One of the key differences in our loan versus a traditional bank loan is that approval is based on the sales history of the business rather than personal credit history of the business owner. If the business has been open for at least 12 months and has sales of $10,000 per month they probably qualify. They can apply on-line or by phone and decisions are typically made in 2 business days.
Repayment of the loan is made on a daily basis where small daily “micropayments” are automatically debited from the bank – making it much easier on cash flow compared to a lump sum payment at the end of the month. Clients that don’t havedaily sales (B2B for example) can opt for weekly payments.
Loans from 6 months to 12 months are available starting at 13.9%.
Here’s an example of a 6 month loan.
- Loan Amount $10,000
- Cost $1,397
- Daily payment $63.32
The non-bank or “alternative” lending space has grown exponentially in Canada over the past 5 years. Although Canadian stats aren’t tracked, non-bank lending in the US is now considered mainstream and is used by 18% of small businesses. There are multiple public companies offering “non-bank” business loans, Google has invested in this space, Pay Pal offers a loan product, Staples offers loans and the list goes on.
The alternative lending industry is a few years behind in Canada but we like to think Company Capital is leading the way in non-bank lending north of the border. If dealing with a small, flexible, Canadian company sounds better than dealing with Wall St. then give us a call or check out our website.