Canada has a new small business alternative lending service, according to Tuesday (Nov. 24) reports. Accord Financial Corp. rolled out its AccordAccess online lending program for SMEs in Canada this week, a tool that can link companies to up to $75,000 in working capital.
In a statement announcing the rollout, Accord President Tom Henderson cited small businesses’ continuing struggling to access traditional financing from banks.
“Small businesses face a tough time borrowing from Canada’s banks and credit unions, with credit hurdles and lengthy timelines screening out even prime quality companies,” he said, adding that Accord will look to fill this SME financing gap with nearly four decades of experience in other markets.
[bctt tweet=””Small businesses face a tough time borrowing from Canada’s banks and credit unions.””]
According to reports, Accord can provide SMEs with working capital within 24 hours, offering up to 18-month repayment cycles. General Manager James Jang added that the implementation of technology can make for a more streamlined application process for SMEs. He noted, however, that the human relationship in small business lending is key, too.
Jang pointed to other local startups in the small business alternative lending space but argued that Accord not only provides SMEs with robust financing options but with a suite of other financial management services.
Canada has seen a slew of activity in the small business lending market in recent moths, both from local startups and from non-Canadian companies launching operations in the country. Local firm Crown Capital launched SME financing services earlier this year, while foreign companies like OnDeck have also eyed the nation for new business.
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