Ultimate Guide for Guaranteed Approved Startup Business Loans With Bad Credit in Toronto, Ontario Canada (2025)

In Toronto, entrepreneurship comes with its fair share of hurdles, and a less-than-stellar credit score can be a significant roadblock when trying to secure a guaranteed startup business loan! But don’t let that discourage you – there are ways to overcome this obstacle, even if you live in Mississauga or Manitoba. To increase your chances of approval, it’s super important to understand the options available, from government-backed loans to alternative lenders, and from equipment financing to merchant cash advances. Check it out below!

Top 5 Banks in Toronto for Small Business Startup Loans

TD Bank

• Physical Address: 66 Wellington Street West, Toronto, ON M5K 1A2
• Phone Number: 1-866-222-3456
• Operating Hours: Monday-Wednesday 10:00 AM – 6:00 PM, Thursday-Friday 10:00 AM – 8:00 PM, Saturday 9:30 AM – 4:00 PM, Sunday Closed (Note: Hours may vary by branch)
• Types of Small Business Startup Loans Offered: TD offers the Business Accelerator Loan Program (BALP) supported by a guarantee from the Business Development Bank of Canada (BDC). This program offers loans between $25,000 and $500,000 for operating cash flow needs. They also offer other general business loans and lines of credit that startups may qualify for depending on their situation and credit history.
• Help with Bad Credit: TD’s lending policies require confirmation of acceptable business and personal credit history. While the BALP is partially guaranteed, personal guarantees are usually required, suggesting they may not be the best option for businesses with bad credit.
• Website: https://www.td.com/ca/en/business-banking/small-business/

RBC Royal Bank

• Physical Address: Royal Bank Plaza, 200 Bay Street, Toronto, Ontario, M5J2J5
• Phone Number: 1-800-769-2511
• Operating Hours: Monday-Wednesday 9:30 AM – 5:00 PM, Thursday 9:30 AM – 8:00 PM, Friday 9:30 AM – 6:00 PM, Saturday 9:30 AM – 4:00 PM (Note: Hours may vary by branch)
• Types of Small Business Startup Loans Offered: RBC participates in the Canada Small Business Financing Program (CSBFL), which can provide term loans up to $1,000,000 for purchasing assets. They also offer various business term loans and lines of credit that could be suitable for startups, depending on their specific needs and qualifications.
• Help with Bad Credit: As with most major banks, RBC typically requires a good credit history for business loans. The CSBFL program has its own eligibility criteria, which would likely include a review of creditworthiness.
• Website: https://www.rbcroyalbank.com/business/

Bank of Montreal (BMO)

• Physical Address: 1 York Gate Blvd, Toronto, Ontario, Canada (Note: This is one of many branches)
• Phone Number: Please check the specific branch for their direct phone number, or use the general inquiry line.
• Operating Hours: Monday-Wednesday 9:30 AM – 5:00 PM, Thursday-Friday 9:30 AM – 8:00 PM, Saturday 9:30 AM – 4:00 PM (Note: Hours may vary significantly by branch)
• Types of Small Business Startup Loans Offered: BMO offers the Canada Small Business Financing Program (CSBFP) and their own Small Business Installment Loans with flexible terms. They also have business lines of credit which can be useful for managing cash flow in a startup phase.
• Help with Bad Credit: BMO generally assesses creditworthiness as part of their loan application process. It is unlikely they offer startup loans specifically for businesses with bad credit.
• Website: https://www.bmo.com/en-ca/main/business/

Scotiabank

• Physical Address: Scotiabank Head Office, 44 King St West, Toronto ON M5H 1H1 (Note: This is the head office address)
• Phone Number: 1-877-552-5522 (Business Banking)
• Operating Hours: Monday-Wednesday 9:30 AM – 5:00 PM, Thursday-Friday 9:30 AM – 7:00 PM, Saturday 9:30 AM – 4:00 PM (Note: Hours may vary by branch)
• Types of Small Business Startup Loans Offered: Scotiabank participates in the Canadian Small Business Financing Program (CSBFP) Term Loan, which can help startups acquire financing for equipment, leasehold improvements, intangible assets, working capital, and property. They also offer other business loans and lines of credit.
• Help with Bad Credit: Scotiabank will typically review the credit history of the business owner(s) as part of their loan assessment. It is unlikely they have specific startup loan programs for bad credit.
• Website: https://www.scotiabank.com/ca/en/small-business.html

