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Lending

Lending Program

We fund Entrepreneurs – we call this “The e2 Factor”. Our financing products are designed to help entrepreneurs, businesses and individuals capitalize on immediate opportunities. Our short term lending model bridges financial needs over short but critical periods, and tops up traditional financing sources. Our loans are structured to assure your funding needs are met.

Let’s face it, banks just won’t fund all loans especially entrepreneurial loans. Our small business lending program ensures your funding needs are met over the short term, to take you to a stable place where traditional financing is available.

Responsible lending means you can afford the commitment you make to us. At iFund Diversified Lending, mutual success is paramount.

Lending Criteria

Qualification for our loans can be met in several ways. The standard criteria for a successful application includes but is not limited to:

Asset Coverage

Up to a 90% loan-to-value ratio. The security value of assets pledged will be determined by appraisals, assessments and other acceptable valuations. Some assets will be considered based upon liquidation value. Assets might include real estate, machinery, equipment, accounts receivables and inventory.

Debt Serviceability

A clear demonstration of cash flow generating ability will be required to show that financing can be serviced from operations.

Exit Strategy

iFund’s lending facilities cannot exceed two years in term. The applicant will need to present a clearly defined strategy for repayment.

Rates and Fees

iFund Lending's loans are secured. Because risk is the primary determinant of pricing, interest rates and fees properly reflect the risk we take.

General interest rates are between 10% – 15% per annum.

General one-time commitment fees are 2% – 4% of the principal amount.

Both of these guidelines are subject to change based on your specific borrowing qualifications.

Repayment Options

Interest Only – Simple Interest Monthly: Fixed monthly payment, principal due at the end of term

Constant Payment – Simple Interest: Blended principal + interest, fixed monthly payment

Straight Line Payment – Simple Interest: Blended principal + interest, fluctuating monthly payment

Interest Accruing – Compound Interest: No Monthly payment , principal + interest due at end of term

iFund Lending will approve the repayment option that best meets the applicant’s needs in relation to the perceived risk in the loan.

Great Successes
Lending FAQs
  • Will iFund loan anywhere in Canada?
    • No, iFund Lending concentrates its business in Western Canada only.
  • How much can I borrow?
    • iFund Lending considers loans between $50,000 and $500,000. For loans in excess of $500,000 we will refer qualified candidates to our lending partners.
  • What if I have poor credit history?
    • Solid credit history is a key ingredient to our lending model. However, the acceptable beacon score we will consider varies and we welcome you to contact iFund if there’s any concern.
  • Can I repay my loan early?
    • Yes, we encourage responsible borrowing, allowing you freedom to pay off your loan early if possible. You can pay out your loan early or make lump sum payments during the term with no penalty.
  • Does my application affect my credit rating?
    • No. However, an application with iFund will be recorded as an enquiry on your Equifax Credit Report.
  • What are the terms of repayment?
    • Repayment terms are generally interest only on a monthly basis or custom repayment options such as no payment with 100% principal & interest due at end of term. This pre-determined payment formula will be agreed upon prior to the loan being funded.
  • What types of industry does iFund Lending favor?
    • iFund Lending will review loans applications from all industry sectors.  To date, iFund Lending has made loans to companies in light manufacturing, food services, real estate and agriculture.
  • Do I need to have corporate and/or personal assets in order to qualify?
    • Yes, iFund Lending is asset-based lending.
  • Will I need to provide a business plan and sales funnel for my loan application?
    • iFund Lending takes into consideration all aspects of the business including financial statements, business plan, accounts receivable etc.
  • Will iFund Lending take an equity stake in my business?
    • No, iFund Lending provides debt financing only and is an alternative to equity based financing for small and mid-sized companies that want to retain full ownership.