Canadian Internet company CommunityLend Inc., today announces that its unique peer-to-peer lending system is now available to eligible borrowers and lenders in the province of British Columbia.
“Given the especially high usage of community-oriented financial institutions like credit unions in British Columbia, we are very excited about being able to now offer our unique peer-to-peer lending system to this province.” said CommunityLend’s CEO, Michael Garrity.
CommunityLend is Canada’s only online peer-to-peer lending platform. Peer-to-peer lending is a much-heralded international financial services innovation which cuts out the traditional “middlemen” in lending transactions, such as banks and credit card companies, by facilitating the direct matching of borrowers to investors through online loan auctions. Peer-to-peer lending has been called “game-changing” by financial industry analyst Javelin Research and has also been recognized by the Harvard Business Review in their 2009 List of “Breakout Ideas”.
“By allowing borrowers the ability to connect directly with lenders through a safe and secure online lending system,” Garrity noted, “we expect borrowers to benefit from better rates for their loans through price competition and lenders to benefit from getting direct access to Canada’s consumer credit market as an investment category. It’s a win-win.” “Consumer lending has been one of the major drivers of the profitability of the Canadian banking industry for decades and yet it has been virtually unavailable as a direct investment opportunity for private investors." noted Garrity, "This situation has created an uncompetitive banking industry in Canada with a high cost of borrowing for the average person looking for an unsecured loan. Peer-to-peer lending models like CommunityLend aim to change this situation. By removing the structural obstacles which prevent private investors from investing directly in consumer loans our service can provide the basis for a better deal for both sides.”
According to Garrity, the CommunityLend online peer-to-peer lending system aims to satisfy three essential market needs in Canada:
Helping Canadian borrowers get better rates on loans by creating real competition for their loan requests. Giving Canadian investors (starting with Accredited Investors) the opportunity to directly participate in Canada’s large consumer credit market as an investment category. Providing communities the opportunity to positively influence the lending process for their members by highlighting their collective needs and responsibility.
As of today, the CommunityLend online peer-to-peer lending service is available in the Provinces of British Columbia, Ontario and Quebec at www.communitylend.com. The company intends to add more provinces in the future.
About CommunityLend Inc
CommunityLend Inc. is Canada’s only peer-to-peer lending service, a financial services innovation which allows borrowers to cut out banks and credit card companies and to connect directly with lenders through open online loan auctions. Called “game changing” by financial industry analysts, this new lending model permits direct investment by eligible investors in the personal lending market, previously largely the preserve of financial institutions. CommunityLend Inc. is a wholly owned subsidiary of CommunityLend Holdings Inc., a Canadian corporation based in Toronto, ON. CommunityLend Inc. is registered as a Portfolio Manager and an Exempt Market Dealer in the provinces of British Columbia, Ontario, and Quebec.