To make it easier for Canadians to get loans, one Vancouver-based startup has created an online lending solution.
Lendful, the latest pitch on The Disruptors, has created a lending platform that offers Canadians personal loans of up to $35,000 for three to five years. The platform was created to help Canadians who have a hard time getting loans from their standard banks. Earlier this year, Lendful secured $15 million from Alterna Bank, a subsidiary of credit union Alterna Savings.
“What that means is people who previously haven’t been able to get money from their financial institution like your standard bank now have the option to take a loan from us, versus taking a credit card,” said Alex Benjamin, founder and CEO of Lendful. Co-host Bruce Croxon says while the idea is smart, Lendful will have to set itself apart from is competitors.
“What I like is that, again, it’s another platform addressing a real problem,” said Croxon. “So yes, there’s an opportunity, but you still have to get people using the platform at an acceptable cost per acquisition. And now there’s all kinds of companies competing for this relatively small Canadian market of dissatisfied borrowers.”
Watch the whole pitch below:
BetaKit is a production partner on The Disruptors. Tune in to BNN every Thursday night at 7pm for full episodes!