of their big institution counterparts? Lendi-
fied takes up to four times more risk than
the banks, thus their interest rates are re-
flectively higher, typically 14.99 percent.
“A lot of small businesses,” says Wright,
“use personal credit cards to fund their
business, so we try to compete with those
rates.” Lendified is also competitive in that
because it operates as a strictly online plat-
form, and the time constraints associated
with banking hours disappear. What they
have noticed, explains Wright, is the inter-
esting timing of when the applications are
submitted. “Many of them come through
outside of the 9-5 window – people are
busy running their business!”
Nearly one third of Lendified’s demograph-
ic is made up of the millennial age group,
accounting for almost 40 percent of all
small business loan applications, proving
that the 25- to 35-year-old age bracket is
comfortable with a business that operates
entirely online. Undoubtedly, the trend be-
speaks the future of online banking. As
Wright suggests, “it’s not a revolution, it’s
evolution: the existing incumbents, par-
ticularly the banks, know that they have
MARCH 2016
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business elite canada
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