Rising bank interest rates are starting to put a pinch on Canadian small businesses as borrowing costs rise and capital becomes harder to come by.
This is going to become an ever increasing concern for Canada's 1.14 million small businesses.
To tackle this issue, Craig Asano, founder and chief executive of the National Crowdfunding and Fintech Association of Canada, and Michael King, co-director of the Scotiabank Digital Banking Lab, believe online, crowdsourced, peer-to-peer (P2P) lending is a potential solution.
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In an op-ed for The Globe and Mail, Asano and King feel the federal government has an important role to play to push P2P lending.
"Our hope is that Canadian politicians recognize that promoting innovation means more than cutting ribbons and offering tax credits. It is about plugging holes in a leaky financial system and adding wind to the sails of small businesses to move them forward."
