Debt financing has advantages for 
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
Lending Loop Launches ‘Loop Card’ for Small Business Cross-border Transactions
Betakit | | Apr 21, 2022
Lending Loop has launched Loop to provide a wider range of financial services for e-commerce businesses. The company’s first product is a corporate card specifically for cross-border transactions. The card allows companies to purchase in multiple currencies without fees. It also provides an extended repayment grace period, and credit limits based on sales rather than personal assets, which is often the case when entrepreneurs look to access corporate cards through banks.
In pivoting from lending to a broader financial services play, Loop has entered an increasingly competitive market. In the United States, well-capitalized players like Brex, Ramp, and Jeeves have created corporate cards tailored to startups. And in Canada where the market is still fairly bare, up and comer Float has attracted more than 1,000 customers in the last year alone.
See: Fintech Card Space is Growing: Brim Financial, Float, Caary Capital, Jeeves, Neo Financial
However, Pastoll is adamant that Loop’s product is different from the others, specifically targeting Canadian-based e-commerce businesses that are doing business internationally.
“Our product is specifically built for this customer segment that is doing business cross border,” said Pastoll. “And we’re understanding the two key things: working capital and needing to move money seamlessly and cost-effectively around the world. Those are like core tenants that are important to e-commerce businesses.”
Businesses can spend and make payments in CAD, USD, GBP and EUR currencies without foreign exchange rate conversions and fees. The Loop Card also provides 55 days of interest-free spending, which the startup argues is the longest interest-free period in the industry. For businesses involved in freight shipping from canada to us, such features can be particularly beneficial in managing cross-border transactions efficiently.
See: Fintech Fridays EP46: Making Business Borderless: International Payments and Partnerships
“The reason we’re offering that value prop is because we listened to e-commerce founders and heard, ‘I need the ability to basically push my expenses down the road so I can grow my business,’” said Pastoll.
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View the Lending Loop press 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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How to Refinansiering a Personal Loan?
Guest Post | April 19, 2022
Taking out a loan could be the best way to attend to pressing financial issues. But experts advise that you think about how you intend to pay back a loan before applying for one. You can expect to find lenders who can provide you with financial assistance if you have good credit but surely will face full wrath if you don’t comply with the payment terms. While you surely want to think carefully about putting a personal loan to good use, you also want to map out a strategy that can help you pay back the loan. And in a situation where it seems like you may be unable to complete the payment want to consider refinancing. You will find below all you need to know about refinancing a loan.
What is Loan Refinancing?
This is simply the process of taking out a new loan to pay an old one. And it has proven to be effective in putting to rest the stress that comes with paying back loans. This could help provide you with a good deal that comes with lower repayments and interest rates. When done correctly, this should help make debt repayment more affordable for you. And this is why you want to be critical about choosing the right refinansiering option when looking to pay back a debt.
It does come with advantages such as lower rates and giving you an option to pay back a loan. But you also want to know that there are setbacks that could come up if you are not careful. One big drawback is that it could affect your credit score seeing as you are taking up more debts to pay back an old one. But you could also be at risk of an initial high repayment option while offsetting the previous debt. But in the long run, you do have the comfort of relaxing knowing that you get a better offer that can help you with the loan repayment.
Why Consider Refinancing?
The process of paying out a loan monthly could be a lot to cope with especially if you don’t have a lot coming in at the end of the month. And many people in this situation surely will need a breather that can help them cope with the stress of repayment. This is why most people opt for refinancing. It helps to reduce the amount that you pay out monthly which surely will allow you to take up other projects.
You only want to consider an option that is cheaper and allows you to make repayments in the shortest possible time. You want to be done with it once and for all and relax better. It could be a lot stressful knowing that you have debts to pay at the end of the month, especially if you don’t take home much at the end of the month. This page has tips on how to be debt-free this year.
How to Refinance your Loan?
As soon as you conclude that you will be considering the refinance option, you want to begin by searching for the best loan financiers in the business. And this is where it gets challenging for most people as they aren’t always sure about what to look for when shopping for loans.
