1. Term loans
A term business loan gives you a lump sum that you repay in fixed instalments over a set term. It is the most predictable form of financing and works well for expansions, renovations, and large purchases.
2. Business lines of credit
A business line of credit gives you a limit you can draw from, repay, and draw again. You only pay interest on what you use, which makes it ideal for smoothing uneven months or handling surprises.
3. Working capital loans
Working capital loans are short-term loans designed to cover day-to-day operating costs such as payroll, rent, and inventory while you wait for revenue to catch up.
4. Equipment financing
Equipment financing funds the purchase of vehicles, machinery, or technology. Because the equipment secures the loan, approval can be easier and rates lower than unsecured options.
5. Merchant cash advances
A merchant cash advance provides cash in exchange for a portion of future card or daily sales. It is fast and flexible, but the cost is typically higher, so it suits short-term needs with a clear return.
6. Debt consolidation loans
Business debt consolidation replaces several expensive balances — often stacked advances — with one payment, which can lower your total cost and free up daily cash flow.
7. Government-backed loans
Programs such as the Canada Small Business Financing Program share risk with lenders to help businesses access credit. They are slower to arrange but can offer favourable terms.
Frequently asked questions
What is the easiest type of business loan to get?
Merchant cash advances and revenue-based working capital loans are usually the easiest to qualify for because approval depends mostly on consistent sales rather than credit or collateral.
Which business loan has the lowest cost?
Secured term loans and government-backed loans usually carry the lowest rates, followed by equipment financing and lines of credit.