Small businesses all over Canada rely on access to capital to make established businesses grow and prosper. For many small business owners, it can be complicated to get the funds they need quickly and at a decent interest rate.
If you have a poor or bad credit score, it makes it even more difficult to get a secured business loan or get a young business approved for a small business loan.
At Smarter Loans, you can review our list of Canada’s best bad credit small business loan lenders, that will work with you even if you have a bad credit score or business credit card and history too. You can also here at Smarter Loans, and we will connect you with the most suitable bad credit business loan provider for your financing needs.
BizFund is an established, fast growing, alternate business funding solution, for small to mid-size businesses. Based in New York, with offices across the globe, we are excited to bring our 10 years of business funding expertise and resources to the Canadian market. As our tag line says, we are loyal to you and your growth. We value our partners and merchants, and stand behind every investment from start to finish, whether funds are being used for inventory, upgrades, expansion, human capital/wages, and/or marketing to name a few – we will partner with you for the duration of the funding.
MPower Funds helps small and medium-sized businesses get fast, flexible financing. Their mission is simple: make it easy for business owners to access the capital they need to grow, without added stress or delays.
With MPower Funds, securing funding takes just three straightforward steps – apply online, get a quick decision, and receive funds in as little as five business days.
They also provide free, personalized consultations to match you with the right funding option, ensuring you get terms that fit your unique business needs. By combining speed, flexibility, and guidance, MPower Funds takes the hassle out of business financing so you can stay focused on what matters most: growing your business.
MPower Funds — At a Glance
Key facts and products in one simple chart.
Category
Details
Funding Amount
Up to $500,000
Speed
Approvals in 24–48 hours; funds typically in 3–5 business days
Coverage
Serving small & medium businesses across Canada (except Quebec) and the U.S.
Application
Simple online form with free consultation available
Repayment
Fixed terms or flexible factor-rate remittances
Core Products
Business Term Loan: Lump-sum capital with predictable payments Merchant Cash Advance: Revenue-based financing with payments tied to sales Business Purchase Financing: Structured funding to acquire an existing business (franchise, retail, services) CMHC / MLI Select Financing: Specialized multi-unit housing financing leveraging MLI Select benefits
Ideal For
SMBs needing fast working capital, growth funding, seasonal cash-flow support, acquisitions, or multi-family project financing
Highlights
✔ Personalized guidance ✔ Flexible credit profiles ✔ Fast decisions
Welcome to Breeze Capital – your dependable ally in business financing throughout Canada. With a track record spanning over 8 years, they specialize in delivering prompt and hassle-free lending solutions tailored to suit the unique requirements of businesses across every province. Their efficient process ensures a quick, seamless, and stress-free experience, empowering you to access the capital you require with unmatched efficiency. Boasting an impressive approval rate exceeding 98%, Breeze Capital is synonymous with reliability and support for businesses of all scales. Whether you seek working capital, equipment financing, or any other financial assistance, count on Breeze Capital to be your partner in realizing your business ambitions.
Canacap’s number one priority is to put the power of business growth back in the business owner’s hands by giving you convenient access to working capital without the massive paperwork, complications, and delays of a traditional bank. Our one page application process is fast, easy, and free. Many business owners have been denied traditional loans by their banks and other lending institutions – that’s where we step in. Our expert in-house underwriters help our clients get approved for financing quickly and with minimal paperwork.
With no collateral required, our approval rates for applicants is over 90% and most businesses are funded within 24-48 hours! You can use your funds to buy inventory, invest in equipment, build a website, hire staff, and do whatever you need to grow your business.
Driven is Canada’s leading fintech dedicated to small businesses. It provides flexible capital, personalized support, and next-generation data science and technology to Canadian small business owners. Since 2006, Driven has empowered more than 17,000 Canadian businesses to survive, thrive, and grow to their full potential.
Take a step towards a thriving future for your company by exploring a business loan today!
Journey Capital, a proudly Canadian enterprise, boasts a seasoned team and leadership dedicated to providing top-tier financing solutions for Canadian small businesses. With a focus on people-first principles, they offer an extensive array of online lending services, including Business Term Loans, Business Lines of Credit, and Flex Fund merchant advances. Since their establishment in 2009, Journey Capital has led the industry in transparent, efficient, and data-driven lending practices, leveraging technology to deliver rapid funding to a diverse range of Canadian enterprises.
We are one of Canada’s fastest and most friendly alternative financiers. We’ve been helping businesses grow since 2009, it’s all we do and we love doing it. Our innovative approach blends thoughtful customer care, complete transparency, and the latest technology to provide fast accessible financing to small businesses in Canada. Basically, we work really hard to make business financing easy to understand, accessible for everyone, and make the whole process quick…really quick.
