Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: P2P, Lending, Digital Bonds, BNPL, Private Credit
The Hard Part of Building a Fintech Startup: A Conversation with Cato Pastoll, CEO and Co-Founder of Loop
Podcast | Jul 31, 2023
Image: Bank on loop
"The Hard Part" podcast with host, Evan McCann sits down with Cato Pastoll, the CEO and Co-Founder of Loop, for this discussion.
Loop is a company that offers tailor-made products including CAD/USD corporate cards, interest-free spending, corporate-level purchasing power, no-fee global payments, accessible growth capital, and real US dollar accounts to help businesses grow.
They delve into the journey of Loop, starting from its pivot from Lending Loop to what it is today. They explore why word of mouth has become one of their fastest growth channels and why caring about your customer is the ultimate flywheel for any business, and also discuss the changes needed in our banking regulations to foster a more conducive environment for businesses.
See: Process Flow Comparison: How VISA Works When Swiping a Credit Card at a Merchant’s Shop VS Digital Wallet
So, whether you're an entrepreneur, a business enthusiast, or someone interested in the dynamics of the financial industry, this episode is packed with insights that you wouldn't want to miss. Tune in and let's dive into the hard part of building and growing a business with Cato Pastoll.
Loop's new website: bankonloop.com
Connect with Cato Pastoll: Linkedin
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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Small Businesses Can Benefit from These Types of Loans
July 4, 2023
Image: Freepik/Drazen Zigic
Small businesses form the backbone of the Canadian economy. They boost local industry, drive innovation, and create jobs. In fact, businesses with 1 to 99 employees comprised 98.0% of all employer businesses in the country in 2022, according to Statistics Canada.
Expanding a small business, taking advantage of seasonal opportunities, or meeting costs in an unpredictable economy can require significant capital. Many companies try to utilize small business loans to finance current or future business activity.
From traditional bank loans to alternative lenders, there are several options available to entrepreneurs looking to secure financing:
Finding the Right Loan
Navigating the world of small business loans can be complex and intimidating. That’s why small businesses can benefit from using Levr.ai; a free and intelligent loans platform designed to make it easier for small businesses to navigate through funding options and secure the right financing.
In a nutshell, Levr.ai is a sophisticated software company that leverages artificial intelligence (AI) and machine learning (ML) to help applicants match with the best loan options and certified lenders. The application process is uber easy and secure.
Levr.ai guides you through the entire loan application process. Once you share some information about your business, the platform matches you with its top certified lenders for the funding your small business needs. Businesses are also free to get support from their business partners, financial advisors, or accountants during the application process. Levr.ai also makes it easy to complete your online loan application for multiple lenders by connecting to your online banking and accounting data.
Different Types of Small Business Loans
There are several types of small business loans available today, including term loans, merchant cash advances, and others. Each type of loan has its unique features and benefits.
1. Term Loans
Traditional Term Loans are the most common type of loans. Small businesses usually use them for specific purchases or investments. Term loans have a fixed repayment schedule. Their interest rates can either be fixed or variable.
2. Merchant Cash Advances
A merchant cash advance (MCA) is a type of business loan where a lender provides a lump sum payment in exchange for a portion of the business’s future sales. The loan repayment is made through automatic payments from the business’s bank account until the loan is paid in full.
MCAs are suitable options for businesses with good cash flow but don’t qualify for conventional loans and need fast and flexible funding options.
3. Equipment Loans
Small businesses needing expensive equipment such as machinery should consider equipment loans. There are different types of equipment loans. Lenders offer a lump sum of money to purchase equipment in a conventional equipment loan. The borrower repays the loan with interest over a fixed term.
Alternatively, the borrower can lease the equipment. Here, the lender purchases the equipment and leases it to the borrower. At the end of the term, the small business can purchase or return the equipment.
4. Invoice Factoring
Invoice factoring, also known as invoice financing or accounts receivable financing, is a fast and flexible option for small businesses. Companies can leverage their unpaid invoices to access working capital at a cost.
5. Line of Credit
A line of credit allows small businesses to borrow money up to a certain limit whenever needed. It’s a flexible option because small businesses only pay interest on the amount they borrow. They can also borrow and repay as needed.
6. SRED Loan Program
The SRED loan program is a form of cash advance. It’s available to Canadian businesses that have a good business plan and have engaged in successful R&D activities. The loan program can offer payment in installments or lump sums with flexible repayment terms, depending on the R&D project.
