Canadian fintech Lending Loop has launched an innovative line of credit offering after observing the rapidly changing landscape for small businesses.
Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
Ahead of Busiest Holiday Shopping Season on Record, Loop Launches First-Of-Its-Kind Line of Credit for Growing eCommerce Brands
Lending Loop | Thiago De Oliveira | Aug 25, 2020
Canadian fintech Lending Loop has launched an innovative line of credit offering after observing the rapidly changing landscape for small businesses.
TORONTO, ON, Aug 25th, 2020 -- Lending Loop, Canada’s leading small business lending platform, today announced the creation of a new brand “Loop” (getloop.ca) to support growing eCommerce brands. With Q4 2020 expected to be the busiest time for online sellers in history, many brands are searching for cash in order to stock up on much needed inventory - Loop has the solution.
See: Digital Financial Inclusion in the Times of COVID-19
Loop now offers a new line of credit that is specifically focused on scaling eCommerce businesses who need working capital support to assist with their growth. Loop allows brands to integrate the line of credit with their existing technology in order to provide access to a “real-time credit limit”. Unlike with other finance & lending providers where you typically have to re-apply for funding or wait for an annual re-evaluation, this new offering is a modern approach to funding that offers fast growing direct-to-consumer brands in Canada a dynamic credit limit based on the real-time performance of their eCommerce store.
The move to create a new product that supports eCommerce brands was largely fueled by the shift in consumer behaviours that was brought on by the pandemic.
“COVID-19 has undoubtedly changed the small business landscape and the effects are likely to continue to be felt for years to come” explained Cato Pastoll, CEO. “After the initial chaos caused by the pandemic, we witnessed a rapid increase in business activity for both existing clients who were already selling online as well as those who started offering online shopping options for their customers. Our many conversations with experienced eCommerce entrepreneurs made it clear that there is a significant funding gap and our goal quickly became creating a product that is both founder-friendly and affordable” he explained.
Loop’s new line of credit provides financing to eCommerce companies that meet a minimum eligibility requirement of $5,000 average monthly revenue and at least six months of consistent revenue history. Loop believes that selling equity or giving up a percentage of your sales in order to manage cash flow is a bad deal for entrepreneurs. Businesses can get a credit limit for no cost by requesting access at getloop.ca
See: Lending Loop Surpasses $50 million Milestone and helps thousands of Canadian Businesses and Investors
Features and benefits of Loop’s new line of credit include:
- A dynamic credit limit which automatically adjusts every month based on reviews of real time performance to enable fast growing brands to continue to access working capital.
- Industry leading interest rates with borrowing costs starting at 1% per month to help with cash flow and improve product margins
- A highly flexible payback structure to minimize any pressure on cash flow
- The ability to pay suppliers & vendors directly which saves time and save cost on traditional bank transfer and foreign exchange fees
- An easy online 10 minute application and receive a credit limit in as little as 24 hours.
- A semi-annual interest rate review to ensure businesses are always accessing the best rate possible
About Lending Loop: Lending Loop has worked with almost 1,000 businesses across Canada, helping them to access over $75 Million of fast and affordable financing. Our mission is to provide entrepreneurs and founders with the financial products that make things simpler and easier while supporting them financially so they can focus on growing their business.
View release: here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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