Now you can listen to our blog post, "How to Get a Farm Mortgage in…
Now you can listen to our blog post, “Lending Loop Review: Pros, Cons, Fees” while on the go.
What is Lending Loop?
Lending Loop is an online marketplace that connects borrowers with investors. It aims to solve the “chicken and egg” problem of getting capital for a project or business by connecting borrowers with investors.
The platform uses intelligent software and machine learning to provide credit decisions in seconds, which means that it can process more loans than traditional banks in the same amount of time.
Lending Loop has also developed a new credit scoring model, which takes into account factors such as social media activity, mobile phone usage, and other data points that are not available through traditional credit bureaus.
Business owners complete an application, which is reviewed by the Lending Loop staff, and then they are offered a loan with a set period and interest rate. If the loan is approved, it is published on their marketplace, where lenders can commit to granting them the funds they require.
Lending Loop Qualification
Although Lending Loop’s standards are a little more relaxed than those of many other Canadian business lenders, there are a few prerequisites that you must meet in order to be approved for a small company loan. After all, the more loans you apply for, the more difficult it is to get approved.
To be qualified for a small company loan from Lending Loop, you must meet the following criteria:
- A company that has been in business for at least a year.
- $100,000 in annual revenue minimum
- A credit score of 640 or higher
They may also need to look at some of your company’s financial paperwork, such as but not limited to:
- financial accounts from the previous two fiscal years
- financial statements interim
- Bank statements from the previous six months
- CRA’s most recent Notice of Assessment
Remember that each lender has various requirements for the consumers they’ll accept, so check the Lending Loop website or call one of their customer service representatives to discover more about their comprehensive loan requirements.
How to Make a Small Business Loan Application?
The full loan application procedure with Lending Loop may be done online in minutes, and one of their account managers should be accessible to assist you at any time.
The following is a typical loan application process:
- Create a Lending Loop account and then click “Apply Now.”
- After that, you can complete the appropriate steps and submit your application.
- You can submit your application for review after it’s finished.
- You must accept their terms and electronically sign your agreement if you are authorised.
- The Lending Loop marketplace will then list your loan.
- After that, outside lenders can go over your listing and decide whether or not to support your loan.
Once your loan has been advertised on their marketplace, your profile will be visible for 30 days or until it has been fully funded.
Small Business Loan Lending Features that Come with a Lending Loop
According to the Borrower’s Guide, Loop offers unsecured loans ranging from $5,000 to $500,000.
If you join Lending Loop or apply for a small business loan with them, you’ll get access to the following features:
- Flexible payback options of 3 to 5 years are available.
- Starting interest rates are 5.9%.
- Opportunity to participate in one of Lending Loop’s partnering programmes
- Access to a variety of borrowing alternatives from a variety of lenders
Fees Associated With Lending Loop
While the funding you receive from a Lending Loop small business loan can be extremely beneficial to your company, there are a few related charges to consider before applying, including but not limited to:
- Your loan balance
- Your interest rate is between 5.9% and 26.50 per cent.
- The origination fee ranges from 3% to 9.99 per cent of the total loan amount.
Despite the fact that each lender’s loan products have distinct needs and restrictions, the best thing you can do is apply when you and your company are financially secure. In other words, the easier it is for you to make your loan payments on time, the more financing and better interest rates you will be eligible for.
It’s also worth noting that when you apply, Lending Loop will run your Equifax business credit record.
Benefits and Drawbacks of a Small Business Loan from Lending Loop
Let’s wrap up our Lending Loop review with a quick rundown of all the potential rewards and cons you can face once you’ve been authorised. Take a close look at these advantages and disadvantages, as they might have a significant positive or negative impact on your company’s financial health.
You can get a lot of money from a lot of different Canadian lenders.
Good payments will increase your business credit score because they report to Equifax.
Their website provides access to a variety of programmes and services.
Every province and territory in Canada is served by Lending Loop.
Access to the correct funding can help your firm in a variety of ways.
If your company is less than a year old, you will not be eligible.
If your company’s finances aren’t in good shape, high rates and fees may apply. Missing payments might ruin your company’s credit rating and financial health.
To apply effectively, you must submit numerous personal and financial papers.
The Bottom Line
At Lionsgate, we specialize in helping people get the extra cash they need and obtain funding for private mortgages, as well as for other real estate transactions. If you are looking to buy land in Canada, get a mortgage or apply for a loan, fill out the form below. Or, You can leave us a message and we will try to connect you with local lenders and sources that best meet your needs.
If you found this article helpful, please share it on your timeline and with someone you care about. Also, visit our blog to read similar helpful articles on finance, real estate, and getting mortgages.