We spend a lot of time talking about why Lending Loop is excellent, and we thought it was time to let some of our Lenders do the talking. Read on to learn more about Tyler’s experience with Lending Loop.

Tyler, Production Supervisor

1. What drew you to Lending Loop?

I was looking to diversify my portfolio. At the time I was 100% in stocks or mutual funds. I’m now happy to have Lending Loop loans in my portfolio, which should be roughly uncorrelated from the broader equity markets.

2. What’s your primary goal on Lending Loop?

My goal, as with any other investment I make, is to turn money I have now into much more money in the future. But Lending Loop loans have the side benefit of helping Canadian businesses improve and grow their businesses.

3. Do you have an investment strategy?

Yes I do. First, I look at the reason for the loan—if I was running the business and would borrow money for the same reason, then I’ll consider it further. Next I look at the financials, focusing on cash flow (adding back depreciation to net income), I like to see positive cash flow and growing with time. Third, I look to the borrower Q&A, mostly just looking for transparency. Lastly, I compare my own analysis to the interest rate. If I think the borrower is a better credit risk than their interest rate indicates, I invest more into that loan. If I feel the loan is properly priced, I put $25 into the loan if everything else checks out.

4. What is your favourite part of the Lending Loop platform?

Honestly, the platform itself is beautiful. It looks great, and it’s easy to find everything I need to and invest money. As far as investing platforms go, it’s as simple and good looking as it gets.

5. How has your experience been on Lending Loop and with peer-to-peer lending in general?

I’ve enjoyed Lending Loop. I think there are a few things that could be improved but I haven’t been disappointed because even with those issues (long time to fund account, recently a long time for loans to fill) Lending Loop has exceeded all of my expectations.

 6. What business were you most excited to invest in?

There was recently a co-working space office loan. The company was very profitable and were looking to expand and grow their business. The interest rate was 18.4%, which I thought was too high given their profitability and the burgeoning industry they were in. When I saw the loan I knew I wanted to invest.

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