2B businesses with slow-paying clients. Your receivables are the collateral — credit score matters less than invoice quality.
Merchant Cash Advance
Advance against future credit card / debit sales, repaid as a percentage of daily revenue. Fast and accessible, but factor rates (not APR) make it expensive. Use only when other options aren't available.
Microloans & Startup Funding
Designed for early-stage businesses and entrepreneurs. Community development organizations (BDC, Futurpreneur) and some online lenders offer microloans with mentorship support.
Commercial Mortgage / Real Estate Loan
Financing for purchasing or refinancing commercial property. Lower rates due to real estate collateral. Available through banks and specialized commercial lenders in the Smarter Loans network.
Which Business Loan Is Right for You?
Answer four quick questions and our tool will recommend the best loan type for your situation.
🎯 Business Loan Finder
Tell us about your business and we'll match you to the right financing type.
Ready to find the right business loan for your situation?
Apply once through Smarter Loans. Our technology matches your business to the best financing from 50+ Canadian lenders — based on your actual profile, purpose, and stage. Free, fast, and no obligation.
Apply for Business Financing →Business Loan Eligibility Requirements in Canada
Lender requirements vary significantly depending on the loan type and whether you're applying through a bank, credit union, or alternative online lender. Here's what to expect across the major product categories:
| Loan Type | Min. Time in Business | Min. Annual Revenue | Credit Score | Funding Speed |
|---|---|---|---|---|
| Term Loan (online lender) | 6+ months | $50K+ | 600+ | 24–72 hrs |
| Term Loan (bank/credit union) | 2+ years | Varies | 680+ typically | 1–4 weeks |
| Business Line of Credit | 1–2 years | $100K+ | 620+ | 48 hrs – 1 week |
| CSBFP (Gov't-backed) | 2+ years | Under $10M | 660+ | 2–6 weeks |
| Equipment Financing | 3+ months | Minimal | 580+ | 24–48 hrs |
| Invoice Financing | 3+ months | Active B2B invoices | Less critical | 24–48 hrs |
| Merchant Cash Advance | 3+ months | $5K+/mo card sales | 500+ or none | Same day – 24 hrs |
| BDC / Futurpreneur Microloan | Pre-revenue OK | Business plan required | Flexible | 2–4 weeks |
Business Loan Payment Calculator
Use this calculator to estimate your monthly payments and total interest cost for a business term loan.
📊 Business Loan Cost Estimator
Adjust the values below to estimate your payment and total cost.
* Rates are illustrative. Your actual rate will depend on your business profile, credit score, time in business, and revenue. Apply through Smarter Loans to see real rates from 50+ lenders.
Documents You'll Need to Apply for a Business Loan
Being prepared speeds up your application dramatically. Here's what most lenders require — though online lenders typically ask for less than traditional banks:
How to Apply for a Small Business Loan Through Smarter Loans
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1Start Your Application Online Visit apply.smarter.loans/business_loan and complete the business loan application — takes about 5 minutes. Provide your business details, funding purpose, and the amount you need.
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2Smarter Loans Matches Your Business to Lenders Our proprietary technology evaluates your business against the real underwriting criteria of 50+ lenders simultaneously — including lenders who specialize in your industry, business stage, or loan type. This surfaces the lenders most likely to approve you at the best available rate.
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3Compare Real Offers You receive actual loan offers — with transparent rates, terms, fees, and funding timelines. Review them at your own pace with no obligation. Compare the total cost of each offer, not just the monthly payment.
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4Submit Documents to Your Chosen Lender Once you select an offer, the lender will complete their verification process — usually requesting 3–6 months of bank statements and basic business registration documents. Many lenders accept digital bank connections, making this step very fast.
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5Receive Funds and Get Back to Business Funding is typically delivered by direct deposit or wire transfer. Online lenders can fund within 24–48 hours of a complete application. Bank and government-backed loans typically take 1–4 weeks.
Tips for Getting Approved (and Getting the Best Rate)
Business loan approval and pricing are driven by a handful of key factors. Addressing these before you apply meaningfully improves both your chances and your terms:
- Keep your business banking separate. Lenders assess your business bank statements heavily. A dedicated business account with clean, consistent deposits demonstrates organized operations and makes revenue easy to verify.
- Know your numbers. Lenders ask about revenue, expenses, and existing debt. Having your financials readily available — even just 3 months of bank statements — speeds up the process significantly.
- Your personal credit still matters. Most small business lenders, especially for loans under $250K, will review the owner's personal credit alongside the business's profile. A score above 650 significantly broadens your options.
- Don't overborrow. Lenders calculate your debt service coverage ratio (DSCR) — your net operating income divided by your total debt payments. A ratio below 1.25 raises concerns. Borrowing only what you need demonstrates financial discipline.
- Apply for the right product. Applying for a term loan when you need working capital (or vice versa) signals a mismatch to lenders. The Business Loan Finder tool above helps ensure you're applying for the right product.
Your business loan. Matched to your business.
One application connects your business to 50+ lenders across every product type — term loans, lines of credit, equipment financing, and more. Free to apply, no obligation, and our technology does the matching for you.
Apply for Your Business Loan →Frequently Asked Questions
The Bottom Line
Getting a small business loan in Canada in 2026 is more accessible than ever — but the landscape of products, lenders, and eligibility requirements is complex. Choosing the wrong loan type, applying to the wrong lender, or borrowing at a higher rate than necessary all have real costs to your business.
Smarter Loans simplifies this by matching your business to the right financing from 50+ verified Canadian lenders in one application. Whether you need a term loan for expansion, a line of credit for cash flow, equipment financing for a major purchase, or startup capital to get off the ground — our technology routes your application to the lenders best positioned to approve you at the best available rate.
Ready to explore your options? Visit our business loans page or apply directly below.
Canada's small businesses deserve smarter financing.
Apply once. Get matched to 50+ lenders. See real offers with no obligation. Over 2,000,000 Canadians have used Smarter Loans since 2016.
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