Loop Canada review
- Monthly Account Fee
- $0
- Multi Currency Accounts
- CAD, USD, GBP, EUR
- FX Fee
- 0.1% - 0.5%
Summary
Multi-currency accounts and corporate credit cards to manage your global business banking needs.
Loop is a financial technology platform for Canadian businesses. It offers multi-currency accounts so you can get paid and pay suppliers in the local currency in the US, EU and UK. You can also avoid foreign exchange fees, access multi-currency business credit cards and choose an account plan that suits your business needs. However, two of the three available plans come with a monthly fee, so make sure you know exactly what you're paying for before you apply.
Best for: Canadian businesses that operate internationally and want to save money on foreign exchange fees.
- Make and receive payments in CAD, USD, GBP and EUR
- Pay bills in 37 currencies
- Multi-currency credit card so you can avoid foreign exchange fees
- Easy online signup
- Monthly fees apply for 2 of 3 plans
- Watch out for additional fees
- No Apple Pay or Google Pay yet
Loop: The basics
These are the standard features you can expect when you open an account with Loop Canada:
- Multi-currency account. You can use your Loop multi-currency account to hold funds in CAD, USD, GBP and EUR. This allows you to avoid currency conversion costs and get paid in the local currency where you do business.
- No minimum deposit. There’s no minimum deposit required to open a Loop multi-currency account, while there’s also no limit on the amount you can send or receive.
- Instant currency conversion. Loop allows you to convert currency instantly with competitive foreign exchange fees.
- Send funds in 37 currencies. Loop allows you to send payments to over 180 countries in 37 currencies, allowing you to pay your suppliers in their local currency.
- Multi-currency credit card. You can use a Loop card to spend in CAD, USD, GBP and EUR.
- Credit limit of up to $1 million. The Loop corporate credit card comes with a maximum credit limit of up to $1 million.
- Physical and virtual cards available. A free Loop Basic plan gives you access to two free physical Loop cards and 20 virtual cards.
- Accounting integration. You can integrate your Loop account with Quickbooks and Xero to make it easier to stay on top of managing your finances.
- Loop Capital. Loop also offers access to invoice financing, purchase order financing and inventory-secured lines of credit to help you grow your business.
What are the benefits of Loop in Canada?
Loop offers the following benefits to Canadian businesses:
- No account opening or monthly fees. It doesn’t cost anything to open multi-currency accounts with Loop, and you also don’t need to pay a monthly fee with a basic plan.
- No FX fees. If you need to send or receive money in CAD, USD, EUR or GBP, you don’t have to worry about foreign exchange fees eating into your transaction.
- Unlimited users. There’s no limit to how many users and cardholders you can have on your Loop account.
- Earn rewards on purchases. You can earn Loop points on all your Loop card spending, with points able to be redeemed for gift cards at brands like Amazon, Uber and Air Canada.
- 55 days interest-free. The Loop card offers up to 55 days of interest-free spending on your business credit card.
- Fluctuating credit limit. The credit limit on your Loop card is automatically updated every month based on your business’ sales and spending needs.
What are the drawbacks of Loop?
However, there are a few things you may want to keep in mind before signing up for Loop Canada:
- Monthly fees. While there is a free plan available, Loop Plus costs $49 a month and Loop Power costs $199 a month.
- Billing processing fees. When you request payments using Loop’s global billing solution, a billing processing fee applies. The size of the fee varies depending on your subscription plan.
- Currency conversion fees. When you need to convert currencies with Loop, a foreign exchange fee of between 0.1% and 0.5% applies depending on your account plan.
- No Apple Pay or Google Pay. If you want to connect your Loop corporate card to Apple Pay or Google Pay, the option to do this is still listed as “coming soon.”
- Personal guarantee. If your company has less than $10 million in gross profit, you’ll need to provide a personal guarantee to qualify for a Loop credit card.
Compare Loop plans
Check out the table below to compare the key features of Loop’s three pricing plans.
| Loop Basic | Loop Plus | Loop Power | |
|---|---|---|---|
| Monthly fee | $0 | $49 | $199 |
| USD, EUR and GBP accounts | Free | Free | Free |
| Account deposits | Free | Free | Free |
| Minimum deposit | $0 | $0 | $0 |
| Account fees | $0 | $0 | $0 |
| International wire transfer fees | $0 | $0 | $0 |
| Supported currencies | 37 | 37 | 37 |
| Request payments (billing) processing fee | 0.5% + $1 | 0.25% + $1 | Lower of $10 or 0.1% |
| Currency conversion fee | 0.5% | 0.25% | 0.10% |
| Loop card FX fees | 0% on CAD, GBP, USD and EUR | 0% on CAD, GBP, USD and EUR | 0% on CAD, GBP, USD and EUR |
| Physical Loop cards | 2 free cards ($5 thereafter) | 10 free cards ($5 thereafter) | 10 free cards ($5 thereafter) |
| Virtual Loop cards | 20 | Unlimited | Unlimited |
| Loop points earn rate | 1 point per $1 spent | 2 points per $1 spent | 2 points per $1 spent |
Is Loop legit?
Loop Financial was originally known as Lending Loop. Founded in 2015, Loop is a Toronto-based fintech that offers cross-border banking solutions. It is registered as a Money Services Business with FINTRAC, and also says it uses 24/7 fraud monitoring and AI detection to detect suspicious account activity.
Loop keeps client funds in accounts that are separate to its own. Deposits you make to the Loop US Dollar Account are insured by the Federal Deposit Insurance Corporation.
What should I know before I apply?
In its terms and conditions, Loop Canada says you will need to provide a range of company and personal data to open an account. Company data will include:
- Operational information
- Registered business name
- Business address
- Ownership details
- The nature of the business
- Details of linked accounts
The personal information you’ll need to provide includes the names, dates of birth and contact details of account users, company directors or beneficial owners.
You’ll also need to be the age of majority in your province or territory.
How do I open a Loop account?
It’s free to open a Loop account online. Here’s how:
- Navigate to the Loop website and click “Open Account”.
- Enter your name, business name and work email address before creating a password.
- Provide the personal and company information as specified above.
- Submit your application.
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Finder Score for business bank accounts
To make comparing even easier we came up with the Finder Score. Interest rates, account fees and features across 20+ business bank accounts and 15+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the account - simple.
Bottom line
If your business operates in Canada and internationally, Loop offers a competitive alternative to business banking products from major banks. With its multi-currency accounts and credit cards, it makes it easy and affordable to send and receive international payments. Just make sure you’re aware of any fees that apply, and compare a range of business bank accounts to find the right solution for your business.
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