Finding a New Personal Loan
The new loan to shop for will have to come with a lower interest rate than the one you already have. You will need to keep in mind the overall cost at the end of the day. So you want to consider the length and if any charges come with early repayment. What you want to look out for is the option that will be cheaper in the long run. But this doesn’t mean that you should jump on any cheap refinance loans you find. You want to do well to know how to identify the best lenders in the business.
You can ask for guidance from a financial adviser who can help you with finding the right option for you. It is also possible to find good comparison sites that regularly update their website with the top-performing loans and help you compare them according to the length of repayment and interest rates. This can help you easily arrive at the best option to go with.
Boost your Credit Score
A higher credit score can open a lot of doors when looking to access loans as this can only help guarantee the lenders that you can payback. And if your credit score is poor may not be able to get loans with good rates as any lender looking to take the risk with you may want to do so at a high rate. There is a lot you can do to improve your credit score and you want to start by getting a credit report to know exactly where you stand. You want to also take steps to reduce your spending and pay off any credit card debt that you may have. It is always best to try and commit to loan repayments as this can help earn you points that can boost your ratings with lenders. This link https://www.investopedia.com/how-to-improve-your-credit-score-4590097 has tips on how to improve your credit score.
Use Eligibility Checkers
You can save yourself the stress of searching for the right refinance option if you use an eligibility checker that makes it easy to find out if you qualify for a type of loan. This will provide you with a long list of available options to choose from and helps you compare using criteria such as interest rates and payment term. This will provide you with an estimate of how much it will cost you without impacting negatively your credit score.
Putting things in Order
You obviously will be shopping for refinancing loans to pay back old ones. And once you do get approval want to get with the existing lenders to conclude about paying out the debt. You should ensure that you close the account with them and put a stop to any future payments. The next thing will be to ensure that you set up payments regularly for the new one and begin repayments.
Final Note
The option of refinancing personal loans could be the right way to pay back a debt and be free from expensive monthly repayments. You want to follow the expert tips suggested above to help you with all you need to complete the process of paying back a loan.
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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Why Apple Acquired An ‘Open Banking’ Fintech
Forbes | Ron Shevlin | Mar 27, 2022
The Apple-oids in Cupertino must eat this stuff up. Every time Apple makes an acquisition, the technology world—and increasingly now, the fintechaverse—goes into hyper speculation mode, trying to figure out why the company made the purchase and what it plans to do with the acquired firm.
See: Financial Consumer Agency of Canada publishes BNPL pilot study
What does Credit Kudos do?
via their Website: “Credit Kudos’ intelligent products enable businesses to leverage Open Banking to enhance affordability and risk assessments. Our predictive insights are built by combining transaction and loan outcome data. Our products help lenders streamline underwriting, improve accuracy in decision-making, and support customers after acquisition through our engagement tools.”
Why Apple Wants Credit Kudos
BNPL acquisitions have been occurring faster than Ben Affleck finds new girlfriends:
- Block, nee Square, acquired AfterPay for somewhere between $15 million and $29 million (the valuation was at the higher amount when the deal was announced, but Block’s stock price fell by ~50% by the time the deal closed).
See: UK Research: How consumers use savings apps
- PayPal purchased BNPL company Paidy in 2021 for $2.7 billion.
- Zip acquired New York-based Quadpay in 2020 for nearly $300 million, and is now looking to purchase Sezzle.
It would be a real coup for Apple to acquire a BNPL capability for just $150 million.
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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What to Know About Borrowing Against Crypto
Guest Post | Mar 25, 2022
The world of crypto is at this point advancing toward being mainstream very quickly. Cryptocurrency is something more and more people are using for transactions and as a payment method. Crypto is also an investment opportunity.
Beyond those applications, crypto borrowing and lending are growing in popularity as well.
Crypto lending is a type of Decentralized Finance or DeFi. With DeFi, investors can lend their crypto to borrowers. The benefit for a lender is that you can get interest payments in exchange, which are known as crypto dividends. There are a number of platforms specializing in lending crypto.
