Business Loans · Ontario
Business Loans in Ontario
Business loan in Ontario follow the federal lending ceiling of 35% per year, with provincial licensing layered on top. Licensed regime — federal cap applies.
- Province Ontario (ON)
- Capital Toronto
- Payday lending Licensed regime — federal cap applies
- Cities covered 40
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.
Cost rules that apply in Ontario
| 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) |
Your own rate is set by the lender and depends on your file.
Ontario cities
| City | 2021 population | Business Loans page |
|---|---|---|
| Toronto | 2,794,356 | Business Loans in Toronto |
| Ottawa | 1,017,449 | Business Loans in Ottawa |
| Mississauga | 717,961 | Business Loans in Mississauga |
| Brampton | 656,480 | Business Loans in Brampton |
| Hamilton | 569,353 | Business Loans in Hamilton |
| London | 422,324 | Business Loans in London |
| Markham | 338,503 | Business Loans in Markham |
| Vaughan | 323,103 | Business Loans in Vaughan |
| Kitchener | 256,885 | Business Loans in Kitchener |
| Windsor | 229,660 | Business Loans in Windsor |
| Oakville | 213,759 | Business Loans in Oakville |
| Richmond Hill | 202,022 | Business Loans in Richmond Hill |
| Burlington | 186,948 | Business Loans in Burlington |
| Oshawa | 175,383 | Business Loans in Oshawa |
Compare business loans options
A matching step, not an application — we are not a lender 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
Can I get business loan in Ontario?
Availability depends on the product and the lender. Where Ontario licenses the product, the federal cost cap and the criminal rate ceiling still apply.
What rules apply to business loan in Ontario?
The federal criminal rate of interest of 35% per year applies everywhere in Canada. Provincial licensing adds disclosure and licensing requirements on top, and provinces that license payday lending may set a lower cost cap than the federal one.
How do I compare business loans in Ontario?
Compare the total amount you would repay, not the advertised rate. Ask for the full cost of borrowing in writing, check the lender is licensed, and read the prepayment terms before signing anything.
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Sources
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.