Your business has been operating for 1 year or longer
Has greater than 100,000 in annual revenue
Is registered as a Corporation or Partnership
Estimated returns reflect various assumptions, which assumptions may or may not occur. Certain key assumptions are described below. No representations or warranties are made as to the achievability of the estimated returns and actual performance may be materially different from estimated returns. Estimated returns are subject to change without notice. The information described below is for information purposes only and is not intended as an offer to sell securities issued by Loop Funding Inc.
Loop Funding Inc. and its affiliates expressly disclaim any and all liability for any representations and warranties, expressed or implied, contained in, or omissions from, this document.
Investors should read the offering memorandum for securities offered by Loop Funding Inc., especially the risk factors relating to the securities offered, before making an investment decision. All purchases of the securities are made pursuant to available prospectus exemptions.
From time to time, we provide projected net returns on the Website. The projected net returns are a portfolio weighted estimate of the annual return. To calculate the net return, we use the projected gross yield, the projected loss rate, the projected slope of the default curve and the servicing fee for the Borrower Loans made. The average return is compounded monthly and shown before tax.
To calculate a projected annualized net return (estimated net return), we multiply the estimated gross interest rate (net of servicing fees) and estimated lifetime loss rate for each risk band by the estimated portfolio weights for the Auto-Lend plan to determine a weighted average interest rate and a weighted average lifetime loss rate for the modelled pool of loans. We then take the weighted average interest rates and weighted average lifetime loss rate for the modelled pool of loans and extrapolate them over a 3-year portfolio projection with continued monthly re-investment of principal and interest to arrive at a final cumulative net return estimate. The final cumulative net return estimate is then rooted by 3 (^1/3) in order to create the projected annualized net return.
The following are the estimated portfolio weights that are used in the current estimate:
The following are the estimated interest rates and loss rates that are used in the current estimate:
Limitations to these estimates
These returns are an estimate of the return after fees and bad debts for recently accepted loans on the marketplace. We use these calculations as we believe they are currently the most useful and accurate way to assess future investment performance because it takes into account both our fees and any future bad debts. However, as with many calculations it has limitations, which include:
We believe in a more open and transparent financial services ecosystem where the ability to lend to businesses is not restricted to only banks and large financial institutions. That’s why we built a platform to allow Canadian individuals to invest alongside corporations, institutions and banks. Lending Loop's goal is to connect established Canadian businesses looking for financing with people and corporations looking to invest.
As an investor, you can access investment opportunities that allow you to fund Canadian businesses giving you the ability to potentially earn more attractive, fixed-income returns that pay you back on a monthly basis, while diversifying your portfolio and best of all, supporting Canadian businesses.
Investors can add funds to their Lending Loop account and then access opportunities to fund small businesses. Investing provides access to a portfolio of hundreds of business that use this capital to grow their businesses.
We build relationships with businesses and approve only creditworthy applicants. Loop also manages the customer relationship, including servicing the loans and distributing payments to investors.
Businesses use the funds to continue growing and make fixed monthly payments of principal and interest back to their Lending Loop investors.
Automate your investment strategy by investing in a private credit portfolio.
Small businesses as an asset class has historically been inaccessible to everyday Canadians. With Lending Loop, for the first time ever, all Canadians can access the benefits of a new and exciting investment that is uncorrelated to things like stocks and real estate.
By removing the overhead costs and complexity of the big banks, we’re able to pass those savings – and more attractive returns – to you. Lending Loop makes it easy for you and small businesses to prosper.
Small-Medium sized businesses across Canada employ over 90% of working Canadians. Lending to these businesses isn’t just an opportunity to earn a good return, it also helps them with the financing they need to grow their business, which in turn helps the whole economy.
Not sure how you can start investing in businesses? Let us do the work for you with pre-built credit portfolios. Our credit evaluation team reviews the details of every business that wants to be listed on our platform, to make sure it’s a good fit for you.