Discover the leading fintech lending startups in Toronto, including Borrowell, Clearco, and Lending Loop. Learn how they’re transforming personal loans and business funding in Canada.
Toronto is not only Canada’s financial capital but also a hotspot for fintech lending innovation. Traditional banks often make credit access slow and complex.
In response, fintech startups in Toronto are leveraging AI, open banking, and digital platforms to provide faster, fairer, and more transparent lending solutions.
These companies are reshaping how Canadians access personal loans, business funding, and credit tools.
Contents
Why Fintech Lending is Growing in Toronto
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High demand for alternatives to banks – Consumers want faster approvals and lower fees.
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Technology-driven solutions – Use of AI, machine learning, and open banking for better risk assessment.
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Supportive ecosystem – Toronto’s proximity to the Big Five banks, plus incubators like MaRS and DMZ, accelerates growth.
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Financial inclusion – Startups are helping underserved populations access fair credit.
Top Fintech Lending Startups in Toronto
1. Borrowell
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Founded: 2014
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Focus: Personal loans, free credit score monitoring, and financial product recommendations.
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Highlights:
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Over 2 million users across Canada.
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AI-powered credit coaching platform.
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Partnerships with Equifax and major financial institutions.
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2. Clearco (formerly Clearbanc)
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Founded: 2015
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Focus: Revenue-based financing for e-commerce and SaaS businesses.
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Highlights:
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Co-founded by Michele Romanow (Dragons’ Den).
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Has invested over $3 billion into 7,000+ companies.
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Provides capital without taking equity.
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3. Lending Loop
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Founded: 2014
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Focus: Peer-to-peer (P2P) lending for small and medium-sized businesses (SMEs).
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Highlights:
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Canada’s first regulated P2P lending platform.
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Connects businesses directly with investors.
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Supports Canadian entrepreneurs who struggle with traditional bank loans.
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4. PayBright (acquired by Affirm)
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Founded: 2009 (Toronto)
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Focus: Buy Now, Pay Later (BNPL) solutions for consumers.
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Highlights:
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Partnered with thousands of Canadian retailers.
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Provides installment payment options at checkout.
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Acquired by Affirm (U.S. BNPL giant) in 2020 for CAD $340 million.
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5. FundThrough
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Founded: 2014
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Focus: Invoice financing and working capital for small businesses.
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Highlights:
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Helps businesses unlock cash tied up in unpaid invoices.
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Fast, digital-first funding decisions.
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Strong reputation among Canadian SMEs.
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Emerging Trends in Toronto’s Fintech Lending
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AI-powered credit scoring → Better financial inclusion.
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BNPL expansion → Increasing adoption in retail and e-commerce.
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SME-focused lending → More startups serving entrepreneurs.
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Open banking → Will soon transform lending by enabling secure data sharing.
FAQ
1. What is the biggest fintech lending startup in Toronto?
Borrowell and Clearco are among the largest and most influential fintech lending startups.
2. How do fintech lenders differ from banks?
They use digital platforms, AI, and faster processes, often approving loans in hours instead of weeks.
3. Is fintech lending safe in Canada?
Yes. Many Toronto-based fintech lenders are regulated and partner with major financial institutions.
4. Which fintech startups focus on small businesses?
Clearco, Lending Loop, and FundThrough specialize in SME and entrepreneur-focused lending.
5. What’s the future of fintech lending in Toronto?
Growth will come from AI-driven credit, open banking, and expansion into international markets.
Conclusion
Toronto’s fintech lending startups—from Borrowell’s personal loans to Clearco’s e-commerce funding—are revolutionizing credit access in Canada. By offering faster, more flexible, and inclusive lending solutions, these startups are reshaping the financial landscape and challenging traditional banks.
With strong investment, government support, and access to top tech talent, Toronto will continue to be a global hub for fintech lending innovation.