New Trends to Watch Out for in terms of Canadian Private Lending

• April 16, 2017

The private lending sector in Canada has been undergoing tremendous changes in recent times. Getting loans from traditional financial institutions such as banks has become increasingly challenging.

Currently, there are private lenders and bad credit mortgage lenders whom have come about to bridge the gap that used to exist in the past. But as the landscape in the country’s financial sector continues to evolve, it is helpful to be aware of the prevailing trends and know how to benefit from them, if and when required.

Crowdfunding as a source of private lending

Crowdfunding is one of the new trends whereby individuals raise money via the internet for investments in businesses, ventures and other projects. The concept has become immense and in 2017, it is expected that it will become another viable option such as bad credit mortgages, since it is now possible for individuals to seek money in this manner for building commercial as well as residential houses. Though there are questions concerning the legality of using this method in the real estate industry, the trend is gathering a lot of momentum as more companies join the fray to complete their projects.

Micro Lending

The concept of micro lending has been around for a while, but it seems to have been picking up a lot of steam in the past few years. This is when loans are extended towards an impoverished person or business from an individual or a group. It can be viewed as a form of private lending in that it is associated with technology as seen in sites such as “Kiva”, where individuals and businesses can access credit in geographical locations where credit may not be readily available.

More trends are likely to emerge in the private lending sectors, but these are the main two which are worth watching out for in the coming years.