5 Canadian Small Business Loans Options To Grow Your Company

In order to thrive in Canada’s market, companies need to acquire enough funding to expand their operations and increase working capital. Many companies apply for Canadian small business loans to obtain financing for equipment, relocation and hiring new employees. As a business owner operating out of Canada, you need to learn which loan best suits your needs. Read this post to discover the top Canadian small business loans options to grow your company.

Government-Guaranteed Loans

Many growing companies prefer Canada’s government-guaranteed loans. The most popular small business government loan program in the country is the Canada Small Business Financing Program (CSBFP). While the program does offer financing to a variety of businesses, its primary focus is to aid smaller companies in growing. The program offers capital to companies that acquire less than $10 million in revenue each year. If you meet this requirement, you can use the funding for a variety of purposes. The program permits companies to use the loans for purchasing buildings, equipment and even registration fees. Keep this Canadian small business loans option in mind as you seek financial leverage for your company.

Small Business Installment Loans

Another popular Canadian small business loans option to consider is the installment loan. This type of loan is for a fixed amount and requires repayment within a fixed period of time. Typically, lenders offer installment loan terms ranging from 2 to 7 years so small business owners can manage their cash flow efficiently. Banks usually require you to provide payment on a weekly, bi-weekly or monthly basis when taking out this type of loan as well. With a clear repayment program, this option is one of the best loans for small business available. Consider these factors when determining whether this loan is the best option for your growing Canadian company or not.

Community Loans

Moreover, growing small businesses in Canada often receive community loans. These loans stand out among the other options on this list because they do not come from traditional lending institutions. Business owners receive community loans from nonprofit organizations known as Community Investment Funds. These organizations were founded to assist small business owners who cannot receive funding from traditional lenders or lend money online. If you cannot qualify for a loan from a bank or other financial institution, consider applying for this Canadian small business loan.

Business Vehicle Loans

Small businesses in Canada receive capital from business vehicle loans as well. This is one of the best Canadian small business loans options for companies in need of vehicles. Some businesses only need on delivery van while others need dozens of sales force sedans. Regardless of where you stand, you can purchase the cars you need by financing a commercial vehicle in Canada. Leading lending institutions offer this type of loan to sole proprietorships, corporations, partnerships and incorporated association. If you operate as one of these entity types and need company vehicles, apply for this Canadian small business loans option.


Furthermore, many Canadian banks offer growing small businesses microloans. This business loan option works well for companies that only need a small amount of capital. Typically, microloans begin at $500 and rarely go beyond $150,000. Most companies that acquire this type of loan use the capital for inventory, furnishings and equipment. You can also use the funding to hire more employees or purchase machinery. Keep in mind that micro loans for small business are usually short-term as well. This means that you will have to pay off the amount you receive sooner than other lending options. Since the amount is smaller, this is not usually an issue for growing companies. Consider expanding your company with this Canadian small business loan option.

Before you apply for a Canadian small business loan to grow your company, you need to review your options. You can obtain funding from government-backed programs like the CSBFP. Many small business owners also apply for installment loans. If you cannot qualify for lending options at banks, reach out to community lending programs. Business vehicle loans work well for companies in need of business cars. Finally, a microloan is a great option if you do not need a large sum to expand. Consider these Canadian small business loan options to grow your company.

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