The best business loans in Canada for 2026
Natasha Macmillan, Senior Business Unit Director - Everyday Banking
June 18, 2026
Looking for the best business loan rates in Canada? Whether you're financing growth, covering day-to-day expenses, or getting a small business off the ground, comparing business loan lenders side by side can help you find competitive rates and terms that fit your business. Below, you'll find a breakdown of top Canadian business lenders and what they currently offer for 2026.
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Compare the best business loan providers in Canada
Business loan rates in Canada vary widely depending on your time in business, revenue, credit history, and the type of financing you need. Comparing offers from multiple lenders can help you find a loan that works for your situation.
| Lender | Rate | Loan amount | Loan term | Minimum monthly business revenue | Best for |
| Sharpshooter Funding | From 5.49% to 22.79% | $1,000 - $300,000 | 12-60 months | Minimum of $49,992 in annual revenue | Startups and lower-credit borrowers |
| Merchant Growth | Starting from 7.99% | $5,000 - $800,000 | 6-24 months | Minimum $120,000 in annual revenue | Fast funding for growing businesses |
| Primed Loans | Starting from 7.99% | $10,000 - $20,000,000 | 3-120 months | Minimum $350,000 in annual revenue |
Large business financing amounts |
| Driven | Starting from 8.39% | $10,000 - $300,000 | 3-24 months | Minimum $120,000 in annual revenue | Unsecured business loans |
| Journey Capital | From 8% to 29% | $10,000 - $500,000 | 4-24 months | Minimum $120,000 in annual revenue | Flexible repayment options |
| KM Capital | From 10.00% to 14.00% | $5,000 - $2,000,000 | 2-24 months | $10,000 in monthly revenue | Established businesses with steady revenue |
| Breeze Capital | Starting from 7.99% | $10,000 - $1,500,000 | 3-24 months | Over $10,000 in average monthly deposits in the past 90 days | Small businesses seeking growth capital |
| Advance Funds Network | Starting from 8.00% | $10,000 - $1,000,000 | 3-24 months | Minimum annual revenue of $240,000 | Same-day business funding |
| Loans Canada | Starting from 8.99% | Up to 50,000 | 4-60 months | Minimum $120,000 in annual revenue | Comparing multiple business loan offers |
* Rates shown are starting rates. Your actual rate will depend on your business financials, credit profile, and loan amount. Always confirm current rates directly with the lender.
Merchant cash advance and revenue-based financing providers
Not all business financing comes in the form of a traditional loan. Merchant cash advances (MCAs) and revenue-based financing provide businesses with upfront funding that is repaid using future sales or revenue. Because repayment is tied to business performance rather than a fixed loan schedule, these financing options can be more accessible for businesses that may not qualify for traditional loans.
| Lender | Rate | Loan amount | Loan term | Minimum monthly business revenue | Best for |
| Ontap Capital | From 10.00% | $10,000 - $2,000,000 | Up to 36 months | $25,000 in monthly revenue | Fast access to working capital |
| Bizfund | Varies | $5,000 - $500,000 | 5-9 months | $15,000 in monthly revenue | Businesses that don't qualify for traditional loans |
| Canacap | Varies | $5,000 - $500,000 | 4-12 months | $10,000 in monthly sales volume | Short-term cash flow financing |
| Bizcap | Varies | Up to 2 million | Flexible | $20,000 in monthly revenue | Flexible financing for higher-revenue businesses |
* Rates shown are starting rates. Your actual rate will depend on your business financials, credit profile, and loan amount. Always confirm current rates directly with the lender.
Our methodology: How we choose the best business loans
Frequently asked questions
How do business loans work in Canada?
Business loans provide companies with access to financing that can be used for expenses such as equipment purchases, inventory, payroll, expansion, or working capital. Depending on the lender and loan type, businesses may receive a lump sum through a term loan or ongoing access to funds through a business line of credit. The loan is repaid over a set term with interest, and qualification requirements typically depend on factors such as revenue, time in business, cash flow, and credit history.
