Back in December, Toronto-based raised $5.4 million in seed funding to accelerate the launch of its Canadian lending marketplace, which allows institutional lenders to fund consumer loans. Today, Borrowell announced that the platform is live, bringing the company one step closer to executing its vision of “providing Canadians with innovative alternatives in the financial services sector.”
“We believe Canadians deserve better borrowing options,” said Andrew Graham, Borrowell’s CEO, in a statement to BetaKit. “We reward responsible Canadians who have good credit by giving them an affordable alternative to the traditional, expensive and cumbersome options currently available. Our goal is to help Canadians conquer debt by giving them a smarter solution.”
Here’s how it works: Borrowell’s online platform accepts applications from Canadians with good credit scores, offering loans from institutional lenders up to $35,000 on three and five-year terms. Rates for these loans start at 5.9% APR, which is significantly lower than the 19.9% interest rate Borrowell says Canadians are typically paying.
Borrowell’s launch, and the impending launch of Vancouver’s Lendful, signals a massive disruption to traditional lending in Canada.