The debt facility, operated by online lender Thinking Capital, will be used to meet rising demand for small business loans
TORONTO, May 31, 2016 /CNW/ - Scotiabank (TSX:BNS) and Canadian Imperial Bank of Commerce (TSX:CM) are shoring up Thinking Capital's credit facility to $125 million, bolstering their partnership with the FinTech lender, to provide more loans to small businesses. Scotiabank and CIBC are continuing to embrace the FinTech sector, recognizing its capacity to significantly enhance the borrowing experience for small businesses.
The expanded facility more than doubles Thinking Capital's former $50 million debt facility, and will ramp up financing for loans ($5,000 to $300,000) to small business owners – all processed online in as little as 24 hours with no upfront collateral required.
"The extraordinary pace of change in almost all industries is being driven in large part by the rapid advancement and adoption of technology by both business and customers," said Gillian Riley, Executive Vice President, Canadian Commercial Banking at Scotiabank. "At Scotiabank, we are delighted to support Thinking Capital in its effort to use technology to empower a better customer experience."
"CIBC's support for Thinking Capital is about leveraging new and faster ways for Canadian small businesses to access funding, and broadens the borrowing options for these independent companies that are engines for job creation and economic growth," said Jon Hountalas, Executive Vice President, Business and Corporate Banking, CIBC.
"We are grateful for the continued support of our Canadian banking partners. Working together, we are transforming the landscape for small business borrowing in Canada," said Jeff Mitelman, CEO and Co-founder of Thinking Capital. "We've seen a 40% year over year increase in financing demand and today's announcement reinforces that the financial community recognizes the benefits of FinTech in the Canadian marketplace. The larger debt facility will help Canadian small business owners sustain and grow their businesses."
Through its innovative lending platform, Thinking Capital has revolutionized how small businesses access financing to support their growth. The Montreal-based FinTech lender has provided over $400 million to 10,000 businesses across Canada since its inception in 2006.
Small businesses represent more than 98 per cent of Canadian businesses, and account for almost 70 per cent of the total private sector labour force, according to the latest statistics from Industry Canada, now part of Innovation Science and Economic Development Canada. According to the latest government data, 36 percent of small and medium sized businesses requested some type of external financing in 2011.
To strengthen its ability to reach more small businesses across Canada, Thinking Capital recently entered into a referral partnership with CIBC as well as retail giant Staples Canada. CIBC's Rapid Financing powered by Thinking Capital and Staples Business Loans powered by Thinking Capital allow small business owners to apply for loans online, receive a decision in real time, and have funds in their account in just a few days. Thinking Capital now also has a new app available in Shopify Inc.'s (TSX: SH) App Marketplace.
About Thinking Capital
Thinking Capital, a leader in the Canadian FinTech industry, is focused on reinventing the way small businesses access credit. Since 2006, it has helped more than 10,000 small- to medium-sized Canadian businesses reach their full potential. By combining industry experts and technology, Thinking Capital is transforming the opportunity for business owners to obtain capital to ultimately grow their business through speed and convenience. For more information, visit https://www.thinkingcapital.ca/.
Scotiabank is Canada's international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and Asia-Pacific. We are dedicated to helping our 23 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of more than 89,000 employees and assets of $920 billion (as at January 31, 2016), Scotiabank trades on the Toronto (TSX: BNS) and New York Exchanges (NYSE: BNS). For more information, please visit www.scotiabank.com and follow us on Twitter @ScotiabankViews.
CIBC is a leading Canadian-based global financial institution with nearly 11 million personal banking and business clients. Through our three major business units - Retail and Business Banking, Wealth Management and Capital Markets - CIBC offers a full range of products and services through its comprehensive electronic banking network, banking centres and offices across Canada with offices in the United States and around the world. You can find other news releases and information about CIBC in our Media Centre on our corporate website at www.cibc.com.
SOURCE Thinking Capital
For further information: Tia Thomas, Environics Communications on behalf of Thinking Capital: (firstname.lastname@example.org), (416-969-2729); Heather Armstrong, Public, Corporate and Government Affairs, Scotiabank (email@example.com) (416-933-3250); Olga Petrycki, External Communications, CIBC: (firstname.lastname@example.org), (416-306-9760)