Lending Loop
Lending Loop is a Toronto-based peer-to-peer lending marketplace that connects Canadian small business borrowers seeking unsecured loans of $1,000–$500,000 with individual investors, operating through Exempt Market Dealer-licensed subsidiaries and generating fee revenue from origination and lender servicing.
- Company typePrivate
- Founded2015
- HeadquartersToronto, Canada
- Headcount11–50
- GTM typeB2B and B2C
- OfferingServices
What Lending Loop does
Lending Loop is a Toronto-based fintech that operates Canada's first peer-to-peer lending marketplace, founded in 2015 and privately held under parent Loop Financial Inc. Through wholly-owned subsidiaries Loop Funding Inc. (which originates loans and issues notes) and Loop Securities Inc. (an Exempt Market Dealer registered in every Canadian province and territory), the platform connects small business borrowers with individual Canadian investors, enabling unsecured term loans of $1,000 to $500,000 with no collateral and no early-repayment penalties. The technology stack includes an online application pipeline, an internal proprietary Loan Grade System for underwriting (using credit agency and application data), an Auto-Lend service that automates investor commitments against selected parameters, and a secure fund-transfer pipeline handled by a regulated financial institution.
The company monetizes through transaction-based fees: origination fees of 2.99–9.99% deducted from borrower principal at disbursement, an annualized 1.5% lender servicing fee deducted from borrower repayments, plus late-payment fees (15% of arrears after a 7-business-day grace period) and NSF fees up to $50. Reported performance metrics include $90M+ lent to Canadian small businesses cumulatively since 2015 and an average 7.8% investor return. Borrower segments center on Canadian SMBs seeking working capital, equipment financing, inventory, or refinancing of high-cost debt, while the lender side targets individual investors seeking fixed-income exposure and portfolio diversification.
Distribution is fully digital and self-serve via lendingloop.ca, supported by content marketing, email, SEO, and earned media. In 2023 the company launched the Loop Banking Platform (no-FX business credit card, free US bank account, FX services) under a separate brand URL (getloop.ca), and in 2024 introduced an ecommerce-specific line of credit, indicating a pivot from pure P2P origination toward broader small business banking infrastructure. The lending business remains Canadian-only with no disclosed international lending, and the ownership structure is founder-led (Cato Pastoll, co-founder & CEO) with no visible external venture capital or private equity sponsorship post-2018.
Lending Loop firmographics
Firmographics- Name
- Lending Loop
- Legal name
- Loop Financial Inc.
- Website
- https://lendingloop.ca
- Company type
- Private
- Founded year
- 2015
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- Lending Loop is a Toronto-based peer-to-peer lending marketplace that connects Canadian small business borrowers seeking unsecured loans of $1,000–$500,000 with individual investors, operating through Exempt Market Dealer-licensed subsidiaries and generating fee revenue from origination and lender servicing.
- Ownership category
- akta.pro rank
Lending Loop industry classification
Industry- Product category
- Peer-to-peer small business lending
- NAICS
- Mortgage and Nonmortgage Loan Brokers (522310), Other Nondepository Credit Intermediation (52229)
- SIC
- Loan Brokers (6163)
- akta.pro primary industry
- P2P Credit Lines / Revolving Marketplace Lending (FSAKAHAK)
- akta.pro secondary industry
- Specialty Finance / Structured Credit (FSANADAE)
Keywords
Where Lending Loop is headquartered
LocationHeadquarters
- HQ city
- Toronto
- HQ country
- Canada
- HQ region
- North America
Offices2 records
Markets served
Lending Loop business model
Business model- GTM type
- B2B and B2C
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure, Others
Revenue model
- Origination Fees (Borrowers): Fees charged to borrowers when loans are successfully funded. Covers cost of underwriting and processing. Deducted from principal before disbursement to deposit account.
