A new alternative lending service for SMEs is launching in Canada.
LendMart announced Tuesday (Jan. 31) that it is rolling out its small business financing services in the country to help businesses find a loan from somewhere other than a traditional bank.
“Every year, a third of Canadian small businesses apply for a loan and, on average, over 33 hours are spent on each loan application,” said LendMart Cofounder and EVP of Partnerships Lana Tayara in a statement. “This is a waste. We want to let entrepreneurs focus on the core of their business, while leveraging technology to quickly find and apply for the financing they require.”
LendMart is a digital marketplace for SMEs to find financing. The platform provides an online application that the company says can be completed in five minutes or less. After the application is completed, small business borrowers can immediately see some of their financing options.
The company uses its own algorithm to match borrowers to lenders, and businesses can choose a lender with one click. Financing can be provided as quickly as 24 hours, the company noted. The platform will launch with a preliminary focus on small businesses that are at least six months old across a range of industries and plans to expand its base of alternative lenders. The firm noted that it will also introduce educational resources for small business borrowers in the future.
“LendMart is using technology to provide complementary solutions to traditional lending sources, giving small business owners easy access to a larger range of borrowing options,” said Royal Bank of Canada former Associate Vice President Manon Desmarais in another statement. “LendMart is empowering small businesses and enabling them to unlock the growth potential of their unique businesses.”