A new and innovative borrowing solution lets Canadians be smarter about managing debt
TORONTO, April 21, 2015 /CNW/ - Borrowing for Canadians just got smarter. Borrowell, the new marketplace lending platform, offers affordable, fixed-interest loans giving Canadians a smarter way to manage their debt. The online platform accepts applications from Canadians with good credit scores who want better alternatives to high interest rates on credit cards and avoid the inconvenience of bank loans.
According to Equifax, Canadians currently hold over $80 billion in credit card debt with a typical interest rate of 19.9 per cent or higher. Borrowell is designed to let responsible Canadians be smarter about their borrowing, and customizes interest rates based on the borrower's credit profile. The marketplace lending platform offers loans up to $35,000 on three and five-year terms with rates starting from 5.9% APR. Interest rates are fixed, loans are fully paid off at the end of the term and there are no early pre-payment fees.
"We believe Canadians deserve better borrowing options," says Andrew Graham, CEO, Borrowell. "We reward responsible Canadians who have good credit by giving them an affordable alternative to the traditional, expensive and cumbersome options currently available. Our goal is to help Canadians conquer debt by giving them a smarter solution."
How It Works
Borrowell matches people who want to borrow with lenders who want to lend money to responsible Canadians. Its proprietary technology does the matching quickly and securely. Borrowell operates exclusively online, cutting down on cost and complexity to pass the savings on to the borrower.
Growing Popularity of Marketplace Lending
Marketplace lending is disrupting traditional borrowing. In the US and UK, online marketplace lenders have served over one million customers to date. Goldman Sachs estimates online lending could grow to take over $1.7 trillion of an addressable $4 trillion of debt. In the past year, the industry has seen rapid growth and has been named 'Innovation of the Year' by American Banker.
"We're seeing massive growth in marketplace lending around the world," said John Bitove, Canadian businessman and Borrowell investor. "With Toronto-based Borrowell entering the market, Canadians now have an innovative and smarter way to borrow money, allowing them to get a better handle on their debt."
In December 2014, Borrowell received $5.4 million in seed funding and loan capital. Key investors include Equitable Bank and Oakwest Corporation Limited, a private investment company owned and managed by the Beutel family. In addition to John Bitove, notable individual investors include Roger Martin, Dan Debow and Joe Canavan.
To learn more, visit www.borrowell.com.
About Borrowell
Borrowell is an online marketplace lending platform that provides responsible Canadians with better borrowing options. Its affordable, fixed-interest loans are funded by carefully selected institutional investors, allowing the company to offer better rates, better service and a better customer experience. Borrowell's institutional partners include Equitable Bank and Oakwest Corporation. More information is available at: www.borrowell.com
SOURCE Borrowell
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