P2P Lending: Is a Peer-to-Peer Loan Right for Your Business? P2P (short for peer-to-peer) lending refers to a model that connects investors with borrowers – both individuals and businesses – via an online marketplace. P2P lending is also commonly known as marketplace lending or “crowdlending.” It works by using technology to match borrowers and investors directly, eliminating the need for traditional creditors such as banks or other financial institutions to act as facilitators.Without the overhead costs associated with a middleman, P2P service providers are able to pass the savings on to end users (borrowers and investors). For borrowers, peer-to-peer lending boasts many of the same benefits offered by online lending platforms: fast, flexible access to business capital at competitive rates. Meanwhile, the P2P lending platform gains revenue from charging service fees on each loan. Understanding P2P Lending in Canada P2P lenders have existed for some time in the US (some states only) and abroad. Prominent examples in the US include Lending Club and Prosper, both of which launched in 2006 and paved the way for others. In Canada it has taken much longer for the P2P lending industry to take off. Until last year, peer-to-peer lending was not permitted by Canadian securities regulators. Following urging from the financial technology community calling for governments and regulators to support Canada’s budding P2P space (such as this open letter from the National Crowd Funding Association of Canada), the Ontario Securities Commission unveiled OSC LaunchPad, a program that works with Canada’s fintech industry to modernize regulation. One prime example of companies collaborating with regulators is Vault Circle Inc., an affiliate of Lendified. Original Source... Contact Us: 330 Bay Street, Suite 306 Toronto, Ontario Zip Code: M5H 2S8 Business Phone: +1 647 381 9218 Business E-mail: [email protected]
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Do you need equipment for your business? Whether you need new equipment to take advantage of an opportunity or to replace broken or obsolete equipment, it is important to understand the options available today.
For years, equipment leasing has been the go-to option for business owners who want to avoid the large upfront cost of purchasing equipment. However, online loans have quickly become a popular choice for those who want the benefits of owning equipment without the initial cost. This new form of financing allows business owners to get funding for any equipment they need without the collateral, lengthy application, and delays associated with securing a bank loan. Below is an overview of the advantages of each option so you can make the right decision for your business. Equipment Leasing vs Online Equipment Loans - What is the Difference? An equipment lease is basically a rental agreement between a lessor and a business in which the lessor lends the equipment in exchange for regular payments. Equipment leases can be obtained directly from an equipment manufacturer or independent equipment leasing companies. Original Source... Contact Us: Lendified 330 Bay Street, Suite 306 Toronto, Ontario Zip Code: M5H 2S8 Business Phone: +1 647 381 9218 Business E-mail: [email protected] Your small business credit score is important. Credit bureaus begin collecting information about your business from day one, using this data to generate reports that impact your ability to get financing, such as a small business loan. Here are some ways to establish and improve your business credit score. Your Business Profile - Get Your Ducks in a Row If you haven’t already, register or incorporate to get your business in the books officially. As part of this process, you will also obtain your Canada Revenue Agency identification number - this is essentially the SIN number for your business and ensures your business is identifiable as a separate entity. You can then open chequing and savings accounts in your business name, and use your business profile to apply for loans online or in person down the road. You will also want to ensure your dedicated business name, address, phone number and other key details are all listed consistently across all of your accounts, keeping in mind that any inconsistencies could signal red flags for creditors. Finally, you’ll want to contact the credit bureaus to ensure the information they have on file for your small business is accurate. Improve your Personal Credit Although you have established your business as a separate entity, your small business credit and your personal credit are still linked - this is especially true during the early years of your business. While you are establishing your small business credit, lenders will look closely at your personal credit history to get a bigger picture of your financial standing. This means that any steps you take to improve your personal credit (paying bills on time, avoiding predatory loans, etc.) will also improve your small business credit score as well. Separate your Personal and Business Finances This may seem like a no-brainer, but it’s quite common for small business owners to occasionally intermingle personal and small business finances. Many business owners use personal loans and credit to finance business expenditures or weather cash flow crunches. However, as your business matures and you set your sights on raising your small business credit score, you’ll want to start untangling your personal finances from your business completely and seek out credit solutions tailored specifically to your business. Original Source Contact Us: 330 Bay Street, Suite 306 Toronto, Ontario Zip Code: M5H 2S8 Business Phone: +1 647 381 9218 Business E-mail: [email protected] Do you think a business loan could help your company grow? Help your small business grow by creating an excellent case for growth financing. Whether you're looking at growth financing or seed financing, securing a loan can be one of the most stressful parts of starting and growing a business. As you work on your business planning, you need to think about how you'll launch financing for your business. To develop financial resources for business, you need to create a compelling case so lenders will help you with your business loans. How can you prepare to ask a lender to help you grow your small business? LOOK IN THE RIGHT PLACE FOR BUSINESS LOANS As you look for loans for your business, make sure that you begin in the right place. While credit cards can help you pay your regular phone bill, they're too high interest for a long term business loan. Investors look tempting, but you need to decide whether you want someone to own a part of your company or whether you'd prefer to take the risk of bringing on debt. When you're seeking a business loan, know that many larger banks cannot provide a new business with access to loans, since you have no strong credit history yet. Instead, look for lenders that are friendly to small businesses, such as Lendified. Small business lenders understand the needs and challenges of your business. Original Source... Contact Us: 330 Bay Street, Suite 306 Toronto, Ontario Zip Code: M5H 2S8 Business Phone: +1 647 381 9218 Business E-mail: [email protected] In today's internet-savvy world, applying for a small business loan has transitioned from a complicated in-person process to an easy online application. Not all online lenders are equal though. Here are eight questions to ask when considering applying for a loan over the internet.
