Previously Grow was the only peer-to-peer lender that was offering a credit check that did not affect the credit score. Now Borrowell and Amber Financial both offer a “soft” credit check that will not hurt your credit score during the initial application process.

Lending Loop has just worked out their issues with the provincial regulators and is back online connecting people who want to invest in businesses and the businesses that want to borrow money. However, if you are a start-up, you are still out of luck because they only lend to established small and medium sized businesses. The rates are from 7.5% to 26.5% depending on the credit rating and origination fee starts at 3.5% and goes up to 6.5%

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The loan size is between $5,000 to $35,000. They offer terms of 3 to 12 months.

Interest rate range is 5.99% – 24.99%

Minimum 6 month in business with 50K in annualized revenue.

Minimum personal credit score of 600

Origination fee of 1.5 to 3.5% of the loan.

For more information you can visit their website at www.lendified.com

Lending Loop focuses on larger loans but are currently having regulatory difficulties and can no longer lend out investor money until it is resolved. Currently they are using their own funds to fund the loans.

Grouplend has changed its name to Grow. Everything else has stayed the same except recently they lowered the lowest interest to 4.8% and extended their term to include 5 year terms.

This space, sometimes referred to as FinTech, is growing and changing rapidly.  I don’t see too much risk borrowing money from them, but lending your money through their systems would require high risk tolerance.

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So through Lending Loop the average Canadian can invest in small business loans. Once an account is open and funded, the investor can review loans that have been vetted by Lending Loop and placed into their risk categories. An investor can pledge a minimum of $50 to any one loan and is not permitted to fund 100% of a loan. It is highly recommended that the investors spread their investments among many loans to average out the risk of any individual business. Note Lending Loop charges a 1.5% annual fee to the investors.

For small business owners, it is another alternative to the banks. Depending on the assessed risk of the business and the length of time the money is needed, the interest rate varies from a low of 6% to 15.5% and their lender’s fee varies from 3.5% to 5.5%.  You can borrow up to $500,000 but your business must be in existence for 2 years or more and have annual revenue of $200,000 plus.

You can get more details by visiting their website: https://www.lendingloop.ca/

The post Lending Loop: Another Peer-to-Peer Lender for Small Businesses Enters the Canadian Market first appeared on John Chan Mortgages.