Getloop, or just Loop, is a new Canadian-based fintech startup that offers small business banking solutions to Canadian businesses.
Loop focuses heavily on eCommerce businesses, as it provides intuitive solutions for handling international business and managing foreign currencies.
Is Loop really as good as it claims to be, though?
Below, I’ll give you my in-depth opinion and my Getloop.ca review, so you can see if it’s the right solution to your business.
Lending Platform for eCommerce
Manage foreign currencies, take advantage of low-cost international transfers, and access low-interest lines of business credit
- Apply for business capital to help your business grow
- Low interest rates on small business loans
- Open a USD bank account (even if you’re a Canadian business)
- Spend money in four currencies with the Loop Corporate Card
- No more peer-to-peer lending after the change from Lending Loop to Loop
- Not a substitute for an actual business bank account
Getloop Review: What Is Getloop?
Some of you may remember Lending Loop, which I previously reviewed. Lending Loop was a revolutionary peer-to-peer lending platform that allowed small businesses to request and invest capital into other Canadian businesses.
In 2020, though, Lending Loop ceased operations and drastically changed its business model and its name.
It reopened as Loop, and the new company focused on creating solutions for eCommerce and other small businesses in Canada.
Lending Loop is a completely different company from Loop. So, don’t expect the same peer-to-peer lending options that Lending Loop was known for.
Now, Loop directly handles financing, and offers lines of credit to eligible small businesses in Canada.
Today, Loop specializes in helping small businesses that do business internationally.
It’s no longer just another lending platform. Instead, Loop provides solutions to small businesses in Canada who need to send or receive money in other currencies.
For example, Loop allows you to open a USD account where you can transfer funds from US-based eCommerce sales.
From there, Loop allows you to convert your USD to CAD and transfer the funds to your Canadian business account.
Loop also provides its signature “Corporate Card” – a Mastercard credit card that allows you to spend money in four different world currencies:
- Canadian Dollar (CAD)
- US Dollar (USD)
- British Pound (GBP)
- Euros (EUR)
This is a great tool for business owners who find themselves travelling in the states or Europe. Loop’s foreign exchange rates are considerably lower than you’ll get from a standard bank.
Now that you know a little bit more about how Loop works and how it’s different from its predecessor, Lending Loop, let’s take a closer look at the financial products offered by Loop.
Loop provides a simple solution to eCommerce companies that regularly make sales or buy from companies around the world. Currently, Loop supports 37 global currencies and plans to provide support for even more currencies going forward.
This is great news for wholesalers, brand owners, and international eCommerce businesses. I have a friend who owns a company selling custom clothing that he purchases from a Chinese wholesaler.
He uses Loop to conduct business with his Chinese manufacturer, as Loop has lower fees than his Canadian bank account.
Loop can also be a great tool for digital nomads who own online businesses and must send money internationally.
Often, freelance web designers, copywriters, and graphic designers find themselves working for foreign clients and need a safe, secure way to send and receive funds.
Whenever you receive money to your Loop account in a foreign currency, it will be separated into its own separate account.
This allows you to easily keep track of your sales and payments in foreign currencies instead of lumping everything together into the same account.
Currently, Loop allows you to open a USD account. Loop plans to offer separate Canadian, UK, and European bank accounts in 2023 as well.
This essentially allows you to manage your international business 100% remotely as you travel and conduct business through Canada, the UK, and Europe.
While Lending Loop doesn’t offer peer-to-peer lending like it once did, it does offer direct business financing. This can be a useful tool for small businesses that are trying to start from the ground up.
Loop can provide capital for:
- Covering production costs
- Invoice financing
- Flexible lines of credit (in USD or CAD)
Of all these, the invoice financing line of capital is particularly useful. For example, invoice financing allows you to get your money early if you have a client who you’ve billed on net-30 terms (meaning that they don’t have to pay for 30 days).
This, in turn, gives you more money to work with and ensures that you’re not struggling to stay afloat while you wait for invoices to clear.
Loops Corporate Card is a Mastercard credit card that provides varying lines of credit to eligible small businesses.
Unlike most credit cards, which only allow you to spend in one currency, the Corporate Card allows you to spend your line of credit in four different currencies:
As a Canadian business owner, you can take this card overseas to the UK and use it to pay for your client’s dinner with no costly foreign exchange fees.
The card manages your credit balance in each currency separately, so you can break down exactly how much you’re spending. This can be helpful when it comes time to do your taxes at the end of the year.
You can pay your Corporate Card balance off using your linked Canadian business bank account without having to worry about any additional foreign exchange fees either.
According to Getloop.ca, Loop operates on several core values, including:
- Listening to understand (they value customer feedback)
- Transparency (regarding costs and fees)
- Reliability (few glitches and hiccups when transferring funds)
- Eyes on the future (more products and banking solutions coming in the future)
To me, it sounds a bit scripted – like the same promises offered by a number of emerging fintech startups. But I appreciate the gesture nonetheless.
Applying for a Loop account is 100% free, which is a great reason to give the service a try. You can always close your account if you don’t like the service.
Seeing as Loop doesn’t have any monthly maintenance fees, though, I think it’s a good idea to keep an account open in case you ever need to transfer money internationally.
Loop earns most of its revenue through credit card interest charged on the Loop Corporate Card and through interest earned on business capital lines of credit.
Is Getloop Legitimate?
Loop is one of many new fintech startups in Canada. Generally speaking, I tend to be a bit wary when it comes to new banks and financial products, as they don’t have a proven track record yet.
That being said, Loop appears to be a legitimate service and seems to have positive ratings across the board. I don’t use Loop myself, so I can’t offer much in terms of personal experience.
However, I have several friends who operate eCommerce shops and sell on Amazon who’ve found Loop’s foreign currency exchange feature very helpful.
If you’ve been keeping up with my blog, then you may have seen my review of Wise (formerly Transferwise). When I first came across Loop, I thought, “This looks very similar to Wise.”
Upon closer review, Wise and Loop offer very similar services. Both offer low-cost international money transfers, allow you to open up a business banking account, and both offer multi-currency credit cards.
Personally, I’m going to keep on using Wise.
I’ve used Wise for several years now to help me manage my business, and it’s never let me down. The fees are low, the customer service is great, and I rarely experience problems.
That being said, if you don’t already have a Wise account, then Loop appears to be a reliable alternative.
Loop’s switch from a peer-to-peer lending platform (Lending Loop) to a foreign currency management platform was a major shift in its business model.
If you’re a digital nomad, operate an international eCommerce brand, or frequently send and receive money internationally, then Loop would be my second choice after Wise.
To compare the two and learn more, keep on reading to see my full review of Wise’s international currency management features.