Newstart Canada, a 30 year old Ontario based group of companies specializing in credit improvement, today announced a formal partnership with CommunityLend, Canada’s first and only online peer-to-peer lending company. Under the terms of the partnership, CommunityLend will work with Newstart to set up loan requests for Newstart customers who have improved their credit and now qualify for a better borrower rate in the CommunityLend online lending system.
“We are excited to have found a partner who we can work with to help our successful customers graduate into the interest rates they deserve,” noted Dave Baker, President of Newstart Canada. “The best days for us are when our customers have improved their credit enough under our programs that they don’t need us anymore.”
Newstart has provided over 39,000 consumer loans to customers who lack a sufficient credit rating to borrow from a traditional bank. A recent study noted Newstart Canada customers have improved their credit scores an average of 30% in one year, with 33% of these customers reporting a Beacon Score above 657. This is where CommunityLend steps in accepting customers with a 657 (or higher) Beacon.
“Newstart Canada represents for us the ideal type partner for our unique online lending service,” noted Michael Garrity, CEO of CommunityLend. “They have been helping people for over 30 years to get back on the road to financial responsibility and they needed a lending system which would recognize that improvement in a visible way. Newstart is now set up as one of our registered ‘Communities’ which means that every one of their borrowers who meet our minimum credit requirements will now carry a Newstart ‘badge’ on their Loan Request in our marketplace. We hope that over time, this attracts more lenders around these loans.”
About The Newstart Canada Group of Companies: Canada’s original micro lender has been helping un-bankable Canadians improve their credit ratings since 1978. The Toronto, Ontario based group of companies has now provided over 30,000 consumer loans to customers who lack a sufficient credit rating to borrow from a traditional bank. Newstart connects customers, vendors and investors through its unique “Peer to Peer” program. Until recently Newstart Canada’s focus has been in the Auto Finance sector but the company is receiving interest from many other vendor controlled financing channels.
CommunityLend Inc. (www.communitylend.com) is Canada’s only peer to peer lending service, a financial services innovation which allows borrowers to connect directly with private 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. CommunityLend Inc. is registered as a Portfolio Manager and an Exempt Market Dealer in the provinces of Ontario, British Columbia and Quebec and is a wholly owned subsidiary of CommunityLend Holdings Inc., a Canadian corporation based in Toronto, ON.