Canadians looking for decent investment returns and small business people in search of attractive financing have a new platform where they can help each other with the launch of Lending Loop.
Investment minimums are set at $50, which allows many more people to participate, Lending Loop’s CEO believes.
“Today is a brand new day for Canadians and small businesses across the country,” Cato Pastoll said. “With as little as $50, Canadians can lend their money to the thriving local coffee shop that needs new equipment to grow or the farm around the corner requiring staff to develop a farm-to-home produce delivery program.”
Mr. Pastoll and partner Brandon Vlaar started Lending Loop after seeing the difficulties many friends and family had squeezing money out of Canada’s highly centralized banking system. Those people seldom received anything, and when they did, it took forever.
According to a release, Canadian SMEs employ almost 90 percent of Canadians working in the private sector while producing 40 percent of GDP. Turned down by the big banks, they resort to high-interest options.
Lending Loop aims to simplify the ask by using technology to produce generate a fast and simple application process. Loans do not come into effect until they are fully funded, a measure Lending Loop says reduces the risk of delinquency. They state they also provide flexible repayment options.