While the benefits of acting as a lender may be apparent—you can earn on your holdings passively, what about the perspective of a borrower?
Below, we delve into some of the things to know about borrowing against crypto and the pros and cons of doing so.
An Overview of Crypto Lending
Crypto lending, as mentioned, lets people who hold crypto have the potential to earn interest on it.
If you’re someone with ten bitcoins as an example, and you want to earn a steady stream of passive income, you can deposit them into a crypto lending platform wallet. Then, every week or month, you receive interest.
Interest rates vary. On the low side, interest rates may be around 3%, and on the high side, as much as 17%.
Borrowers can stake their cryptocurrency as a guarantee that they’ll repay the loan or as security. Then, investors can sell their crypto assets in the event the borrower doesn’t pay off the loan, providing a route to cover losses.
Most platforms will ask a borrower to stake anywhere from 20% to 50% of the loan in crypto.
A third party is required to connect a borrower to a lender. A borrower can be an individual as well as a business requiring funding.
There are a few steps that occur in general in the process.
The borrower finds a platform they want to use. Once they identify the platform, they request a crypto loan.
A borrower stakes their crypto collateral when the loan request is accepted by the platform. Until the borrower can pay back the loan in its entirety, they won’t be able to get back the stakes.
The lender automatically funds the loan through the platform. The lender then receives regular interest payments. Once a borrower pays off the complete loan, they get back their collateral crypto.
Common Features of Crypto Loans
If you get a crypto-backed loan, it’s one requiring collateral, which is the stake. In many ways, a crypto loan has similarities to a car loan or a home loan because you have an asset securing your funds.
Cryptocurrency loan platforms tend to offer interest rates that may be comparatively low—often in the single digits. That’s going to nearly always be less than the interest rates on a credit card or an unsecured personal loan.
Crypto loans aren’t usually as cheap as a car or home loan, however, so you shouldn’t use this option to make a big purchase.
You will almost always face limits on how much you can borrow. A lot of platforms will let you borrow up to 50% of the value of your crypto, but some will go all the way up to 90%. You receive your loan funds as USD or a digital currency.
See: Rise of Regulatory Compliant DeFi Protocols
There’s almost never a credit check when you apply for a loan backed by crypto. If you don’t have perfect credit or you have a limited credit history, this can be one of the biggest pros that you might think about with this personal finance option.
The funding will usually be fast—often with funding coming through the same business day. For someone who needs fast cash, that holds a lot of appeal.
For lenders, the upsides of crypto loans include the fact that you’re probably going to get higher returns than using something like a savings account, and you don’t have to lock in your assets.
What To Keep In Mind Before You Borrow Cryptocurrency
If you’re considering borrowing crypto, you need to choose the right platform, making sure that it’s legitimate and secure. After you find a reliable platform, taking out a crypto loan tends to be a simpler, easier process than getting a traditional loan.
The loan amount is going to depend on how much collateral you can use. The loan-to-value ratio in this context is the amount of the loan compared to the value of the collateral.
Because of the inherent volatility of crypto markets, these loans usually have extremely low LTV ratios.
Other considerations include:
- You could be subject to what’s called a margin call. If you borrow against a big portion of your holdings and the price goes down, which often happens because of crypto’s volatility, you might need to deposit more collateral in the form of more crypto. Another option in this situation would be that the lending platform would sell some of your holdings, reducing the LTV ratio. You have to be very careful about how much leverage you can use as a result.
- If you use crypto to secure a loan, it’s locked in until you pay it off in full. If you faced an emergency where you needed to liquidate your holdings, you wouldn’t be able to. Also, if there’s a big drop in crypto prices, you can’t sell to limit the losses.
- The repayment terms can vary widely between one another, so be aware that many of these loans are very short-term.
Finally, you can’t use any coin to get a loan. Some platforms will only accept a limited number of options, while other platforms might accept dozens.
Getting a crypto-backed loan is a growing possibility for consumers, but also one with risks and considerations to keep in mind before jumping in. As with anything in personal finance, weigh the pros and cons before doing anything. Along with researching the loans in general, make sure you choose the best platform for your needs.
