Use of cookies by
Norton Rose Fulbright
We use cookies to deliver our online services. Details and instructions on how to disable those cookies are set out at By continuing to use this website you agree to our use of our cookies unless you have disabled them.
Borrowing from customers is a form of microfinancing | Canada | Norton Rose Fulbright

Borrowing from customers is a form of microfinancing

January 30, 2012

Pierre Crichton comments in the National Post on retailers who finance their businesses by borrowing money from customers through microfinancing via prepaid purchases.

There are a number of issues borrowers and lenders need to consider before doing this. These include whether an arrangement would trigger provincial securities laws, or taxable income considerations. These kind of loans could even “trigger a criminal code rate of interest. Section 347 of Canada’s Criminal Code pins the criminal interest rate at 60% a year.”

“Borrowing from customers is a form of microfinancing” is written by Drew Hasselback.