U.S., Canadian Lending Groups Forge New Partnership
The Innovative Lending Platform Association, which has introduced some transparency-minded tools for U.S.-based online lenders, hopes to bring those tools to the Canadian market with the help of the Canadian Lenders Association.
The Innovative Lending Platform Association, which has been focused on boosting transparency in online lending, is helping its counterpart to the north do the same.
This week, ILPA announced a partnership with the Canadian Lenders Association. The groups will team up on improving lending offerings to the Canadian market by offering tools to CLA members meant to assist them in lending to small businesses.
“We are excited about this opportunity to expand ILPA’s mission,” ILPA Executive Director Chris Walters said in a news release.
To start, ILPA will work with the Toronto-based group to adapt its SMART Box pricing tool, which it introduced last year with the help of the Association for Enterprise Opportunity. The tool is designed to break down the nature of loans in a way that is transparent and easy to follow. The comparison tool makes it clear what fees are attached, how much an investor needs to pay back each month, and whether prepaying on the investment introduces new fees.
“The SMART Box is all about transparency,” noted Kathryn Petralia, cofounder of the lending firm (and ILPA member) Kabbage, in comments to Lend Academy. “We want to enable the small-business borrower to have a complete look at all the details of their financing. It is also a sign of maturity in the online small-business lending industry.”
CLA President Gary Schwartz added that working across the border could help ensure this kind of innovation lands in the hands of its members.
“The CLA is committed to bringing innovative and responsible solutions to small businesses and individuals throughout Canada,” Schwartz said in the release. “We believe that cross-border partnerships with industry thought leaders like the ILPA will increase the awareness and adoption of innovative digital lending platforms in Canada.”
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