Can startups qualify for business loans in Canada?
Yes, startups can qualify for business loans in Canada, although financing options may be more limited than those available to established businesses. Many traditional lenders prefer businesses with at least one to two years of operating history. Startups may have better luck with government-backed programs like the CSBFP, BDC loans, or alternative online lenders that place less emphasis on time in business. A strong business plan, good personal credit, and industry experience can improve your chances of approval.
What credit score do you need for a business loan?
The credit score needed for a business loan depends on the lender. Traditional banks often prefer borrowers with personal credit scores of 650 or higher, while some online and alternative lenders may accept lower scores. However, lenders don't look at credit alone. Your revenue, cash flow, existing debt obligations, and time in business can all affect whether you're approved and what rates you receive.
How much can I borrow with a business loan?
Loan amounts vary widely depending on the lender, your business financials, and the type of financing. Small online lenders may offer as little as $5,000, while government-backed programs and larger banks can provide financing up to $1 million or more. Your borrowing limit is typically based on factors such as revenue, profitability, cash flow, credit history, and ability to repay.
Will I need collateral for a business loan?
Whether you need collateral for a business loan depends on the lender and financing product you choose. Many online and alternative lenders offer unsecured business loans, though these typically come with higher interest rates. Secured loans backed by collateral, such as equipment, real estate, or receivables, often come with better terms and larger borrowing limits.
How long does business loan approval take?
Business loan approval can take anywhere from a few hours to several weeks, depending on the lender. Many online and alternative lenders offer same-day approvals and can fund approved applications within one to three business days. Traditional banks and credit unions typically take longer because they often require more documentation and a more detailed review of your business finances.
What are business loan interest rates in Canada?
Business loan interest rates in Canada can range from around 6% to 30% or more, depending on the lender, your credit profile, business revenue, time in business, and the type of financing you're applying for. Businesses with strong financials and established operating histories typically qualify for the lowest rates, while newer businesses or those with weaker credit may pay more.
Traditional banks generally offer some of the most competitive rates, while online and alternative lenders may charge higher rates in exchange for faster approvals and more flexible qualification requirements. Comparing multiple lenders can help you find the most competitive rate available for your business
Can I get a business loan with no revenue?
Getting a business loan with no revenue can be difficult, but it isn't impossible. Some startup-focused lenders, government-backed programs, and alternative lenders may consider businesses that haven't started generating income yet. In these cases, lenders often place more weight on your business plan, industry experience, personal credit history, and future growth potential. Be prepared to provide detailed financial projections and, in some cases, a personal guarantee.
What’s the difference between a business loan and a line of credit?
A business loan provides a fixed lump sum upfront, which is repaid over a set term with regular payments. It's commonly used for major purchases, expansion projects, or one-time business expenses. A business line of credit is revolving, meaning you can draw funds as needed up to a set limit, repay what you've borrowed, and draw again. Lines of credit tend to work better for ongoing cash flow needs.
How do business loans work in Canada?
A business loan gives your company access to funding that can be used to cover expenses, invest in growth, or manage cash flow. Once approved, you'll receive either a lump sum of money or access to a credit facility that you can draw from when needed. In return, you'll repay the lender according to an agreed-upon schedule that includes interest and any applicable fees.
Before approving a loan, lenders want to understand how likely you are to repay the money. They'll typically review factors such as your business's financial performance, operating history, and overall financial health. Businesses with stronger revenue and a proven track record often have access to larger loan amounts and more competitive rates, while newer businesses may face additional requirements.
Business loans are available from traditional banks, credit unions, online lenders, alternative lenders, and government-backed financing programs. Because each lender has its own approval criteria, rates, and borrowing limits, it's worth comparing several options before deciding which loan is right for your business.
Types of business loans
Businesses have access to a wide range of financing options, and the right choice often depends on how much funding you need, how quickly you need it, and what you plan to use it for. Some financing products are designed for long-term investments such as equipment or real estate, while others are better suited for managing cash flow or covering short-term expenses.
