Montreal-based Thinking Capital Financial Corp.’s credit facility has more than doubled thanks to support from the Canadian Imperial Bank of Commerce (CIBC) and the Bank of Nova Scotia.
The two big banks, which are based in Toronto, are shoring up the online alternative lender’s debt facility to $125 million from its previous level of $50 million. Thinking Capital is a financial technology (fintech) company that finances small business loans between $5,000 and $300,000 with no requirement of upfront collateral. It has provided more than $400 million to 10,000 businesses across Canada since its inception in 2006.
“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,” says Jeff Mitelman, CEO and co-founder of Thinking Capital, in a statement on Tuesday. “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.”
CIBC’s partnership with Thinking Capital also includes a referral program called “Rapid financing powered by Thinking Capital.” The arrangement began in November 2015 and allows the bank’s small business owner clients to access the lender’s application process through CIBC’s website.
“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,” says Jon Hountalas, executive vice president of business and corporate banking with CIBC.
Scotiabank’s contribution to Thinking Capital’s debt facility is the most recent move in the bank’s quest to ramp up its technology efforts, which includes appointing Ignacio “Nacho” Deschamps as group head for international banking and digital transformation in February; the development of a stand-alone digital factory in Toronto; and the funding of a new digital banking lab at Western University in London, Ont.
“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,” says Gillian Riley, executive vice president of Canadian commercial banking with Scotiabank, in a statement. “We are delighted to support Thinking Capital in its effort to use technology to empower a better customer experience.”
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