Business Loans · Canada
Business Loans in Canada
A business loan is money a company borrows from a lender and repays with interest, normally as a term loan with a fixed payment schedule set by the lender. Lenders weigh cash flow, financial statements, time in business and the owner's credit history far more than any personal story. What you are offered, and whether you are offered anything, depends on your circumstances and the lender's appetite.
- Product family Business Loans
- Availability Canada-wide, licence-dependent
- Cost basis Lender-set, within federal limits
- Where it is regulated Federal ceiling + provincial rules
A business loan is money a company borrows and repays with interest, usually as a term loan with a schedule set by the lender. In Canada, most small and mid-sized business borrowing is still term debt: the money arrives once, and fixed payments follow.
How term business lending works
You ask for an amount, the lender settles a term and a rate, and you repay in instalments. Interest is charged on the balance outstanding, so clearing the loan early can cut the total cost when your contract allows it without a penalty. A term loan fits a one-time need: buying stock, fitting out a space, or bridging a gap while a large invoice clears.
- The full amount is drawn at once rather than as needed.
- Fixed payments make planning easier.
- Prepayment rules vary, so read the contract.
- Pricing reflects revenue, trading history and credit history.
What a lender actually assesses
Underwriting a business is not the same as underwriting a personal loan. Lenders read financial statements, tax filings, bank statements and sales records. They weigh cash flow, existing debt payments, how long the business has traded, the industry it sits in, and whether the owner will personally back the debt. Many want a short written purpose for the funds and evidence that the money does something for revenue.
A young business with thin margins or lumpy sales is a harder file, and a decline is common. What you are offered, and whether you are offered anything, depends on your circumstances and each lender's appetite.
Getting your file ready
- Recent financial statements and tax returns.
- Several months of bank statements.
- A clear, brief purpose for the borrowing.
- A list of existing debts and their payments.
Compare the total cost of borrowing, not only the headline rate. Fees, insurance and prepayment penalties change what you actually pay. Rates above the criminal rate of interest in Criminal Code s. 347, which is 35% per year, are not lawful.
LoanGoose matches borrowers with lenders; we do not lend, set rates or decide who qualifies. Significant borrowing decisions are worth a licensed professional's review.
LoanGoose is a loan matching and comparison service, not a lender. The lowest rates are only available to the most qualified applicants.
What it costs
| Rule | Figure | What it means | Publisher |
|---|---|---|---|
| Criminal rate of interest (federal ceiling) | 35% per year | Above this, an agreement is a criminal offence. | Government of Canada (Justice Laws) |
No amount, term or rate is attached to any link on this page. Anything a lender offers you depends on your file and their own criteria.
What you need before you compare
- Your goal in one sentence. The amount, the date you need it, and the date you can repay it.
- Your real monthly surplus. What is genuinely left after every fixed cost — not what you hope is left.
- A current picture of your credit file. You can request a free copy of your report from each national bureau, and correcting an error is free.
- Every existing debt and its rate. Consolidation maths only works when you can see the whole board.
- The total cost of each option. Compare total repayment, not the headline rate.
- A check that the lender is licensed. Federally regulated banks fall under FCAC; provincial regulators license most other lenders.
Rules where you live
| Province or territory | Payday lending status | Local page |
|---|---|---|
| Newfoundland and Labrador | Licensed regime — federal cap applies | Business Loans in Newfoundland and Labrador |
| Prince Edward Island | Licensed regime — federal cap applies | Business Loans in Prince Edward Island |
| Nova Scotia | Licensed regime — federal cap applies | Business Loans in Nova Scotia |
| New Brunswick | Licensed regime — federal cap applies | Business Loans in New Brunswick |
| Quebec | Payday lending not licensed | Business Loans in Quebec |
| Ontario | Licensed regime — federal cap applies | Business Loans in Ontario |
| Manitoba | Licensed regime — federal cap applies | Business Loans in Manitoba |
| Saskatchewan | Licensed regime — federal cap applies | Business Loans in Saskatchewan |
| Alberta | Licensed regime — federal cap applies | Business Loans in Alberta |
| British Columbia | Licensed regime — federal cap applies | Business Loans in British Columbia |
| Yukon | Province-dependent | Business Loans in Yukon |
| Northwest Territories | Province-dependent | Business Loans in Northwest Territories |
| Nunavut | Province-dependent | Business Loans in Nunavut |
Provincial rules change. Confirm the current position with the regulator before relying on it — see the sourced rules table.
Compare business loans options
This is a matching step, not an application with us — we are not a lender. Checking does not commit you to anything, and no amount, term or rate is promised here.
LoanGoose is a loan matching and comparison service, not a lender. We do not make loans, set rates or make credit decisions. We may earn a commission when you click or apply through our links. The lowest rates are only available to the most qualified applicants.
Questions people actually ask
What exactly is a business loan?
It is money a company borrows and repays with interest, most often as a term loan. The lender advances a lump sum, sets a term, and you make scheduled payments until the balance is cleared. It can be secured by business assets or left unsecured, depending on the lender's assessment.
How do lenders decide whether a business qualifies?
They look at cash flow, financial statements, tax filings, bank records, time in business, existing debt payments and industry conditions. Owner credit history usually matters too. There is no single pass mark, and each lender weighs these factors differently, so the same file can get different answers.
Can I get a business loan with damaged credit?
Sometimes, but expect a smaller amount, a shorter term or a higher cost, and expect more scrutiny. A lender may lean on the assets you can pledge or ask the owner to personally back the debt. Improving your file first is usually cheaper than borrowing around a weak one.
What documents should I have ready?
Recent financial statements, tax returns, several months of bank statements, a list of current debts and a short written purpose for the funds. Having these organized speeds up the process and shows the lender you understand your own numbers.
Is a business loan different from a personal loan?
Yes. Underwriting looks at the business's cash flow and records rather than mainly at personal income, and the money is meant for a business purpose. Personal credit still appears on most applications, especially for sole proprietors, and a lender may require the owner to back the debt. The <a href="https://www.canada.ca/en/financial-consumer-agency/services/loans/personal-loans.html">FCAC — personal loans</a> page explains how consumer borrowing is assessed.
Does LoanGoose lend money or set rates?
No. LoanGoose is a matching and comparison service. Lenders make credit decisions, set rates and fund loans. A matching service can help you see options, but it cannot approve an application or promise what terms you will receive.
Where to go next
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Personal Loans
Compare personal loan offers from Canadian lenders and see what fits your budget.
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Payday Loans
How payday loans work in Canada, what they cost, and why cheaper options are worth checking.
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Cash Advances
What a cash advance really costs, and how it differs from a short-term loan or an instalment loan.
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Instalment Loans
Compare instalment loans with fixed payments spread over a set schedule you agree to up front.
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Short-Term Loans
Compare short-term loan options in Canada and see how repayment timing drives the real cost.
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Loans for Bad Credit
How borrowing works when your credit history is uneven, and what to check before you apply.
All loan types · Borrowing by province · Calculators
Sources for this page
Every figure on this page is attributed to the publisher above. Where a value could not be verified against the publisher's own publication, it is left out rather than estimated.