Lending Loop, a new business lending marketplace, has opened its doors to businesses across Canada, aiming to be the first platform that connects businesses seeking capital with Canadian lenders. The financial technology start-up received its first round of financing from the Kirsh Group, and intends on using the seed capital to kick-start a Canadian peer-to-peer lending marketplace.
Reportedly, Lending Loop has been quietly developing its technology over the past year, with an intense focus on both simplifying and optimizing business financing for lenders and borrowers alike. As of today, businesses across Canada are able to complete a loan application on Lending Loop’s website. The company says the lending component of its marketplace will be rolled-out in the coming weeks.
The past five years have witnessed the dramatic global ascent of an industry commonly referred to as marketplace or peer-to-peer lending. While many platforms have gained traction internationally, the Canadian market remains untapped. Lending Loop hopes to bridge that gap, helping promising and rapidly growing businesses to obtain flexible financing at fair rates, while giving lenders the opportunity to earn attractive and transparent fixed income returns through a diverse set of lending opportunities.
Cato Pastoll, CEO of Lending Loop, shared:
“We are confident that our platform will prove to be a compelling alternative to high-cost private lenders and overly conservative Canadian banks for small businesses that are looking for flexible financing at fair rates. We are starting to witness the displacement of the traditional high-cost and highly cumbersome lending model by a twenty-first century online structure that can both stimulate local economies and put money back into the pockets of all Canadians. Small businesses are the backbone of every healthy economy worldwide and our goal at Lending Loop is to champion their growth across Canada through our innovative and user-friendly platform.”