Term loans
A term loan provides a lump-sum amount that is repaid through fixed payments over a set period. This is one of the most common forms of business financing and is often used for major one-time expenses such as renovations, expansion projects, equipment purchases, or commercial real estate investments.
For example, a business might borrow $100,000 to renovate a storefront and agree to repay the loan over five years through fixed monthly payments. Once the funds are disbursed, the borrower receives the full amount upfront and begins repaying both principal and interest according to the loan agreement.
Business line of credit
A business line of credit gives you ongoing access to funds up to an approved limit. Unlike a term loan, you only pay interest on the amount you draw. This flexibility makes lines of credit a popular choice for managing cash flow fluctuations, covering unexpected expenses, or bridging temporary gaps between incoming revenue and outgoing expenses.
For example, a lender may approve a business for a $100,000 line of credit. If the business only draws $20,000 to cover short-term inventory costs, it will typically only pay interest on that $20,000 rather than the full $100,000. As the balance is repaid, those funds become available to borrow again.
Canada Small Business Financing Program (CSBFP)
The Canada Small Business Financing Program is a government-backed lending program that helps small businesses access financing through participating financial institutions. Eligible businesses can use funding for equipment purchases, leasehold improvements, commercial real estate projects, and certain working capital expenses. Because the government shares the risk with lenders, the program can make financing more accessible for some businesses that may struggle to qualify through traditional channels.
The Business Development Bank of Canada (BDC) offers financing solutions designed specifically for Canadian entrepreneurs and small businesses. BDC loans are commonly used to support business growth, technology adoption, expansion projects, acquisitions, and working capital needs. Depending on the financing program, businesses may also benefit from flexible repayment structures tailored to their growth plans.
Equipment financing
Equipment financing is used to purchase business assets such as vehicles, machinery, computers, manufacturing equipment, or specialized tools. Because the equipment itself often serves as collateral, businesses may qualify for higher borrowing amounts or lower rates than they would with an unsecured loan. This type of financing can help preserve cash flow while still allowing a business to invest in essential equipment.
Invoice financing
Invoice financing, also called accounts receivable financing, allows businesses to access cash tied up in unpaid customer invoices. Rather than waiting weeks or months for customers to pay, businesses can receive a portion of the invoice value upfront. This can be particularly useful for companies that experience cash flow challenges due to long payment cycles.
Merchant cash advances
A merchant cash advance provides upfront funding in exchange for a percentage of future sales revenue. Unlike a traditional business loan, there is typically no fixed monthly payment. Instead, the provider collects a portion of your daily or weekly sales until the advance and associated fees have been repaid.
For example, a business might receive a $50,000 advance and agree to repay the provider through a percentage of future sales. During busy periods, repayments may happen more quickly, while slower sales periods can result in smaller payments. Approval is often based on business performance rather than credit history, and funding can sometimes be available within a matter of days.
While merchant cash advances can provide quick access to working capital, they generally carry higher borrowing costs than traditional business loans and are often best suited for short-term financing needs rather than long-term investments.
What can a business loan be used for?
Business loans can be used for a wide variety of purposes, depending on the lender and financing product, including:
- Startup expenses
- Working capital
- Equipment and vehicle purchases
- Inventory purchases
- Hiring and payroll costs
- Commercial real estate projects
- Marketing and business expansion
- Technology upgrades
- Debt refinancing
That said, allowable uses can vary depending on the lender and loan type, so always confirm with your lender before applying.
What is the Canada Small Business Financing Program (CSBFP)?
The Canada Small Business Financing Program (CSBFP) is a federal government initiative that helps small businesses and startups access financing by sharing the risk with lenders. Rather than lending directly to businesses, the government guarantees a portion of eligible loans, making financial institutions more willing to approve financing for qualified applicants.
