Securing financing is one of the biggest challenges for small businesses. As of December 2022, Canada had 1.22 million employer businesses, with 97.8% classified as small businesses. As of December 2022, Ontario had approximately 444,702 small businesses, representing 36.5% of all small businesses in Canada.

Small businesses typically struggle to gain easy access to financing to grow their business. The lack of timely financing can result in the failure of small businesses. Hence, in this article, we will look at Ontario’s top 10 small business loan options so that you can keep running your small business smoothly.

1. Traditional Financial Institutions 

Traditional financial institutions are open to providing financing to small businesses. The banks are established lenders ensuring reliability and often provide loans at a lower cost compared to alternative lenders. If your business has a good operating history, you can get a business loan swiftly from the banks. If you have bad credit, you may be out of luck with these institutions and will have to look into alternative lenders listed below…

Royal Bank of Canada (RBC) – provides diverse loan terms (short, medium, and long-term) along with asset-based financing and business lines of credit, making it versatile for businesses at various stages.

Toronto-Dominion Bank (TD) – supports businesses of all sizes with tailored solutions, including operating credit, term loans, and lines of credit, catering especially to operational and expansion needs.

Canadian Imperial Bank of Commerce (CIBC) – offers term loans, asset-based loans, and specialized small business loans, all with a strong presence across Ontario to serve local businesses efficiently.

Bank of Montreal (BMO) – provides both floating and fixed-rate options, along with lines of credit in both CAD and USD, suiting businesses with cross-border needs or fluctuating cash flows.

Scotiabank – offers a variety of financing solutions, including term loans and specialized credit lines, designed to meet the unique demands of small businesses, especially those seeking flexible options for growth.

2. Merchant Growth

Official Name: Merchant Growth

Website: https://www.merchantgrowth.com/

Phone Number: +1 866-240-3694

Email: clients@merchantgrowth.com

Google Reviews: 4.1/5 stars (100+ reviews)

Trustpilot: 4.8/5 stars (450+ reviews)

BBB Rating: A+

Merchant Growth specializes in small business loans and merchant cash advances. Their main target is small and medium-sized businesses looking for fast and flexible financing solutions. The criteria to qualify for a loan through Merchant Growth is quite strict. Businesses less than 6 months old and with revenues less than $10,000 monthly do not qualify for financing.

They offer two types of loans—fixed and flex (variable) term loans. Merchant Growth also provides merchant cash advances, which means loan repayments are tied to daily sales, making it flexible for businesses with fluctuating cash flows. To learn more about the company, read the full review here.

3. Journey Capital

Official Name: Journey Capital

Website: https://www.journeycapital.ca/

Phone Number: +1 877-781-0148

Google Reviews: 4.7/5 stars (130+ reviews)

Trustpilot: 4.9/5 stars (93 reviews)

Journey Capital is known for its fast approval process and offers working capital to businesses across various industries in Ontario. They provide short-term loans, business lines of credit, and cash advances, with a primary focus on working capital.

One drawback is that a hard credit check is done when the loan seeker selects one of the credit products. We did a full comparison of Merchant Growth and Journey Capital here.

4. LoansCanada.ca

Official Name: LoansCanada

Website: https://loanscanada.ca/

Phone Number: 1 (877) 995-6269

Email: info@loanscanada.ca

Google Reviews: 3.9/5 stars (90+ reviews)

BBB Rating: A+

LoansCanada.ca is a lending platform that connects small business owners with multiple lenders, allowing them to compare rates and choose the best option.

Through Loans Canada, businesses can borrow up to $500,000. Even though this amount is less than what Merchant Growth offers, LoansCanada is a great pick for businesses and sole proprietorships that are looking to expand. To learn more about this lender, read our full review here.

5. Swoop Funding

Official Name: Swoop Funding

Website: https://swoopfunding.com/ca/

Phone Number: 647 946 3001

Email: canada@swoopfunding.com

Google Reviews: 4.9/5 stars (8 reviews)

Trustpilot: 5/5 stars (370+ reviews)

Swoop Funding connects businesses with various financing solutions, including loans, equity finance, and grants. Swoop Funding doesn’t charge application fees, but each partner lender has specific terms. Business owners may find better rates here than with individual lenders due to competition.

Users like the easy access to a wide array of financing products. However, navigating different lenders’ fees can be challenging for those unfamiliar with complex loan structures.

6. Driven.ca

Official Name: Driven

Website: https://www.driven.ca/

Phone Number: 1-866-889-9412

Email: customerservice@driven.ca

Trustpilot: 4.6/5 stars (860+ reviews)

Known for speed and flexibility, Driven.ca specializes in short-term business loans for quick cash flow needs. Their fees are straightforward, with no hidden costs, although the interest rates can be high due to the short-term nature of the loans. Fees vary based on creditworthiness and loan term.

7. MicroCapital.ca

Official Name: MicroCapital

Website: https://www.microcapital.ca/

Phone Number: +1 866-240-3694

Email: bonjour@microcapital.ca

Trustpilot: 4/5 stars (Limited reviews)

MicroCapital.ca is a microfinance company offering loans to small businesses with limited access to traditional lending. Businesses applying for loans through MicroCapital should have at least $120,000 in annual revenues. However, businesses that qualify can enjoy a hassle-free experience and priority customer service. They can also apply for different types of loans.

8. Futurpreneur

Official Name: Futurpreneur

Website: https://futurpreneur.ca/

Phone Number: +1 800 464 2923

Email: info@futurpreneur.ca

Google Reviews: 4.1/5 stars (100+ reviews)

Futurpreneur Canada supports young entrepreneurs with financing and mentorship. The company provides startup loans with a term of up to five years.

Interest rates are favorable compared to other lenders, as Futurpreneur Canada partners with BDC to offer low-cost financing. There are no hidden fees, but applicants must go through a rigorous approval process.

9. Greenbox Capital

Official Name: Greenbox Capital

Website: https://www.greenboxcapital.ca/

Phone Number: +1 855-442-3423

Email: info@greenboxcapital.com

Google Reviews: 5/5 stars (Limited reviews)

Trustpilot: 4.7/5 stars (500+ reviews)

Greenbox Capital offers short-term loans and cash advances, primarily targeting businesses with fluctuating cash flows. They provide merchant cash advances and small business loans, typically with short repayment periods.

Greenbox Capital is transparent about fees, but rates can be higher due to the fast, flexible nature of the loans. Most loans are structured with daily or weekly payments.

10. The Bank for Canadian Entrepreneurs

Official Name: The Bank for Canadian Entrepreneurs

Website: https://www.bdc.ca/en

Phone Number: +1-877-232-2269

Email: info@bdc.ca

BDC is a federal institution providing support to Canadian businesses through loans, advisory services, and financing programs. The organization offers a wide range of business loans, including term loans, working capital loans, and equipment financing.

BDC’s rates are often lower than those of private lenders, and they’re transparent with fees.

Set Your Ontario Business Up For Success

Remember, getting a favourable loan with good rates and terms is only half the battle. If you want your business to grow and thrive, whether you’re located in Toronto or elsewhere in Ontario, consider investing in search engine optimization services, a proper website, business cards and other marketing materials that will help you get exposure for your business and generate revenue. Consider also getting a small business insurance policy to cover your business against liabilities and lawsuits. Contact us today to see how we can help your business in Toronto, Ottawa or elsewhere in Ontario spend their newly acquired loan in a way that will generate clients. Also, check out our Alberta and Saskatchewan business loans articles if you are seeking financing options in those provinces.