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Lender
Rating by Finanso®
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Loop

Finanso.Multilogin™

About lender

Loop’s mission is to change banking to Canadian businesses. It has been developing financial products to support the SMB ecosystem for the better part of a decade. Loop claims to understand that small businesses like e-commerce face challenges and needs often not being resolved or met by big banks. Its revolutionary services are based on three pillars: multi-currency support, an extended repayment grace period, and credit limits based on sales, not personal assets. The company’s primary service is a multi-currency corporate card that supports CAD, EUR, USD, and GBP. Financing is provided as lines of credit, invoice financing, and purchase order financing.

Loop has already lent more than $100 million to different businesses across Canada.

Suppose customers are running small e-Commerce businesses and are interested in services provided by Loop. In that case, they can simply apply via an online pre-approval form located on the company’s website, which would take less than 10 minutes.

Features

Loop is a company that advocates for banking reform whose final aim would be to facilitate cross-border banking and develop low-cost funding methods for small businesses. Thus, Loop provides small companies - usually e-commerce - with financial products. In addition, it helps business people to manage their international banking needs, including corporate cards, payments, FX, capital, and more from the company’s platform.

The main product elaborated by Loop is a multi-currency corporate card that will be helpful for customers who need to make purchases in another currency. Available currencies are USD, CAD, GBP, and EUR, and what’s more, there is no need to pay any FX fees as Loop automatically pays in the required currency, so customers do not need to convert anything. Also, the company doesn’t limit the usage of cards, so customers can use them as their businesses require.

Also, Loop lets customers open multi-currency accounts with the help of which they can receive payouts from marketplaces such as Amazon, Shopify, PayPal, and others. There are no monthly fees, minimum deposits, or limits on the amount of funds customers can receive in their multi-currency accounts. Moreover, Loop helps customers with international payments that can be done with the help of their company.

What’s more, Loop offers loans to their customers. There are inventory-secured lines of credit, purchase order financing, and invoice financing. These loans are based on the customers’ sales, and interest rates depend on them. Loop only charges interest on the outstanding balance rather than a % of the total amount borrowed. This means that as customers pay off their balance, the interest they pay also decreases. Interest rates range from 0.8% - 2% per month, which is relatively low.

Pros and cons

Pros

  • The company offers several financial products;

  • The company's rates depend on the company’s sales;

  • Loop helps small businesses grow and develop;

  • Loop’s multi-currency card helps customers to make purchases abroad and avoid FX fees;

  • The company doesn’t charge any monthly fees for their multi-currency accounts;

  • There are no minimum deposits or limits on amounts of funds received into their accounts;

  • Up to 55 days of interest-free spending with a Loop card;

  • Their interest rates are relatively low.

Cons

  • The company offers its services only to business people and entrepreneurs;

  • Currently, the company's multi-currency accounts are only available for USD. Canadian, UK, and European accounts are coming in Q3 2022.;

  • Customers are not allowed to make transactions deriving from cryptocurrencies;

  • Transactions may take as long as one day;

  • Loop has a fixed monthly access fee between $79 and $499.

Loop has significant advantages. The company's services can benefit business people, especially in the eCommerce industry. For example, loop lets its customers make purchases abroad with their multi-currency corporate card without FX fees being charged.

On the other hand, some disadvantages could change customers’ opinions. The company only deals with businesses, and now their multi-currency accounts are only available for USD. Also, they have fixed monthly access fees that are pretty high.

Loan conditions

The company offers a rapid online application. Customers need to find a form on the company’s website and fill it out, which can be done within 10 minutes. After that, they will be connected with the company’s operators to receive a response and the financial product they need.

The company's requirements are based on the type of services customers choose. Clients must be older than 18 years and have an active business. Also, they will need to provide some basic information about the business and have each of the directors/owners of the business provide consent. If customers apply for PO Financing or Invoice Financing, the company will need a copy of the purchase orders, invoices, and the master purchase agreement with their customer.

Interest rates range from 0.8% - 2% per month, but Loop only charges interest on the outstanding balance rather than a % of the total amount borrowed. It means that when customers repay their loans, interest decreases too. Borrowable amounts are:

  • Up to CAD 1 million for the inventory secured line of credit;

  • Up to 70% of the purchase order for PO Financing;

  • Up to 95% of the invoice for Invoice financing.

Methods of loan funding

The funding method depends on the financial product clients choose. However, the borrowed amount can be transferred to a customer’s bank account.

FAQ

What is Loop?

Loop develops financial products to support small businesses: multi-currency support, multi-currency accounts, and funds to borrow. The company’s primary service is a multi-currency corporate card that supports CAD, EUR, USD, and GBP. In addition, financing is provided as lines of credit, invoice financing, and purchase order financing.

Who owns Loop?

Loop’s team, led by Cato Pastoll and Brandon Vlaar, has been developing financial products for Canadian businesses for a decade.

How do you qualify for Loop?

To qualify for one of the financial products Loop provides, customers must be older than 18 years and have an active business. Also, they will need to provide some basic information about the business and have each of the directors/owners of the business provide consent. If customers apply for PO Financing or Invoice Financing, the company will need a copy of the purchase orders and invoices and the master purchase agreement with their customer. 

How much can you borrow from Loop?

  • Up to CAD 1 million for the inventory secured line of credit;

  • Up to 70% of the purchase order for PO Financing;

  • Up to 95% of the invoice for Invoice financing. 

Is it a legitimate company?

Loop is a legitimate company. Its business number on Canada’s Business Registries is 817129778.

Company documents

Privacy Policy

We’re on a mission to help Canadian ecommerce businesses go global.

© Loop

Calculate loan payments at Loop

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What to pay attention to when applying for a loan from Loop

  1. The company must have a license if it runs business in Alberta, British Columbia, Manitoba, Ontario and Quebec.
  2. You can check the availability of the relevant license (copy) at the branch of the lending company.
  3. Membership in a self-regulatory organization (SRO) is an additional guarantee of the reliability of the lending company. This information can also be checked at the company's branch or on its official website.
  4. Availability of lending policies.
  5. The procedure for applying for a loan.
  6. The procedure for concluding the loan agreement and receiving the payment schedule.
  7. Other conditions for granting loans.

We recommend

  1. To check out the interest rates and frequency. 
  2. Check the availability of individual terms in the loan agreement (principal amount, term, date of advance, etc.).
  3. Check whether the loan agreement contains information about the total cost of borrowing.
  4. Take time to think – you can change your mind before agreeing or signing a loan agreement.
  5. Speed of loan processing.
  6. Accessibility – alternative lenders often operate where there are no bank branches.
  7. For the borrower - high interest on the loan.
  8. For an investor, the safety of funds is not guaranteed by the state.

What distinguishes Loop from banks:

  1. Simplicity - loan processing is less formalized than in a bank.
  2. Fast loan processing.
  3. Accessibility.
  4. For the borrower - high interest on the loan.
  5. For an investor, the safety of funds is not guaranteed by the state.
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