Key facts about the CSBFP:
- Available to Canadian businesses with gross annual revenues of $10 million or less
- Maximum financing of $1.15 million, including up to $1 million in term loans and up to $150,000 in lines of credit
- Eligible uses include commercial property purchases and improvements, equipment purchases, leasehold improvements, intangible assets, and certain working capital costs
- Applications are made through participating banks, credit unions, and caisses populaires, not directly through the government
- Interest rates are capped under the program and may be offered on either a fixed or variable basis
One of the main benefits of the program is that it can help businesses qualify for financing that may be difficult to obtain through conventional lending channels. Interest rates are capped under the program, and lenders may offer either fixed-rate or variable-rate financing depending on the loan structure.
To apply, you'll need to discuss your financing needs with a participating financial institution and provide supporting documents such as financial statements, business information, and details about how the funds will be used. The lender will assess your application and, if approved, register the loan under the CSBFP.
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How to qualify for a business loan in Canada
Qualification requirements vary by lender, loan type, and financing amount. However, most lenders evaluate several common factors when reviewing applications.
- Business revenue: Many lenders require a minimum monthly or annual revenue threshold. Higher and more consistent revenue generally improves your chances of approval.
- Time in business: Established businesses often have an easier time qualifying than newer companies. Some lenders require at least six months or one year of operating history, while others specialize in startup financing.
- Credit score: Both your personal and business credit scores may be reviewed, particularly for smaller businesses or sole proprietors without an established business credit profile.
- Bank statements and financial statements: Lenders use these to verify revenue, assess cash flow trends, and evaluate overall financial health.
- Existing debt obligations: Current business debt may affect how much additional financing you can qualify for. Lenders typically assess your overall debt burden when making approval decisions.
- Collateral: Some business loans require collateral, such as equipment, vehicles, inventory, or commercial property. Secured loans may offer lower rates or higher borrowing limits than unsecured financing.
- Industry risk: Certain industries are considered higher risk than others due to economic conditions, seasonal revenue patterns, or historical default rates, which can affect both approval odds and the rates you're offered.
How to apply for a business loan
Applying for a business loan is often straightforward, but preparation can improve your chances of approval.
Review interest rates, repayment terms, funding speeds, fees, and qualification requirements before selecting a lender.
Borrowing too little may leave your business underfunded, while borrowing too much can increase repayment costs unnecessarily. Plus, having a clear number in mind can help you narrow down the list of lenders you are considering.
Gather required documents
Most lenders will request documentation such as:
- Business registration documents
- Financial statements
- Business bank statements
- Tax returns
- Business plans or growth projections
Many lenders allow businesses to apply online, while banks and credit unions may offer in-person application options.
Funding timelines vary by lender. Some online lenders may provide funds within 24 to 48 hours, while traditional financial institutions may require several business days or weeks to complete underwriting. Once approved, funds are typically deposited directly into your business bank account.
Alternatives to business loans
A traditional business loan isn't always the best solution. In some situations, it may make more sense to look at other forms of financing that offer more flexibility or don't require taking on additional debt.
Government grants and financing programs
Many Canadian businesses may qualify for government grants or funding programs. Unlike a loan, grant funding generally doesn't need to be repaid, which can make it an attractive option for businesses that are investing in growth. The trade-off is that grants often have specific eligibility requirements and application processes, so securing funding can take time.
Business credit cards
A business credit card can be useful for managing everyday expenses and short-term cash flow needs. While borrowing limits are typically lower than what you might receive through a business loan, credit cards offer immediate access to funds and can be a practical option for smaller purchases. Just keep in mind that interest rates are usually much higher than those charged on business loans.
Crowdfunding
Crowdfunding allows businesses to raise money directly from the public through online platforms. Rather than applying for financing through a lender, businesses ask customers, supporters, or investors to contribute toward a project or business idea.
Platforms such as Kickstarter and Indiegogo are commonly used by startups and small businesses to fund product launches, while equity crowdfunding platforms like FrontFundr allow businesses to raise capital from investors in exchange for shares. For some businesses, crowdfunding can provide funding while also helping build an audience and gauge market interest before investing heavily in growth.