Merchant Growth is a member of the Canadian Lenders Association:
Elevate your business financing experience with Advance Funds Network. They have been funding businesses in Canada & the United States since 2008 with over 1,000 positive online reviews. Advance Funds Network offers a wide array of financing options, including working capital, invoice factoring, bridge financing, and lines of credit. The whole funding process takes between 24-48 hours with No Collateral required! Apply today and get a free quote within a few hours!
Advance Funds Network is a member of the Canadian Lenders Association:
KM Capital is committed to helping Canadian businesses thrive. As an innovative alternative funding provider, KM Capital understands small and medium-sized businesses’ challenges when traditional financing options fall short. That’s why they specialize in flexible Merchant Cash Advances tailored to every client’s needs.
Their streamlined one-page application process is simple, fast, and free, designed to make securing funding easier than ever. With a team of diligent in-house underwriting experts, KM Capital approves over 90% of applications and delivers funds within as little as 24–48 hours, with no collateral required.
You can use this funding to take your business to the next level—purchasing inventory, upgrading equipment, hiring staff, or launching a website. Let KM Capital be your trusted partner in business growth by helping you overcome challenges and seize new opportunities. With KM Capital, the possibilities are limitless.
Clara Capital is one of Canada’s most reliable sources for Small Business Loans. Clara Capital provides access to quick and affordable funding options for all types of businesses. They pride themselves on being the lending partner that helps facilitate growth while always providing exceptional, dedicated service. Every business is different and their goal is to place their clients in the type of funding product that will allow for maximum growth potential
NewCo Capital Group is a direct alternative capital provider specializing in Receivables-Based Financing (RBF) and working capital solutions for small and medium-sized businesses. Based in the U.S. and now expanding into Canada, we empower business owners with fast, transparent, and flexible funding. They proudly serve over 60 industries, including retail, healthcare, construction, and transportation. NewCo’s streamlined process allows for approvals within hours and funding in as little as 24 hours – sometimes the same day. Whether you’re looking to manage cash flow, seize a growth opportunity, or bridge a short-term gap, NewCo delivers the capital to move your business forward.
Now available to Canadian businesses, NewCo is bringing its proven funding model and commitment to service across borders – helping more entrepreneurs access the support they need to thrive.
As an official member of the Forbes Finance Council and a certified Great Place to Work®, NewCo Capital Group is recognized for its commitment to responsible financing and exceptional client service. With a focus on industries ranging from retail and healthcare to construction and hospitality, NewCo continues to drive positive change by providing the capital businesses need to thrive.
Capital For Market is a Canadian Business Loan Brokerage that serves the North American market. With focus on Canada and the US. They are a boutique company serving a niche market. Taking pride in growing their clients beyond just getting loans. They were voted Best Business Loan Brokerage in Canada 2023 and Most Client Focused Business Loan Brokerage in North America 2023. Due to their ability to match client needs to appropriate lenders their success rate of accepted clients is more than 90%.They are members of CFLA (Canadian Finance Lease Association), NEFA (National Equipment Finance Association) and The Oakville Chamber of Commerce. Imagine what they can do for your company. Let them help you grow.
Nexus Finance is a trusted Canadian business financing provider dedicated to helping small and medium-sized businesses thrive. With a focus on speed, flexibility, and transparency, Nexus Finance connects entrepreneurs with the funding solutions they need to manage cash flow, invest in growth, or navigate unexpected expenses.
Serving businesses across all provinces in Canada, Nexus Finance offers a variety of financing options — including merchant cash advances, lines of credit, unsecured term loans, invoice factoring, and point of sale financing. With a streamlined application process, same-day funding availability, and access to a network of reputable Canadian lenders, Nexus Finance empowers business owners to make confident financial decisions.
To date, the company has released over $100 million in funding to Canadian businesses, supporting their journey from stability to success.
Founded in 2020, MHB Financial has quickly established itself as a trusted partner for Canadian businesses seeking working capital solutions. With a focus on speed, flexibility, and transparency, MHB Financial has empowered over 10,000 clients to achieve their financial goals, facilitating more than $100 million in funding to date.
MHB Financial stands out by combining personalized service with a commitment to delivering the best possible financing options. Acting as both a lender and a broker, they ensure clients receive competitive rates and tailored solutions designed to meet the unique needs of their businesses.
Services Offered:
Unsecured Term Loans: Flexible funding without the need for collateral
Invoice Factoring: Turn outstanding invoices into immediate cash flow
Merchant Cash Advances: Funding tied to future sales for businesses on the move
Lines of Credit: Access capital when you need it, up to a set limit
Secured Asset-Based Loans: Financing backed by business assets
Point of Sale Financing: Solutions to support customer purchases
Custom Financial Solutions: Tailored funding options to fit any business need
With a streamlined application process, same-day funding, and a client-first approach, MHB Financial is dedicated to helping Canadian businesses thrive in today’s competitive marketplace.
