Business Loans in Ontario

Searching for a loan to finance your business in Ontario? You are in the right place! Browse the comparison table below to find the best small business loan options currently available to Ontario business owners.

Smarter Loans have collected a list of reputable trusted business loan lenders to help you with your loan search and application. Compare loan rates, loan amounts, and terms and select a business financing option that suits the needs of your company.

Click “Apply Now” next to the lender of your choice to start your business loan application; or, if you need some assistance in choosing the right provider for your business credit and requirements, pre-apply with Smarter Loans. We will review your request and connect you with the best small business loan lender in Ontario for your specific needs.

Ontario Small Business Loans FAQs

A loan can help your business in a variety of ways, from day-to-day operations to expansion. And for many small business owners in Ontario, a small business loan is the only practical financing option. Unfortunately, the route to loan approval can seem overwhelming. Small business owners can best position themselves for loan approval, and a positive borrowing experience, by doing some research before jumping in. Finding a reputable lender is probably the most important factor. As Ontario is home to the majority of Canada’s small businesses, Ontario small business loan lenders are one option. There are also more general lenders who cater to a variety of Ontario businesses.

How do I get a business loan in Ontario?

Getting a business loan in Ontario may not be as complicated as you think. The first step is to find a reputable lender whose eligibility criteria you meet. These criteria usually entail minimum credit scores, healthy monthly sale volumes, and a clean financial history. If you are seeking an Ontario business loan for an existing business, factors such as annual revenue and years in business will be important. Meeting your chosen lender’s requirements is the first step in ensuring business financing. Then you must apply for the loan, either directly or through an intermediary, ensuring all of your supporting documentation is included.

Who is eligible for a small business loan in Ontario?

Typical requirements for a small business loan in Ontario is at least 12 months in business and at least $10,000 in monthly sales. Accessing a small business loan for your Ontario business is often possible thanks to a government program that makes it easier for small business owners to gain approval for a business loan. The program shares risk with the lending financial institution, so they have more freedom to approve small businesses. To be eligible for a loan under this program, businesses must be based in Canada, operate for profit, be non-farming related, and have gross annual revenues of less than $10 million.

How do I apply for a small business loan in Ontario?

Applying for a business loan in Ontario starts with finding the right lender. You need to find a reputable lender with eligibility requirements you can meet. Browse Ontario lenders in the list above; by pre-applying through Smarter Loans you can ensure you are connected with the appropriate lender for your business. Once you know which company you want business funding from, you must then gather the required paperwork. This varies slightly from lender to lender, but usually includes the business’s full financial documentation. And depending on the lender, you may be required to meet with a financial officer in person to discuss your application before a decision is made.

What business loan terms should I expect?

Ontario business loan terms vary from lender to lender, and from business to business. For example, the rates and requirements for online lenders tend to be quite different than for banks. Generally, though, borrowing amounts range from $5000 to $500,000, with interest rates starting at around 6%, and terms varying from 3 months to 5 years.

Best Business Loan Uses

A business loan can be used for a wide range of purposes, and can be incredibly useful for both new and existing businesses. Bear in mind though that if you are granted a business loan through a specialized program (for example, the government small business program mentioned above) there may be some restrictions on how you can use the financing.

In Ontario business loans most commonly finance the following business costs:

  • New equipment purchase or equipment repair
  • Buying or leasing property or land
  • Buying inventory
  • Buying or leasing commercial vehicles
  • Improving land or buildings used for commercial purposes
  • Franchise purchase
  • Business expenses
  • Working capital

Can I get a business loan in Ontario if I have bad credit?

Despite what you may have heard, it is possible to get a business loan in Ontario if you have bad credit. There are plenty of reputable bad credit business lenders in Ontario to choose from. Just be aware that you may have to put up collateral, or pay a higher interest rate.

Ontario Business Loan Facts

As Canada’s most populous province, Ontario has a wealth of businesses (large and small), and an active debt market. Here are some quick facts:

  • Ontario’s net debt-to-GDP is 40.2%.
  • Household debt averages 171% of disposable income, which in Ontario equates to over $150,000 in debt per household.
  • Household debt in Ontario is 8% higher than the rest of the country.
  • Over the past 10 years, small businesses across Canada have borrowed over $9.5 billion and taken out over 63,000 loans.
  • 96% of new small businesses last at least a year, but that number drops to 70% over five years.

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