330 Bay Street, Suite 306 Toronto, Ontario Zip Code: M5H 2S8 Business Phone: +1 647 381 9218 Business E-mail: [email protected] Are you a retailer in Canada looking to take advantage of an opportunity to grow your business or simply bridge the gaps between your cash flows? A business loan from Lendified may be the ideal option for you. Business Loans for Retail Stores The retail industry is an exciting environment, with its own set of rewards and challenges. Seasonal shifts, inventory needs, unexpected repairs, and the hiring of new staff can squeeze your working capital. Many Canadian retailers approach the banks to help, only to be frustrated by the strict requirements, loads of paperwork, and the months it can take to get funding. At Lendified, we understand that sometimes retailers need cash quickly, whether to fulfill a big order or get a bulk discount. Click Here to know more... Contact Us: 330 Bay Street, Suite 306 Toronto, Ontario Zip Code: M5H 2S8 Business Phone: +1 647 381 9218 Business E-mail: [email protected] At Lendified, we are often asked what our loans can be used for. This is understandable since some forms of small business financing in Canada come with restrictions. However, we allow you to put your money toward anything you need to grow your business. Here are 5 examples of ways you could use your financing: Physically Expanding Your Business If your inventory has surpassed the amount of space available for storage or your employees are getting creative to work comfortably, then expanding the physical space of your business could be a good use of your business loan. Just make sure that the investment leads to increased productivity, profits, or both. Purchasing Equipment If new equipment is needed to extend your product or service line or increase the efficiency and production of what you currently offer, then a business loan can help you cover the up-front cost and meet your existing obligations. Click Here to know more... Contact Us: 330 Bay Street, Suite 306 Toronto, Ontario Zip Code: M5H 2S8 Business Phone: +1 647 381 9218 Business E-mail: [email protected] A merchant cash advance is a lump-sum amount given to a business in exchange for a daily percentage of credit card and/or debit card sales. It is common for merchant cash advance companies to work with your payment processor to withhold a percentage of your sales.
What are the differences between a Merchant Cash Advance and Small Business Loan? Historically, merchant cash advances have had higher approval rates, less paperwork, and faster funding. This holds true when comparing them to traditional business loans; however, online business loans (such as those offered by Lendified) serve as a fast and easy option with high approval rates. Today, the two key differences between a merchant cash advance and small business loan are the payments and interest rate. With a merchant cash advance your payment is automatically subtracted from your daily credit/debit card sales until the advance is repaid. Two common ways this is done are: Split withholding: A credit card processing company will split your credit/debit card sales between you and the merchant cash advance company. Click Here for more details Contact Us: 330 Bay Street, Suite 306 Toronto, Ontario Zip Code: M5H 2S8 Business Phone: +1 647 381 9218 Business E-mail: [email protected] A working capital loan is a loan that finances the daily expenses of a business. It is designed to help maintain the cash flow needed to cover things such as wages, inventory, and marketing. Working capital loans can be a great option for small businesses; however, it has become increasingly difficult to secure this type of financing from a traditional lender. Many will ask you to provide substantial collateral, such as your home.
Today, there are working capital solutions for all kinds of businesses in Canada; however, you must make sure the type and timing of the financing meets your needs. What are the types of working capital loans? The most common types include: Credit Line: These allow you to draw funds as you need them and only pay interest on the outstanding balance. Credit lines are often are the cheapest option but can be difficult to qualify for. Short-Term Loans: These offer a fixed interest rate and payment period. There are now short-term loans delivered online, such as those offered by Lendified, that offer better rates than other alternative financing options and do not require you to put up collateral. Click here for more details.. Contact Us: 330 Bay Street, Suite 306 Toronto, Ontario Zip Code: M5H 2S8 Business Phone: +1 647 381 9218 Business E-mail: [email protected] The presence of Canadian women in business is growing. From the early 1990s to 2010, the percentage of female entrepreneurs rose from 27 percent to 33 percent, and in 2012, 35.6 percent of all self-employed people in Canada were women. Reflecting the ever-growing presence of women in business and entrepreneurship, several grant and loan programs geared towards women have emerged across Canada. These business loan programs provide women with the capital they need to begin and grow their ventures. The Rise of Female-Focused Investors A lack of investment in female entrepreneurs is often cited as one of the most important barriers to overcome when addressing the business world's gender gap. Despite the recent female-generated growth in the business world, businesswomen reportedly only receive 4% of the venture capital provided to new businesses. In Canada, female run investment groups aim to address this problem. In August 2015, the Female Funders organization launched by Canadian entrepreneur Katherine Hague with a goal of getting 1,000 female investors to back their first ventures by the end of the year. Her experiences as a successful entrepreneur and angel investor inspired her to create a platform where savvy, experienced female venture capitalists could come together to create a space that supported female progress and funding in businesses. Click Here to know more... Contact Us: Lendified 330 Bay Street, Suite 306 Toronto, Ontario Zip Code: M5H 2S8 Business Phone: +1 647 381 9218 Business E-mail: [email protected] |
AuthorLendified is Canada's premier online lender for small businesses and offers a customizable platform available to financial institutions throughout the world. |