Toronto-based Lending Loop, which provides a peer-to-peer lending platform for small business loans, is now allowing corporations to invest in small business loans through its online platform.
The launch of corporate lending is expected to expand small business’ ability to access fast financing, while enabling more lenders to earn attractive returns. Back in October 2017, Lending Loop celebrated the milestone of providing $10 million in financing to small businesses. To date, Lending Loop says it has facilitated over $17.5 million in loans to businesses across Canada.
“The launch of corporate lending is a significant step forward for the industry in Canada because it expands the investor types who can participate in funding the growth of small businesses,” said Cato Pastoll, co-founder and CEO of Lending Loop. “We hope to continue increasing access for both investors and borrowers on our marketplace as it furthers our mission to create a new and better way to access capital.”
Lending Loop’s platform launched with the goal of allowing businesses to access capital from sources other than accredited investors. It allows Canadians to invest even $50 into a pool of larger loans. The company works to cut out the middleman by giving investors returns from the interest rate attached to the loan, which starts at 5.9 percent.