See: Why Small Businesses Invest in Stocks
Small business loans can be a valuable resource for entrepreneurs, offering the financial support required to start, grow, or sustain a business. That’s why it’s critical for small businesses to choose a loan that’s suited to their needs and financial situation. Working with an advanced loans platform can help small businesses match with the ideal financing options.
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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Canadian POS Financing on the Move: Financeit Acquires Simply Group’s Consumer Loan Business
FinanceIt | Release | Jun 26, 2023
Unsplash Sidekix Media, renovating kitchen
FinanceIt acquires Simply Group's consumer loan business
- Strategic Acquisition:
- Financeit’s acquisition of Simply Group's consumer loan business, including SNAP Home Finance and EcoHome Financial, signals a dynamic expansion in the point-of-sale (POS) financing sector in Canada.
- By integrating Simply Group's proficiency in home improvement financing and its $3 billion track record, Financeit is positioned to deliver an enriched merchant and consumer experience, while accelerating innovation in financing solutions.
- The merger brings together a combined strength of over 180 professionals, unlocking potential for a transformative impact on home improvement dealers and end-users.
- Leveraging Simply Group’s technology and dealer experience, along with Financeit's established market presence, the consolidated entity aims to revolutionize the home improvement consumer lending space with advanced products and services.
See: Empowering the Next Iteration of Consumer Finance
Michael Garrity, CEO of Financeit:
We’re thrilled to announce another milestone in our growth journey as we focus on expanding our market footprint and our enduring commitment to the Canadian POS financing market. The Simply Group Loan Business team has consistently showcased deep industry expertise, remarkable market agility, and an array of competitive products and services for dealers. By combining our two businesses, we are confident that we can create a transformative impact on the lives of home improvement dealers, helping them drive business growth.
View the 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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CIBC’s Mortgage Underwriting Troubles: A Long Road to Full Compliance
The Globel and Mail | James Bradshaw | Jun 20, 2023
Image: Unsplash/PiggyBank
The Canadian Imperial Bank of Commerce (CIBC) continues to face remediation orders over the bank's mortgage portfolio from Canada's banking regulator, the Office of the Superintendent of Financial Institutions (OSFI).
- Ongoing Regulatory Remediation:
- These orders have been in place for over a year, after an audit revealed that CIBC had breached rules limiting how indebted borrowers can be.
- The bank's mortgage portfolio included thousands of clients who, when combining their home-secured lines of credit with CIBC mortgages, exceeded the permitted regulatory ratios for debt.
- Although these issues did not involve fraud, they have required extensive review and system retooling, with CIBC enlisting the aid of consultants from Deloitte.
- The bank is still discovering problematic mortgages in its portfolio and anticipates up to two more years to fully rectify the situation. However, these cases are not expected to result in significantly higher losses on loans or have a substantial financial impact on the bank.
See: Fintech Opportunities in the Wake of Tightened Credit Liquidity in Canada
- Regulatory and Leadership Pressure:
- This protracted resolution process has strained relations with the regulator and increased pressure on CIBC's senior leadership.
- OSFI expects bank management and boards of directors to identify risks and ensure sound loan underwriting for residential mortgages.
- The issues identified by CIBC and OSFI only affect a small part of CIBC's $266-billion Canadian mortgage portfolio, largely due to administrative oversights and IT system flaws.
- However, their discovery has generated turbulence in one of CIBC's core businesses, given CIBC's high exposure to Canada's mortgage market, with around 55% of its loan book being mortgages and other real estate-secured loans, these issues have rekindled old investor anxieties.
Continue to the full article --> 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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Fintech Opportunities in the Wake of Tightened Credit Liquidity in Canada
Better Dwelling | Jun 20, 2023
Canada's bank regulator, the Office of The Superintendent of Financial Institutions, has increased the Domestic Stability Buffer (DSB) to 3.5% of risk-weighted assets in response to rising delinquencies and overleveraged households, which may create opportunities for fintech lenders offering alternative finance solutions.
- Regulatory Measures and Credit Throttling:
- Canada’s bank regulator, the Office of The Superintendent of Financial Institutions (OSFI), has increased the Domestic Stability Buffer (DSB) by 50 basis points to 3.5% of risk-weighted assets (RWA). This move, which follows a similar-sized increase in February, is designed to curb credit and raise borrowing costs amid concerns over a potential risk event. The increased DSB implies banks will need to set aside more capital, which could tighten credit availability and drive up costs for borrowers.
