Business Loan Brokers: directory of firms

Start from the accurate position rather than an assumption in either direction. Arranging unsecured or generally secured business credit is not a licensed profession across Canada in the way that mortgage brokering is. There is no national register of business loan brokers to consult, no profession-wide entry requirement, and no disciplinary body that will hear a complaint simply because someone called themselves a broker. That is precisely why the checks you carry out yourself matter more here than in a licensed field.

The picture changes the moment real property secures the loan. Provincial mortgage brokering statutes attach to the activity of dealing in mortgages, whoever the borrower is. RECA states that anyone dealing in mortgages on behalf of another person for compensation, or representing themselves as a mortgage broker, must hold a mortgage broker licence unless an exemption applies. British Columbia's Mortgage Brokers Act prohibits carrying on business as a mortgage broker or submortgage broker without registration, and BCFSA warns that consumers using unregistered brokers are not protected by that Act. So if your financing will be secured against a building, ask for the licence and confirm it on the provincial register.

General law applies throughout regardless of licensing. The Competition Act prohibits false or misleading representations in a material respect, and the Competition Bureau explains that a court considers both the literal meaning of the information and the general impression it makes, that information is material if it could influence consumers to buy or use the advertised service, and that it is unnecessary to demonstrate anyone was actually deceived or misled. Marketing that promises guaranteed approval or certain outcomes is worth weighing against that standard.

Your existing bank already sees your transaction history, which shortens its diligence and sometimes produces a straightforward answer at a sensible cost. The weakness is the same as anywhere: you get one institution's view, shaped by its current appetite for your industry, and a decline tells you nothing about whether the request was reasonable. For businesses with an established relationship and an unremarkable request, going direct first costs little.

It is also worth knowing what exists before paying anyone to find it. The Canada Small Business Financing Program makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders; the loans are made by banks and credit unions rather than by government, and the financing can support working capital, equipment, intellectual property, renovations and other costs of starting and growing a business. The Business Development Bank of Canada lends directly to Canadian businesses for working capital, equipment and commercial real estate among other purposes. Both are approachable without an intermediary, so a broker's value should lie in access and preparation beyond what you could arrange in an afternoon.

Compensation arrangements vary widely in this market, and since no licensing regime standardises disclosure, you have to ask. Establish whether the broker is paid by you, by the lender, or by both; whether anything is payable if no financing is arranged; and whether compensation differs depending on which lender the file goes to, because that last point can quietly shape the advice you receive. Get the answer in writing before any work starts. A broker who is straightforward about being paid by lenders is easier to deal with than one who is vague about being paid at all.

LokalMatch lists business loan brokers as a directory so you can find and contact them yourself. This category is restricted here: we don't sell requests for this service, no one pays to be listed or ranked, and we do not screen, match, endorse or recommend any broker or lender. LokalMatch is not a referral service and receives nothing for connecting a business with a broker or a lender. Because this field has no profession-wide licence, do your own diligence: ask for references from businesses like yours, confirm any mortgage licence on the provincial register where real property is involved, and read what you are signing. What you read here is general information, not legal or financial advice.