- Lender's Fee: Annualized rate of 1.5% of outstanding principal under a Note, deducted from each repayment received from borrowers
- Late Payment Fees: Fees charged to borrowers for missed payments not rectified within 7 business days, equal to 15% of outstanding loan payments in arrears
- Non-Sufficient Funds Fees: Fees charged when loan payment withdrawal is denied or refused by borrower's financial institution, up to $50.00
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Transaction based/ take rate | Monthly | SL Loans: $1,000 to $40,000 for businesses operating 2+ years with $30,000+ annual revenue |
| Transaction based/ take rate | Monthly | LL Loans: $5,000 to $500,000 for businesses operating 1+ year with $100,000+ annual revenue |
| Transaction based/ take rate | Monthly | Investor (Lender) Fee |
Go-to-market motion2 records
Distribution channels2 records
Marketing channels6 records
Lending Loop product offering
Product offeringCore offering
Lending Loop operates a regulated peer-to-peer lending marketplace where Canadian small businesses can apply for unsecured term loans of $1,000 to $500,000 and Canadian individual investors can fund those loans to earn fixed-income returns. The platform underwrites borrowers using an internal Loan Grade system, facilitates note purchases by investors (manually or via automated Auto-Lend), and uses Loop Funding Inc. as the funding entity with Loop Securities Inc. acting as a registered Exempt Market Dealer. Complementary products include the Loop business banking platform (no-fx credit card, US bank account, FX) and an ecommerce-specific line of credit.
Product overview
Lending Loop operates as a peer-to-peer lending marketplace that connects Canadian small businesses seeking financing with individual investors. The core offering consists of the Lending Loop Platform enabling unsecured small business loans ranging from $1,000 to $500,000 with no collateral required. Borrowers can access loans through a quick application process with approval decisions typically within 2 business days. The platform also provides complementary tools including a Business Loan Calculator and Rate Comparison Calculator to help borrowers understand financing terms. For investors, Lending Loop offers fixed-income returns through the Auto-Lend automated investment feature. Additionally, Lending Loop has expanded into the broader banking space with its Loop Banking Platform (a separate sub-brand offering a no-fx business credit card, US bank account access, and FX services) and recently launched an ecommerce-specific line of credit product.
Differentiator
Problem solved
Functional benefit
Brands
- Loop: A banking platform designed for Canadian businesses offering no-fx business credit cards, free US bank accounts, market-leading FX rates, and other banking services.
Products and services
- Lending Loop Platform (P2P Lending Marketplace) Regulated peer-to-peer marketplace where Canadian small businesses apply for unsecured term loans and Canadian individual investors fund those loans in exchange for fixed-income returns, with all loan funding and lending intermediated by Loop Funding Inc. and securities activities handled by Loop Securities Inc.
- Small Business Loans (SL Loans & LL Loans) Unsecured term loans for Canadian small businesses, available in two tiers: SL Loans of $1,000 to $40,000 for businesses operating 2+ years with $30,000+ annual revenue, and LL Loans of $5,000 to $500,000 for businesses operating 1+ year with $100,000+ annual revenue. Origination fees range from 2.99% to 9.99%, and interest rates vary by loan grade from approximately 5.90% to 26.50% APR.
- Loop Banking Platform Free Canadian business banking platform offering a no-fx business credit card, free US bank account, and market-leading FX rates to Canadian businesses.
- Ecommerce Line of Credit Dedicated line of credit built for ecommerce stores to improve cashflow position and maximize revenue growth, distributed through the Loop (getloop.ca) platform.
Quantifiable outcome
- $90+ million lent to Canadian small businesses
- +3 more outcomes
Companies that use Lending Loop
Customer profileNamed customers4 records
Segments3 records
Ideal customer profiles3 records
Lending Loop technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature4 records
Lending Loop partnerships and signals
Strategic signalScale indicators6 records
Recent moves6 records
Expansion highlights5 records
Lending Loop competitors and assessment
Company assessmentDirect peers
- BlueVine: BlueVine offers SMB banking, lines of credit, and invoice factoring — a directly comparable product set to Lending Loop's Loop Banking Platform plus ecommerce line of credit. Both target the same underserved SMB cash-flow management use cases with digital-first delivery.
- LendingClub: LendingClub is the largest US P2P lending marketplace, originally focused on consumer loans and now expanding into SMB banking and loan products. It shares Lending Loop's core marketplace model connecting borrowers with retail investors, fee-based revenue model, and regulated securities dealer structure.
- iCapital Network: iCapital operates a marketplace platform connecting individual investors and advisors with private credit and structured investments. While focused on alternative investments broadly, it parallels Lending Loop's model of intermediating retail investor capital into private credit instruments like SMB loans.
