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Lender
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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.

Lending Loop's application

Finanso.Multilogin™

How to apply

Requirements

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.

FAQ

How long does it take to get approved by Lending Loop?

It takes up to 24 hours to receive a personal offer, and then borrowers decide which option is acceptable to them and how to proceed.

How trustworthy is Lending Loop?

Lending Loop is legally authorized to offer its services in the Canadian market as a peer-to-peer marketplace. To sell loans for financing, the company distributes debt securities (notes) through Loop Securities Inc among its investors. 

Loop Securities is registered as an Exempt Market Dealer with the authorities that regulate the securities market in all provinces and territories where services are provided.

Does Lending Loop verify income?

Yes, Credit Loop verifies income and requires some documentary proof. One of the eligibility criteria is annual income. 

Credit Loop asks borrowers to provide:

  • Annual statements;

  • The two most recent financial statements;

After the initial review, due diligence is performed, which requires the following:

  • Statements of the company's most recent six months;

  • The CRA's most recent notes on the valuation;

  • Articles of Incorporation.

As you can see, just stating some income figures is not sufficient for decision-making.

Does Lending Loop hurt your credit score?

Applying does not affect your credit score.

There is no clear information on how and to which credit bureaus information on failed payments is transmitted. However, it can be assumed that the credit bureaus are informed since a credit score of more than 640 units is required during the initial credit check.

In addition, the information to the credit bureau must be made by a responsible lender to prevent other lenders from risky associations with a borrower who tends to default.

Calculate loan payments in Lending Loop

Lending Loop calculator will allow you to calculate an approximate payment schedule for the loan

Loan amount
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Enter the desired loan amount

CAD
CAD
1000 $
500000 $
Loan term
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Specify the loan term for the calculation

months
days
3
60

What to pay attention to when applying for a loan from Lending 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 Lending 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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All Lending Loop’s reviews by September 2022
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