How Peer-to-Peer Lending Works

What is Peer-To-Peer Lending?

Peer-To-Peer lending is the process of lending money through a platform like Lending Loop, that connects investors with borrowers seeking capital.


The Process

Lending Loop connects lenders with small businesses that are seeking capital. We screen loan application and assign a risk rating to the loan requests of creditworthy borrowers. Lenders can purchase securities in the form of notes that correspond to fractions of these loans. Lenders are able to select loans based on a wide array of criteria including risk rating. By purchasing notes corresponding to over 70 different borrowers, you may be able to diversify your portfolio of notes. As borrowers make payments on their loans, we credit your Lending Loop account with funds that can be withdrawn or further re-deployed.

Businesses gain access to the capital they need at fair interest rates, while lenders earn a return on their investment. Lending Loop provides a secure platform for these transactions to take place. We provide standard-form agreements, screen and review borrowers' applications and undertake collections in the event of default.

Icons landing page lending loop 04

Lending Loop screens and assigns a risk rating, ranging from A+ through E, to creditworthy borrowers who apply for loans before listing them on the marketplace.

Icons landing page lending loop 12

Lenders review loan listings and select loans in which to invest.

Icons landing page lending loop 13

Borrowers make fixed monthly payments and investors earn interest on their investment as the principal is repaid.

How do Canadian Businesses Benefit from Peer-To-Peer Lending?

EASY ACCESS TO FINANCING

Applying is easy and it typically takes less than 5 minutes.

View the benefits >

LOW RATES. NO HIDDEN FEES

Rates that suit your business with no penalties or hidden fees.

Learn more >

FLEXIBLE TERMS

Lending Loop’s Term Loans are flexible,
giving businesses the ability to repay early without penalties or fees.

View our flexible terms >

Grow Your Business Today

From growth and expansion to refinancing and inventory purchases, Lending Loop has financing that works for you.

Get Started

Applying is free!