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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Can You Make A Cash Advance Online?
Guest Post | Mar 24, 2022
Do you ever wonder what it is like to get quick cash/ advance online? Do you have questions regarding the system of giving cash advances online? If you want to know more about how this online system operates, then continue on reading to find out all there is to know.
Workings of cash online
It does not matter whether you are someone who has to pay for medical bills, recently suffered from illness, or needs to pay pending payments; there are simple and quick ways that you could easily get funds from online. Now you might be wondering how reliable they are and on what basis do these online websites/corporations lend money to borrowers.
See: Solution to Consumer-Centric Payments Innovation in America
The reason why they are so popular is that these cash advances charge high fees just for you to borrow them. Although you can get a hold of money quickly, you do have to pay it back in a week or two, and if you fail to do so, you might get late fees charged.
Difference of cash advance and other loans
Many people have their doubts regarding the workings of cash advance online as they believe it or be a scam or fraud when this is not the case at all. One of the differences between cash advances and other forms of loans is the fixed rate that is applied. The rate in cash advance is much higher than the traditional loan system.
On average, you could get a loan of around 500 dollars which is paid back in a day or two, whilst in another loan system, the loan itself is high and can be paid back in years rather than days.
Getting cash advance with bad credit
When you are getting a cash advance online, you do not have to go through the traditional process of giving credit/ bank information or any personal finance data, but rather have to provide them with the eligibility of your employment and pay stubs. Now what this essentially means is that you could still get cash online even if you have overall bad credit. If for some reason, you are looking to get a cash advance online that comes with a lower interest fee, you could get it if you have an excellent credit score. If you want to know more, click on the cash advance app.
Pros of cash advance
When it comes to talking about the advantages, there are countless such as being extremely easy to qualify for. Unlike other loan methods, in cash advance, you do not have to go through multiple steps and gather documents, etc.
Although there will be some background checks made, the overall process is relatively quicker and more efficient.
Another benefit of cash advances online is that you could use them to solve your urgent problems such as pending taxes/ payments/ bills/ and much more.
Thirdly, the overall process of applying for a cash advance is easy, meaning that all you have to do is visit the webpage and apply online. After you are done, you just have to wait for a few hours before getting a reply back.
Conclusion
So now you know how cash advance online operates and what are the core elements to it. In recent times the use of cash advance online has become quite popular due to its efficiency and high reliability.
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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What’s the difference between lenders and investors?
BDC | Mallory McKewen | Mar 1, 2022
Debt financing has advantages for early-stage firms. But preparing a loan request is very different than pitching an equity investor.
Here’s a typical path for many early-stage firms. The company is seeking funds to scale, grow or develop a new business line. The first instinct is often to prepare a pitch for equity financing from venture capital or other investors.
See: Debt vs. Equity Financing: Pros And Cons For Entrepreneurs
At some point, the company hears about the benefits of debt financing. A loan is non-dilutive, usually cheaper than equity and preserves control. It’s also generally available more quickly and can come with flexible repayment terms.
Lenders want to see proof they will get repaid
The fact is that forecasts are important not only for a loan application, but also for running your business. They show ups and downs in your cash flow and help you anticipate when you could be short of funds to pay bills or payroll.
Here's a cash flow projection tool
See: Convertible Debt vs. Equity: Which Is Right for Your Startup?
| Investors | Lenders | |
| The pitch | Needs to be exciting with a focus on growth potential, hungry founders and an inspiring story. | Want to see proof that the company has the means to repay the loan. Should include a detailed and realistic cash flow forecast, as well as accountant-reviewed financial statements or a tax assessment for the previous year. |
| Financial projections | Often stretch out to five years and are broken down by year. | Projections should be broken down by month and go out one or two years. Should adjust for seasonality and scenarios. |
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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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Wealthsimple exits UK market (for now) – Too many investment apps in the UK?
Betakit | | Dec 6, 2021
As Wealthsimple exits another international market, the Canadian FinTech giant has completed the transition begun earlier this year to focus solely on Canada.