- This development presents a potential opportunity for fintech firms to fill the credit void left by traditional banks. By offering alternative lending solutions, fintech companies can step in to meet the demand for credit, potentially gaining market share in the process.
- The move to raise DSB marks the end of an era of low rates.
See: As Interest Rates Climb and the Tide Goes Out, BNPL’s Resiliency Will be Tested
- The financial environment is becoming more stringent, with regulators demanding higher levels of capital buffers. Fintech firms could capitalize on this by offering more flexible and accessible financial products and services. Fintech innovations such as risk modelling, credit scoring and AI can be utilized to provide customized, affordable credit solutions.
- Response to Overleveraged Households & Rising Delinquencies:
- The regulator's decision comes at a time when Canada’s systemically important banks are extending mortgage repayment terms longer than typically allowed.
- This move seems to be an attempt to avoid causing hardship for overleveraged borrowers. Increasing the DSB forces banks to become more conservative with their lending practices.
- By leveraging technology to assess risk, fintech firms could provide loans to customers who may be considered overleveraged by traditional standards, yet still have the capacity to repay.
Continue to the full article --> 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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Stripe Expands Its Issuing Platform with a New Charge Card Program for Fintech Startups
Stripe | Release | Jun 1, 2023
Image: Stripe
Stripe launches a new charge card program on its Stripe Issuing platform.
- Stripe is set to transform the fintech space with its new charge card program for Stripe Issuing, allowing fintech startups and platforms to offer flexible credit options via expense cards.
- This innovation creates new revenue streams and empowers small businesses with reliable credit access.
- Since its launch in 2018, Stripe Issuing has seen substantial usage, facilitating the creation of over 100 million cards in the US, UK, and EU, and supporting half a million daily transactions.
- Stripe simplifies the process of building a charge card program by handling repayment collection, lending compliance, licensing requirements, and more.
- The charge card program offers core features like funds flow, network connections, printing, and integration APIs, all while efficiently managing necessary compliance, bank partnerships, and ledgering.
- The launch of Stripe's charge card program addresses the increasing concern of 77% of small-to-medium-sized businesses (SMBs) over access to financing, according to a recent survey. This move will enable software platforms to provide the necessary capital for their customer's growth.
See: OpenAI and Stripe Announce Partnership to Monetize OpenAI’s Flagship Products
- Stripe's innovative solution caters to the cash flow needs of platforms by allowing them to send funds after transaction settlements, reducing the need for large cash reserves.
- Companies like Ramp, Emburse, Karat, and Coast are already benefiting from the charge card program, which is currently in beta in the US and set to expand to the EU and UK.
View the original 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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Affirm Partners with FICO to Enhance Credit Scoring for BNPL Loans
PaymentsDive | Caitlin Mullen | May 10, 2023
Image: Freepik/pch.vector
Affirm, the buy now, pay later (BNPL) provider, is partnering with FICO to build a unique credit scoring model that incorporates BNPL loans into credit and lending decisions.
Three key takeaways:
- Initiative to Improve BNPL Reporting: Affirm is the only BNPL provider that currently shares positive and negative loan information with credit reporting agencies. The company plans to enhance the credit scoring model in partnership with FICO to allow for better reporting and understanding of BNPL loans in the wider borrowing context.
- This initiative aims to address the Consumer Financial Protection Bureau's concerns about the lack of information being provided in the BNPL space, ensuring these loans are reported to credit reporting agencies.
See: Empowering the Next Iteration of Consumer Finance
- Financial Performance: For the fiscal third quarter ending March 31, Affirm reported a loss of $205.7 million, a wider loss compared to the same quarter in the previous year, despite a 7% increase in revenue to $381 million. This loss is attributed to a $52 million rise in tech and data analytics spending, and a $35 million charge tied to employee layoffs in February.
- Growth and Expansion: Affirm is actively pursuing international expansion, demonstrated by the purchase of U.K.-based BNPL firm Butter Holdings for about $15 million earlier this year. Despite challenging funding conditions, Affirm has increased its maximum annual percentage rate on interest-bearing loans from 30% to 36%. This move resulted in over half of the quarter's interest-bearing gross merchandise volume coming from merchants that adopted the higher limit.
Continue to the full article --> 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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