Online Lending in Canada: A Look Back
Evolocity Financial Group is celebrating our 10th anniversary this year and we have been doing a lot of reminiscing. The conversations tend to go the same way as we dive into the drastic changes our industry has gone through over the last decade. You might be surprised to hear about how different things were back then – we wanted to share our insider view.
The year was 2008 and Canada was in the midst of its biggest economic crisis since the early 90s. The US housing market had crashed and brought down most of the world with it, we were no exception. Getting financing for your Canadian business was always difficult, but the recession brought things to a new level. Banks made approval conditions stricter and more and more businesses were starting to get declined.
In September of 2008, Evolocity was born. We were one of the first in the country to offer an alternative to the banks with our Merchant Cash Advance program. The program gave small business the opportunity to not only get approved for financing but have a flexible repayment schedule that worked alongside their cash flow.
The World of Business Loans
Flash forward to 2014. The industry had been growing steadily over the past 6 years with new lenders popping up left right and center. The country was getting back on its feet and businesses were feeling the positive effects. It was time to find a new way to help businesses grow – the Small Business Loan was the solution.
Evolocity was the first lender in the country to offer this new type of loan to its clients. Compared to a traditional bank loan, these loans allowed businesses to repay a small amount daily that helped free up cash flow.
Where Are We Today?
The online lending space has continued to grow over 50% year over year – saying the space has boomed would be an understatement. The rest of the world is following a similar trend. The industries in the US, China and the UK are leading the charge and even a few years ahead of us!
We’re excited to see what the next decade has in store for us. We hope you’ll join us for the ride!
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