Wealthsimple announced today that the company has sold its UK book of business to European digital wealth manager Moneyfarm (terms of the deal were not disclosed). Wealthsimple UK will transfer its existing 16,000 customers to Moneyfarm by end of January next year, and no longer provide advisory services.
The sale is the last step in a transition out of international markets begun earlier this year. Wealthsimple sold its US book of business to Betterment in March, citing a desire to focus more directly on the Canadian market.
“I think what you’ve seen from us, as we’ve divested from the advisors business a year ago, as we left the US market to focus on Canada, it’s about focus,” Katchen said, referencing Wealthsimple’s sale of its advisory service in 2020.
See: Wealthsimple adds crypto portfolios to group-retirement plans
In contrast to its market scale-back, Wealthsimple has been aggressive in expanding its product offerings, adding savings and spending, cryptocurrency asset purchasing and spending, as well as peer-to-peer payments. In June, Katchen also told BetaKit that the company is exploring credit and insurance offerings.
Still, at that time, the CEO noted “our ambitions remain beyond Canada, and certainly we’re excited about other markets in time.”
The phrasing closely mirrors that of Murphree, which indicates Wealthsimple might not remain Canada-only forever.
Before new markets might come an IPO. In 2019, Katchen told BetaKit that Wealthsimple had set a target of $20 billion in assets under administration (AUA) before considering an initial public offering. According to the company, Wealthsimple currently sits at $15 billion in AUA, with over 2.5 million clients and tax filers across its Invest, Trade, Crypto, Tax, and Cash services; that’s three-quarters of the way to the finish line and a significant number of customers.
At the start of the decade, the standard FinTech approach to growth was to own one segment of the local financial value chain and scale to own it globally. Such global ambitions have mostly been dashed by a highly-regulated space where regulations differ per market, limiting the traditional scaling benefits of technology businesses (see Revolut’s on and off and perhaps on again-relationship with Canada).
See: Rise of the super app
Following this year’s Money 20/20 conference in Las Vegas, the aspiration for FinTechs now seems to be becoming financial services ‘super apps’, adopting the model of Chinese giants like Alipay and WeChat. Both Revolut and PayPal have warmed up to the branding, and with some analysts skeptical that local wedge-product incumbents have what it take to compete globally with the likes of Apple and Amazon, the proposition of using regulatory hurdles as a walled garden to becoming a national FinTech super app seems quite appealing.
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The Armchair Trader | | Dec 6, 2021
Low cost investment app Wealthsimple announces exit from UK market
Investment app Wealthsimple has announced it is closing down its UK operations and transferring its existing clients over to rival service Moneyfarm. The Canadian-based investment service said it would instead be refocusing efforts on its Canadian clients.
Wealthsimple had been active in the UK offering low cost investment services for almost five years. The company said it had contacted all its UK customers today about the transfer to Moneyfarm. Eligible assets will be transferred over in cash and will be reinvested in Moneyfarm portfolios based on the client’s investment goals.
Too many investment apps in the UK?
The decision by Wealthsimple to pack its bags is being seen by some experts as evidence that the low cost money app game is getting a little overcrowded. Further withdrawals and collapses are anticipated next year, including some M&A activity. There just seem to be too many so-called robo-advisers operating in the UK market, and margins are very thin indeed.
See: How Do Canadian Discount Brokers Compare With Robinhood?
“The difference between setting up an app-based investment service and full financial advice couldn’t be larger and the general public is clearly waking up to this,” said Adam Walkom, co-founder of IFA Permanent Wealth Partners in London. “Finance can be scary and intimidating and people can and will make mistakes. That’s unfortunate but there is no substitute for a real person to talk through your situation and help you. Yes, of course it costs more, but what price do you put on peace of mind and long-term wealth building?”
The apps have succeeded in assisting many first time investors into the market in a cost-effective way, including helping them to benefit from the massive rally in stocks last year. But now it does look as if the UK market has become too crowded. Some pundits are wondering this morning whether Wealthsimple was getting distracted by the Canadian market.
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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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