Greenbox Capital is an alternative lender supporting the growth of small businesses in Canada and the United States. When you work with us, you can be assured of getting fast funding with ongoing communication throughout the process. At Greenbox Capital, we fund with integrity and take a personalized approach to your funding needs. It’s always people first.
Loop is a banking platform built specifically for the needs of growing ecommerce businesses. Loop offers a multi-currency corporate Mastercard®, seamless payments to suppliers around the world at market-leading FX rates, real US Dollar bank accounts and capital solutions for D2C brands.
The Loop team has been building financial products for Canadian businesses for the better part of a decade. Since day 1, they have been exclusively focused on supporting the small business ecosystem. They’ve advocated for banking reform, pioneered low-cost funding methods for SMBs and lent more than $100M to businesses across the country.
Bad credit in businesses is a result of previous failures to make payments to creditors on time as agreed upon. These creditors can include banks financial institutions from which a business borrowed loans from, suppliers from where they bought inventory, utility companies which provide water, electricity etc. and/or others. These creditors all report payment histories and patterns to credit bureaus (Equifax, TransUnion, Experian etc.), which then assign the business a credit score between 0 and 100.
Why is it hard to get a bad credit business loan for a small business?
As noted above, poor credit can represent challenges to business financing. However, this doesn't have to be a permanent feature of your own business plan.
With the right strategies and money management practices, bad credit can be reversed. A few key strategies are listed below:
Make Payments on Time: Timely payments are paramount in repairing poor business credit. Late or missed payments not only negatively impact credit scores but also strain relationships with creditors. Consistently meeting your financial obligations demonstrates fiscal responsibility. In cases where meeting all financial commitments may be challenging, prioritize paying off the largest invoices first. Some credit agencies use a dollar-weighted methodology to calculate credit scores, so addressing substantial debts can have a more significant positive effect.
Negotiate Better Terms with Creditors: If your business requires a certain level of working capital or faces difficulties in servicing creditor payments on time, consider negotiating longer loan terms with your creditors. This can provide temporary relief, ensuring that your credit score remains stable until your business has the necessary funds to meet its obligations.
Lower Utilization Rates: If your business utilizes revolving credit facilities or business credit cards, keep a close eye on the utilization rates. High utilization rates over extended periods can increase the perception of riskiness as a credit candidate. Aim to keep these rates low to maintain a positive business credit score.
Negotiate Payment Terms on Past-Due Accounts: For accounts that have fallen behind schedule, proactive communication with the creditor is essential. Negotiate with them to restructure the debt. While not guaranteed to succeed, such negotiations can provide your business with an opportunity to start afresh with more manageable repayment terms.
Separate Personal and Business Expenses: Mixing personal and business expenses can complicate creditor repayment and credit rebuilding efforts. To facilitate better financial management, ensure clear separation between personal and business expenditures. This separation simplifies record-keeping and supports more transparent credit management.
Consider Getting a Business Loan: Surprisingly, obtaining a business loan can be a strategic move for rebuilding business credit, even if your credit history is less than perfect. Securing a business loan that aligns with your cash flow can demonstrate your commitment and ability to repay debts, gradually improving your credit score over time. However, it's crucial to evaluate your business's current financial situation and avoid adding undue leverage. Whenever possible, opt for loans that are secured when seeking to rebuild credit.
Bad Credit Business Loans FAQ
1) Can you get a small business loan with bad credit?
Yes, it is certainly possible to get a business loan even with a bad credit score, but it will be considerably more challenging.
2) Are certain industries viewed less favourably in bad credit loan applications?
Yes, industries that have a high capital expenditure requirement and intense competition generally are regarded to be more risky than others.
3) What does a lender want to see before advancing a bad credit loan?
Lenders will certainly want to see the business's registration documentation and the owner's ID.
4) Are there bad credit business loans with guaranteed approval?
No, there are no bad credit loans that are absolutely guaranteed.
Expert Review & Editorial Standards
This page was researched, written, and reviewed by financial professionals with expertise in Canadian lending regulations. All information is regularly updated to reflect current rates, terms, and regulatory changes.
Reviewed By
Jenna West
Financial Writer & Content Director
Jenna has covered the Canadian FinTech and consumer lending industry since 2017. She specializes in regulatory updates, consumer protection, and helping Canadians navigate complex financial products.
8+ years analyzing Canadian consumer lending
Monitors FCAC and provincial regulatory changes
Specializes in personal loans and alternative lending
Written By
Amy Orr
Financial Content Specialist
Amy is a financial writer with 10+ years covering Canadian, U.S., and U.K. financial markets. She holds a Masters in Finance from the University of Edinburgh Business School and formerly worked in the hedge fund sector.
Masters in Finance, University of Edinburgh
Former hedge fund professional
Published in major financial publications
About Smarter Loans
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Last Updated: October 10, 2025 | Next Review: Ongoing monitoring
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