How to apply for a loan?
There are different requirements for the lenders (investors) and the borrowers, except that both must be Canadian.
The borrower must meet the following criteria:
Must have been in the market for at least one year;
An annual income of at least $100,000;
A personal credit score of at least 640.
The lender can be any Canadian, but the annual income must be over $75,000 per person.
Lending Loop verifies the information provided, and once the qualification is confirmed, the borrower can receive a customized financing offer, including the interest rate, within 24 hours.
The funding can be done within 30 days, but it usually takes a few days at most, if not 24 hours.
After receiving the loan, the borrower should take good care of the loan and make timely monthly payments to the lender, who will forward the money to the individual investors who participate in this particular project (the Lending Loop fee is deducted).
Application details
The application includes:
the name of the company;
the first and last name of the representative who would sign the agreement;
the amount requested;
the type of company;
annual revenue;
contact information;
other information will be verified if the company successfully passes the initial verification stage.
After that, bank statements are requested to verify cash flow and articles of incorporation, and the lender communicates what further documentation is required to complete the review and provide a customized financing offer within 24 hours.
The application process begins with setting up an account and checking eligibility with a simple calculator. Then, suppose the borrower meets the essential criteria for Marketplace funding. In that case, the system allows them to proceed and submit an application with more detailed information about the business and contact information.
Confirmation documents are also requested to verify revenue (it should be at least $100,000 per year), and the articles of incorporation help to see that the company has existed in the market for at least one year.
Later, internal algorithms determine the customer grade and assign it to the loan project. This score would help investors understand how to mitigate their risks (if investors use the automatic loan option, this is also based on their risk preferences).
Approval and personal offer take 24 hours, and funding can take a maximum of 30 days while the note is listed, but usually, it takes 1 to a few days to get the financing.
