These days, more than ever before, there are multiple small business loan products available to Canadian small business owners from dozens of new online lenders.
Many of them have “additional fees” in the fine print of their contracts so before you compare two or three competing offers, always get a final quote in writing.
Many companies have “origination fees” that add up to 5% of the quoted cost. Others have “insurance fees” or “admin fees”. Some companies will take $500 off the top of your loan even before you receive the funds. Others charge renewal fees. They do this so they can quote the lowest interest rate but after it’s all added up, it may not be the best rate you can find.
Ask up front about all of these extra fees. Always ask for the “total payback” amount and get it in writing.