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Financial resources and loans for small businesses

Getting a business loan can be especially tough for small businesses, and the current pandemic is making it considerably more necessary.

You may be tempted to turn to the banks only to find your low cash flow, short operational time, or perhaps poor credit history to prevent you from securing a loan from these conservative lenders. In any case, here are a few alternative Canadian small business loan sources for you to find the financing you need.

Canada Small Business Financing Program

The Canada Small Business Financing Program was established to ease the process of receiving loans from financial institutions as a small business by sharing the risk with the lenders. Up to a maximum of $1,000,000 for one borrower is offered with varied interest rates depending on your financial institution. These services are given to small businesses or start-ups operating in Canada with gross annual revenues of $10 million or less. Unfortunately, if you represent a farming business, a not-for-profit organization, charitable or religious organization, you will not be eligible for this program.

Business Development Bank of Canada (BDC)

The Business Development Bank of Canada is Canada’s first and only bank to receive the Beneficial Corporation Certification, ensuring that all actions taken are in favour of benefiting society as a whole rather than simply making profits. BDC offers a variety of loans ranging from $20,000 to over $100,000. Financing eligibility is roughly categorized through operational periods, less than 12 months, 12 to 14 months, and 24 months or more, as well as a temporary Business Credit Availability Program (BCAP) for businesses impacted by COVID-19.

Lending Loop

In contrast to the other resources listed so far, Lending Loop is Canada’s first fully regulated peer-to-peer marketplace connecting small businesses to a lender that best suits your needs. Eligibility varies depending on your condition, but a quick check can be done here. The benefit of this platform lies in the lack of financial institution involvement, and no cut being taken. This can make for potentially more favourable interest rates.

OnDeck

OnDeck has over 100,000 customers worldwide and is publicly traded on the New York Stock Exchange. This site provides a variety of funds as well as ongoing support from a specialized lending advisor. The company has a large name and admittedly not the most competitive interest rates, the eligibility requirements are stricter compared to many other options, and fall closer to a traditional financial institution. However, OnDeck triumphs in its longevity, trust, and reliability. While this company funds small businesses, it is not especially fit for start-ups but rather more established businesses.

If you are looking to easily compare business loan options across companies, we recommend using an online loan search engine.

Online loan search engines are ideal for providing variety and comprehensive information in regards to business loans.

Loans Canada

Loans Canada is a Montreal-based site developed in 2012 designed to help Canadians everywhere meet their financial needs. This platform provides financing options including business loans, equipment financing, business line of credit, and much more with loans ranging from $500 to $300,000 depending on the lender. Loans Canada compares details regarding loan sizes, interest rates, and repayment terms across dozens of companies with a click of a button.

Smarter Loans

Smarter Loans is Canada’s first and biggest loan comparison website with over 80 financial companies offering loans, investing, insurance, and more. Small business loans include working capital, unsecured term loans, merchant cash advances, and invoice factoring. Commercial unsecured loans such as working capital loans typically ranging from $10,000 to $100,000 or as high as $500,000. In addition to comparing loan sizes, interest rates, and repayment terms between companies, Smarter Loans also offers the option to pre apply in which you can state your current situation and financial needs and have Smarter Loans determine the best fit lender for you.

COVID-19 has impacted us in ways we couldn’t imagine a year ago.

It may seem that this chapter never ends but with news of Canada beginning the vaccine rollout the future for small businesses is finally looking brighter. Now is the perfect time to expand your brand.

If your company has been impacted by the pandemic and needs a little boost to better position itself for success in 2021, reach out and start the conversation today.

 Carol Chen headshot

Carol Chen

Digital Marketing Coordinator
MYSTIQUE BRAND COMMUNICATIONS 

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Schedule time to review your current situation with us and discuss possible ways to optimize your brand experience to overcome your business challenges and reach your goals. Even if you choose not to use us, you’ll walk away with some great ideas to implement in your business today.