Only a few months since my last update and there are two new entrants into the space and a third one aiming for a 2015 start as well.
GroupLend and Borrowell are the first two online lending platforms. Both provide consumer loans. I covered them last time.
In February, Toronto-based Fundthrough opened for business as an alternative source for financing small to medium-sized businesses in Canada. It makes factoring or account receivables loans. Instead of basing the loan on your credit, it bases it on the credit worthiness of your customers amongst many other factors. So in the application, it is the list of customers and the current outstanding invoices that are most important.
In April, OnDeck, a US online lender to small businesses, announced that it would expand into Canada. It now offers business loan from $5000 to $150,000 in 6 months to 24 months terms. It operates in all Provinces and Territories except Quebec. The business has to be more than 1 year old, have annual revenue over $100,000 and the borrower’s credit has to be over 600.
OnDeck has delivered over $6 billions in loans since 2007. This is the first time a large online lender has made its way into Canada. How will the home-grown Canadian competition fare? Is the Canadian market that different from the US that the years of experience in the States will not give it an over whelming advantage?
Surely it is not scaring away new Canadian startup as Lendful plans to open its online doors later this year.
As Canada looks to be a new and profitable market, expects to see many more companies in this space before the numbers start to drop due to saturation.
Alternative lending.ca help people with difficult situations get financing and people in good financial situations get better financing through non-bank lenders. We operate out of Vancouver, BC, but can assist people in all of BC and selected locations in Alberta, Manitoba, Saskatchewan and Ontario.