- Funding Circle: Funding Circle operates a global P2P/SMB lending marketplace connecting small businesses with institutional and individual lenders, offering term loans similar to Lending Loop's core product. It is the most direct international comparator in both business model (online marketplace origination) and target customer (underserved SMBs seeking non-bank financing).
- OnDeck Capital: OnDeck provides online term loans and lines of credit to small businesses, using technology-driven underwriting to serve borrowers underserved by banks. While OnDeck funds loans on balance sheet rather than via a true P2P marketplace, it competes directly for the same Canadian SMB borrower segment Lending Loop targets.
- Propel Holdings: Propel Holdings is a TSX-listed Canadian fintech offering short-term SMB and consumer credit through brands like MoneyKey and CreditFresh. As a domestic Canadian alternative lender, it shares Lending Loop's SMB and consumer credit focus and provides a public-market benchmark for Canadian lending fintech valuations.
- Shopify Capital: Shopify Capital provides merchant cash advances and lines of credit to Shopify-based ecommerce businesses — directly competing with Lending Loop's new ecommerce line of credit product. It represents a powerful platform-embedded competitor with deep distribution into the exact SMB segment Lending Loop is targeting.
Regional players
- Borrowell: Borrowell is a leading Canadian fintech offering free credit scores, personal loans, and other financial products. While focused on consumer credit rather than SMB lending, it competes in the same Canadian fintech market for customer acquisition and brand awareness, and represents potential partnership or competitive overlap.
Broad incumbents
- Upstart: Upstart is an AI-driven lending marketplace originating personal loans, auto loans, and small business loans through bank partners. While primarily consumer-focused, Upstart competes for the broader online SMB and consumer credit market and shares Lending Loop's marketplace-based origination and tech-enabled underwriting approach.
- Kabbage (American Express): Kabbage, acquired by American Express, provides SMB lines of credit and working capital products via automated underwriting. It is the closest large-scale US analogue to Lending Loop's ecommerce line of credit and competes for the same digital-first SMB cash-flow lending segment.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks1 record
Key highlights1 record
Customer concentration
Lending Loop social profiles
Digital presenceLending Loop compliance and trust
Trust signalCompliance2 records
Lending Loop financial estimates
Financial estimateRevenue estimate
Valuation estimate
Lending Loop leadership team
Management profileNumber of profiles
Profiles1 record
Lending Loop subsidiaries and ownership
Company hierarchySubsidiaries2 records
Lending Loop funding detail
Funding detailFunding overview
Funding rounds5 records
Investors5 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Lending Loop M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Lending Loop
What does Lending Loop do?
Lending Loop operates a regulated peer-to-peer lending marketplace where Canadian small businesses can apply for unsecured term loans of $1,000 to $500,000 and Canadian individual investors can fund those loans to earn fixed-income returns. The platform underwrites borrowers using an internal Loan Grade system, facilitates note purchases by investors (manually or via automated Auto-Lend), and uses Loop Funding Inc. as the funding entity with Loop Securities Inc. acting as a registered Exempt Market Dealer. Complementary products include the Loop business banking platform (no-fx credit card, US bank account, FX) and an ecommerce-specific line of credit.
Is Lending Loop a public or private company?
Lending Loop is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was Lending Loop founded?
Lending Loop was founded in 2015. It employs 11 to 50 people.
Where is Lending Loop based?
Lending Loop is headquartered in Toronto, Canada, in the North America region.
How does Lending Loop make money?
Four revenue lines are on record. Origination Fees (Borrowers) is the primary driver. The others are lender's Fee, late Payment Fees and non-Sufficient Funds Fees.
Who are Lending Loop's main competitors?
Direct peers on record are BlueVine, LendingClub, iCapital Network, Funding Circle, OnDeck Capital, Propel Holdings and Shopify Capital. Borrowell is listed as a regional player. Broad incumbents are Upstart and Kabbage (American Express).
Does Lending Loop have an API?
No public API is recorded for Lending Loop.
What industry is Lending Loop in?
Lending Loop's product category is Peer-to-peer small business lending. Its primary akta.pro industry code is FSAKAHAK, P2P Credit Lines / Revolving Marketplace Lending, with a secondary code of FSANADAE, Specialty Finance / Structured Credit. Its NAICS code is 522310 and its SIC code is 6163.