CapitalThinking

Thinking Capital, now operating as Driven, by Purpose, stands as a significant player in the Canadian financial technology sector, specializing in providing capital to small and medium-sized businesses (SMBs).

The company was co-founded in 2006 by Jeff Mitelman and Greg Mitelman, with Peter Mazoff also credited as a co-founder. Jeff Mitelman, who served as CEO, brought experience from co-founding Cardex Payments in 2001, where he was instrumental in introducing the white-label bankcard industry to Canada. This background in financial products and new business models directly informed Thinking Capital's mission to adapt the American merchant cash advance (MCA) model for the Canadian market. Greg Mitelman's prior entrepreneurial success, including founding ATMS, which was among the first to deploy non-bank ATMs in Canada, also shaped the company's innovative approach. The firm was established to address a critical gap in the market: the difficulty Canadian small businesses faced in securing traditional financing due to a lack of specific credit-worthiness metrics. Since its inception, the company has provided over $1 billion in funding to more than 17,000 SMBs across Canada. A major milestone occurred in March 2018 when Purpose Financial acquired Thinking Capital for a sum reported to be over $200 million. Following the acquisition, Thinking Capital continued to operate from its Montreal headquarters with its existing team, and Jeff Mitelman became a Managing Partner at Purpose Financial.

Thinking Capital operates as an online lender, targeting a wide array of Canadian SMBs, including restaurants, retail stores, and construction companies, that have been in operation for at least six months and meet minimum monthly sales thresholds. The business model is centered on leveraging technology for rapid credit adjudication, focusing more on a business's cash flow rather than traditional credit scores. This allows for quick funding, often within 24-48 hours of application approval. The company generates revenue through interest and fees on its financing products. Its offerings include term loans (called "Fixed") and merchant cash advances (called "Flexible"). The term loans provide a lump sum of capital up to $300,000 with fixed repayment schedules, while the MCA offers funding based on future sales, with repayments tied to a percentage of daily card sales. The company has established strategic partnerships with major Canadian financial institutions, payment processors, and brands like Staples and CIBC to expand its reach. In March 2022, the company rebranded to 'Driven, by Purpose' to reflect an expanded mission of supporting businesses with data-driven insights in addition to capital.

Keywords: online business lender, small business financing, SME lending, fintech, merchant cash advance, term loans, Canadian business loans, alternative financing, cash flow lending, Driven by Purpose, Jeff Mitelman, Purpose Financial, business capital, commercial credit, online lending platform, SMB funding, financial technology, corporate finance, debt financing, asset-backed lending