CIBC

• Physical Address: CIBC Headquarters, 81 Bay Street, Toronto (Note: This is the headquarters address)
• Phone Number: 1-800-465-2422 (Telephone Banking)
• Operating Hours: Hours vary significantly by branch. Please check the specific branch you are interested in.
• Types of Small Business Startup Loans Offered: CIBC offers the Canada Small Business Financing Program (CSBFP) Term Loan, providing financing for various purposes including real property, equipment, leasehold improvements, intangible assets, and working capital. They also have the Black Entrepreneur Program Loan and other general business financing options.
• Help with Bad Credit: CIBC assesses credit scores and business plans when considering loan applications. It is unlikely they offer specific startup loans for businesses with bad credit.
• Website: https://www.cibc.com/en/business.html

Top 5 Merchant Cash Advance Lenders in Toronto

Moneris Advance

• Physical Address: Please contact Moneris directly for their physical address as they primarily operate online and through their payment processing services.
• Phone Number: 1-877-398-3496 (Sales Inquiries: 1 855-463-5669)
• Operating Hours: Applications processed Monday to Friday, 8:00 AM – 5:00 PM EST.
• Types of Small Business Startup Loans Offered: Moneris Advance offers merchant cash advances, which are not technically loans but rather an advance on future sales. Repayment is automatically deducted as a percentage of your daily sales. The advance amount can be up to a maximum of $50,000.
• Helpful for Borrowers with Bad Credit Who Need a Guarantee: Merchant cash advances are often more accessible for businesses with less-than-perfect credit because the approval is primarily based on the business’s sales volume and history with Moneris as a payment processor, rather than traditional credit scores. Repayment is directly tied to sales, offering flexibility, although a personal guarantee might still be required in some cases.

Advantex Capital

• Physical Address: Here is their Google Map listing.
• Phone Number: (416) 992-9005
• Operating Hours: Not specified online, please contact them directly.
• Types of Small Business Startup Loans Offered: Advantex Capital provides merchant cash advances to small businesses. They emphasize providing capital for various needs like cash flow, renovations, and inventory. The funding amount is based on the business’s sales history.
• Helpful for Borrowers with Bad Credit Who Need a Guarantee: Advantex Capital states they understand the needs of businesses with potentially challenging credit histories. Merchant cash advances focus more on the business’s ongoing revenue through sales rather than relying heavily on past credit scores. While a guarantee might be part of their agreement, the primary factor is the business’s cash flow.

iCapital Financial Services

• Physical Address: 68 Jutland Rd Suite 7, Toronto, ON M8Z 0G7, Canada
• Phone Number: +14162517070
• Operating Hours: Not specified online, please contact them directly.
• Types of Small Business Startup Loans Offered: iCapital Financial Services offers merchant cash advances as an alternative to traditional loans for startups. They provide a lump sum based on the assessment of a business’s credit card receipts.
• Helpful for Borrowers with Bad Credit Who Need a Guarantee: iCapital explicitly mentions that even businesses with bad credit can get a cash advance through them, as long as they don’t have an open bankruptcy.

Swoop Funding

• Physical Address: 100 King Street West, Suite 5700, Toronto, ON M5X 1C7 (This is a shared office space).
• Phone Number: +1 833-917-9667
• Operating Hours: Not specified for direct customer visits as they operate online. Their platform is generally accessible 24/7 for inquiries and applications.
• Types of Small Business Startup Loans Offered: Swoop Funding is a platform that helps businesses find various types of financing, including merchant cash advances, business loans, and other funding options. They connect businesses with a network of lenders based on their needs and eligibility.
• Helpful for Borrowers with Bad Credit Who Need a Guarantee: As a marketplace, Swoop connects borrowers with lenders who may have more flexible criteria than traditional banks. Merchant cash advances, in particular, often focus more on revenue than credit score. The need for a guarantee would depend on the specific lender and the terms of the advance. Swoop’s platform can help businesses explore options that might be available to those with less-than-perfect credit.

2M7 Financial

• Physical Address: 18 King Street East, Suite 902, Toronto, ON M5C 1C4 (This is a shared office space).
• Phone Number: 1-888-217-3944
• Operating Hours: Monday to Friday: 9:00 AM – 5:00 PM EST (These are likely business hours for inquiries and processing).
• Types of Small Business Startup Loans Offered: 2M7 Financial specializes in providing various financing solutions for small and medium-sized businesses, including merchant cash advances, business loans, and equipment financing. Merchant cash advances are based on a percentage of future credit and debit card sales.
• Helpful for Borrowers with Bad Credit Who Need a Guarantee: 2M7 Financial indicates they offer solutions for businesses that may not qualify for traditional bank loans. Merchant cash advances are often more accessible for businesses with less-than-perfect credit as the approval is heavily based on consistent revenue. The requirement for a personal guarantee can vary depending on the specific deal and the assessed risk.

