Finding Financing for your Canadian Online Business ©

Many people have ideas for an online business, or they’d like to expand their offline business into the eCommerce format.  There are a number of ways to finance a web-based business, or obtain additional funds to expand.

Equity Investors for Online Businesses

Investors may provide equity funding for a share of your business.  Equity financing solutions may include public offerings, venture capital, business incubators, angel investors, or public offerings.  Try searching locally to find investors, using keywords such as “angel investors British Columbia”.

Private Sector Financing

Financing from private sector institutions may be available to individuals who can prove they have a viable business plan, and the ability to pay off a loan.  You may be eligible for a business loan, line of credit (operating loans), etc.

Most institutions also require a personal investment on your part, or at least a demonstration of your commitment and ability to pay.  With interest rates so low, some netpreneurs take out a mortgage to finance their venture or for product development.  To find out if this is a viable solution for you, there are websites that provide information and current Canadian mortgage rates, like If you need to purchase a ‘brick & mortar’ building, a commercial mortgage is often the choice of entrepreneurs.  Don’t worry if you’re already self-employed, there are mortgage solutions for you too.

Government Funding for Online Businesses

Both the Canadian Federal Government and Provincial Governments have various business financing programs that assist in the purchase or expansion of small businesses.  Government financing programs may include grants, contributions, subsidies, or loan guarantees.  There are industry-specific opportunities available (such as technology), and programs intended to encourage export as well. is a wonderful source of information about these opportunities.

Business Financing from Non-Government Organizations

There are non-profit and community-based organizations that offer financing or assistance in finding it. has a listing of non-government organizations to get you started.

There are financing choices for virtually everyone in Canada, although it may take some searching to find the best solution for you.  You may even be able to combine several into one big fund for your business!

What have been your biggest challenges in funding your online business in Canada?  Have you found solutions?  Please tell us about it in the comments below.

✔ You may also be interested in reading:
Canadians Can Get Out of Debt With a Free Online Business
Starting a Canadian Small Business Costs Less Than You Think [Statistics]

Digital Business & Marketing Manager at Online Business Canada | Website | + posts

Melody McKinnon is an internet entrepreneur with 25 years of experience in a wide range of online business models, backed by a formal business education and enhanced by training and mentorship. She has owned or managed both educational and ecommerce websites. Her book, 7 Recession Proof Online Businesses to Start From Home, is available from all major ebook retailers.

Melody has worked with many businesses & brands in a multitude of capacities. She can often be found on,,, and, as well as other quality digital publications. Her content has earned reference links from highly-respected websites, magazines and university textbooks.

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Great financing tips, thanks!


It all seems so impossible when you live from paycheque to paycheque but you’ve given me some good ideas.

Janice Boyne

It’s the old catch 22… have to have money to make money!


I’m considering a mortgage as collateral so the calculators are appreciated. I don’t need much so I’m considering other options and this really helps map out my options.


This article provides a fantastic starting point for those about to venture into the confusing world of business financing.