Hey Everyone. No unboxing today, but we will be taking a look at how Lending Loop works. For those not in the know, their website sums it up nicely as:
“Lending Loop is a peer-to-peer lender. That means we connect businesses seeking capital with lenders directly through our online platform.”
Before we get going allow me to crack open a stock joke first to get you in the mood to talk about notes as investments 😉
Q: How do you make a million dollars in the stock market?
A: Start with two! 😂
How does it work?
To clarify, we will be looking at lending Loop form the investors’ perspective and not the borrower.
Have you ever had a mortgage or financed a car?
Well, Lending Loop kind of works like that. Just in this case you are the “bank” receiving the monthly payments that consist of partial repayment of the principal you invested plus the interest. Pretty simple concept right!
- Investment diversification
- Most likely safer than that hot penny stock pick you were recommended by your uncle’s ex-wife’s adopted daughter’s boyfriend.
- Feel good about helping smaller Canadian companies eh! 🍁
- Invest in increments of $25 and there are no commissions. Note that Lending Loop takes its cut by clawing 1.5% of the interest due to you.
- Like everything in life, there is no guarantee and the companies you invest in can go belly up. Albeit, with some diversification and smart investment choices you can minimize the potential loss.
- You’re not Canadian? Too bad, this is only for Canadian residents… Oh and that means you have been excluded Quebec… Says so in there fine print for some mumble jumble legal jibberish reason. However, companies from Quebec are listed, it’s just from a lender’s perspective.
- Not applicable to RSP, TFSA, RESP…etc… No way around it, you’re getting a get a T5 slip 🤷
Time to take a little dive into it shall we...
Note: I am photo editing the numbers and company-specific details of screenshots so that I do not release any company-specific details to non-members as defined in their terms and conditions of being an investor.
Once logged in, your dashboard will be displayed:
A visual representation of your account’s growth:
There are many other screens for you to probe into as well and adjust to your preferences as follows:
The next major screen (where the magic happens) is called the Marketplace. This is where we will find the available notes to invest in:
When you see one that you want to find out more details on, you simply click on it and are presented with more as follows:
There are a handful of different tabs within the details of the notes you can check out to find out if this is right for you. One of my favorite pieces is the Q&A section which allows you to follow up won any details you are curious about with the company. Of course, the most important part will be looking at the companies financials. You will be presented with financials as follows:
Some advice to people looking to invest in notes: You don’t need to care about fancy gizmos and do dadas, you just want to make sure the company you invest in stays afloat and can pay its bills. No need to hunt for 10 baggers here.
OK, what I have explained above is just my high-level interpretation of Lending Loop for you – there are plenty more in-depth details you can look into on their website or feel free to reach out to me as well. If you do end up deciding that Lending Loop is for you please use my code and we will both get $25.
Disclaimer: I am not a certified comedian – please consult a comedian before having a laugh – same applies to any financial advice you might take away from my posts. If you can donate that would mean a lot to me and help to fuel me to keep going. Also, feel free to give me any feedback. Good, bad, or ugly. Thanks.