Greenbox Capital

• Physical Address: 1 Yonge Street, Suite 1801, Toronto, ON M5E 1W7 (This is a shared office space).
• Phone Number: +1 866-955-2538
• Operating Hours: Monday to Friday: 9:00 AM – 6:00 PM EST (These are likely business hours for inquiries and processing).
• Types of Small Business Startup Loans Offered: Greenbox Capital provides various financing options for small businesses, including merchant cash advances, business loans, and equipment financing. Their merchant cash advance product offers funding based on a business’s future sales.
• Helpful for Borrowers with Bad Credit Who Need a Guarantee: Greenbox Capital often works with businesses that may have challenges accessing traditional financing due to credit history. Merchant cash advances are typically more focused on revenue and daily sales than on credit scores. The need for a personal guarantee is assessed on a case-by-case basis. They aim to provide accessible funding for businesses that might be underserved by traditional lenders.

4 Super Important Canadian Considerations for Merchant Cash Advances in Toronto For Startup Owners to Ponder:

• Merchant cash advances (MCAs) can be a helpful option for startups in Canada, especially those with less-than-perfect credit, or if a bad credit borrower needs a Canadian advanced payment program, as approval is often based more on revenue than traditional credit scores.
• However, it’s crucial to understand that MCAs are not loans and typically come with a “factor rate” rather than an interest rate. This factor rate, along with fees, can make the overall cost of borrowing significantly higher than traditional bank loans.
• Repayment is usually a percentage of your daily or weekly sales, which can impact your cash flow.
• Always carefully review the terms and conditions, including the total repayment amount and any fees, before agreeing to a merchant cash advance.

It is advisable for businesses with bad credit to focus on improving their credit score and developing a strong business plan to increase their chances of securing funding.

Before we explore these alternatives, let’s set the record straight: bad credit doesn’t have to be a deal-breaker! However, it’s super important to acknowledge the challenges that come with it. By understanding the landscape, you can better position yourself for success. So, what are the options, and how can you navigate the world of startup business loans with bad credit?

Understanding Startup Business Loan Eligibility in Toronto, Ontario Canada in 2025

In Canada, small businesses looking to secure funding have a few key requirements to meet:

• To qualify for a Canada Small Business Financing loan, your annual revenue needs to be $10 million or less, and your business can’t be a farming operation.
• With a solid credit score, you can borrow up to $1.15 million to cover term loans, intangible assets, and working capital.
• However, a bad credit score will make it tough to secure a loan, so it’s essential to have a reliable business loan calculator to crunch the numbers.
• When you’re launching a startup, cash flow anxiety can be overwhelming. But as a Toronto-based entrepreneur, you’ve got a range of financing options to explore – even with a less-than-stellar credit history.
• The Canada Small Business Financing Loan is one avenue to consider, alongside alternative lenders like Greenbox Capital and the Business Development Bank of Canada.
• These institutions offer various financing solutions, including term loans, lines of credit, and merchant cash advances, to help get your venture off the ground.
• You’ll need to consider the loan options, repayment terms, and your financial history, which can affect not only approval but also the lenders you’ll be dealing with in Canada.

3 Surefire Tips for Securing a Private Business Loan in Toronto With Bad Credit

1. Securing a private business loan in Toronto with bad credit can be a tough hurdle, but it’s not insurmountable.
2. To increase your chances of approval, you’ll need to present a robust business plan, comprehensive financial statements, and bank statements that demonstrate your financial stability.
3. A credit score of 650 or higher will work in your favor, and be prepared to provide collateral to back your loan application!

The TLDR on Getting Your Guaranteed Startup Cash Even if You Have Really Bad Credit…Yes…Even in 2025!

By now you probably understand that getting approved in Toronto isn’t about rocket science; it’s about grasping the eligibility criteria, exploring alternative lenders, and crafting a solid loan application. Having a bad Canadian credit score shouldn’t hold you back from achieving your business goals. With persistence and the right strategy, you can land that loan and watch your business flourish in Toronto.