The Globe and Mail | Oct. 30, 2017
As alternative lenders for small businesses look to expand their market share in Canada, a number have banded together to bring more transparency to an industry sometimes criticized for taking advantage of borrowers.
Seven non-bank lenders, acting as part of the newly minted Canadian Lenders Association, will soon be using a standardized disclosure form that makes it easier for borrowers to see how much they’re actually paying for a loan.
Rather than having key information scattered throughout a dense multipage loan agreement, the “Smart Box” pulls all pertinent payment details into a single sheet. The hope is that the standardized form will make it easier for borrowers to compare different lenders’ rates by factoring in both interest and fees.