Lending Loop has launched an online marketplace to provide Canadians a better way to borrow and a smarter way to lend.
Traditionally, Canadians have had little choice when it comes to investing their money, the startup says. Purchasing stocks requires substantial capital, time and knowledge. Mutual funds make hard earned money less accessible. Bonds pay little in the way of interest and bank savings accounts yield even less.
“Today is a brand new day for Canadians and small businesses across the country,” explains CEO Cato Pastoll. “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.”
Lending Loop was founded by entrepreneurs Cato Pastoll and Brandon Vlaar who, after witnessing firsthand the difficulties their friends and loved ones experienced as small business owners dealing with big banks, realized a need for a new financial model for small business to have fast and easy access to the capital needed to grow in a global economy.
RELATED: Lending Loop Raises Seed Round
Lending Loop is leveraging technology to make the financial sector work more effectively for all Canadians, and small businesses in particular. It is the first peer-to-peer lending platform in Canada, and offers small businesses a better way to borrow, with a quick and easy application, flexible repayment options and considerably lower interest rates than alternative lenders. By using Lending Loop to access the capital they need to grow their business and expand their market, small business will be able to compete and win.
The company says it makes lending more accessible and affordable for Canadians than ever before by allowing them to lend as little as $50 to a business.