Author: Rob Khazzam

In July, bank regulators released a troubling report on bank-branch mutual fund representatives. The findings aren’t subtle. One in four reps admit they sometimes recommend products not in clients’ interests; one in three say clients get incorrect information. 

That should set off alarm bells for anyone with a chequing account. In that report, the Ontario Securities Commission (OSC) and the Canadian Investment Regulatory Organization (CIRO) flag high-pressure sales cultures, limited range of products and poor advisor knowledge as contributing factors. But it’s not just everyday consumers who are affected. Canada’s small and medium-sized businesses (SMBs) face the same outdated practices and limitations, plus even more damaging barriers.

SMBs account for 98% of all businesses in Canada, employ two-thirds of the private sector labour force and contribute to about half of Canada’s GDP. Yet major financial institutions still treat them like personal banking clients. Despite their contributions to the economy (and prevalence in big bank marketing campaigns), they struggle to access the working capital required to start, maintain and scale businesses.

Float’s 2024 survey found that 25% of all SMBs have a hard time accessing bank loans. For newer businesses, that number is closer to 70%. Many are denied loans altogether unless they can provide collateral worth triple the loan value, usually in the form of their personal home or any value their business has managed to build up. And for many early-stage entrepreneurs, that’s simply not an option.

For the minority that do manage to access a bank loan, it’s likely not enough. Andrew Spence’s book Fleeced: Canadians Versus Their Banks cites a CFIB report where the median loan is just $156,000. Too small to make a difference, but large enough to carry steep interest rates. SMBs pay up to 2.5% above prime, six times the same gap in the US.

Even worse, these loans come with strings attached. Banks insert restrictive clauses into credit agreements—especially venture debt—that block companies from using modern financial tools like virtual cards and automated cash flow platforms. These tools improve visibility and speed up decision making, yet banks are quite literally barring their use. That’s not just market inertia. That’s intentional lock-in, a deliberate strategy to deprive Canadian businesses of choice and force them back into outdated financial systems and products. We’ve seen this first-hand at Float. Happy customers forced to close their accounts, not because they lacked value or chose another option, but because their bank decided for them.

In the absence of affordable bank loans, SMBs and entrepreneurs are pushed into another trap: high-interest credit cards. The CFIB also found 30% of SMBs rely on credit cards to finance their business, cards that often carry interest rates around 20%, originally set in the 1980s when prime rates were similarly high. But while prime has hovered near zero for over thirty years, credit rates have barely budged. Banks justify this wide margin by citing risk. In reality, that risk is passed to investors through credit card trusts, which allow banks to move credit card debt off their own balance sheets and bundle it into investments they can then sell. The risk is gone. But the 20% rates remain.

These costs aren’t just painful for individual businesses. They compound into a national disadvantage. While US businesses are being incentivized to turn away from foreign goods and build up domestic industries, Canadian SMBs face borrowing costs so high that they can’t bridge cash flow timing gaps, or match prices of foreign imports, or place large orders that lower per-unit costs. Canadian businesses, priced out of buying Canadian. By Canadian banks.

Instead of addressing these structural disadvantages through open banking reform—a framework that would give businesses secure, real-time access to their own financial data—Canada’s banks lobby for delays. They implement technical barriers to block data-sharing, even when customers explicitly ask for it.

Canada’s banking system is often called a bastion of stability. But all of this leads to the real question, stability for whom?

At best, that stability is a symbol. At worst, it’s a mirage, one that conceals a system designed not to grow small businesses but to preserve profit margins twice those in competitive markets. Banking should be about building: strong financial futures for Canadians, strong businesses for entrepreneurs. Instead, banks are putting their own profits over customers and the Canadian economy, just as international pressure demands that we build faster, more self-sustaining companies.

Imagine what would be possible if banks prioritized outcomes over fees. If they provided tools that helped businesses grow, instead of contracts that restricted them. If they built financial systems for the country’s most vital economic engine—not just its most profitable one. What would that do for the Canadian economy?

Because we know what it looks like when they don’t.

Float launched its first product in 2021, a single corporate card and a simple mission: cut through the red tape and give businesses the financial tools they need to move faster. The “big five” banks were notorious for underserving non-enterprise companies with high costs, low earning rates and some of the worst support experiences—all on top of antiqued or virtually non-existent software. Canadian businesses were—and still are—finding success despite their financial institutions.

Since then, we’ve kept that mission but expanded our financial platform with products to automate accounts payable, make reimbursements frictionless and surface real-time insights into company spending. Float now also offers virtual and physical cards in both CAD and USD, high-yield accounts and next-day fund transfers and payments, providing faster, more flexible alternatives to traditional banking services. Today, more than 4,000 businesses use Float to manage team spend, earn high-interest on cash reserves and save days of manual reconciliation.

But our ambition for Float is about more than a growing suite of products.

Over the past four years, our customers have told us that Float has revolutionized the way they do finance. Made their team’s work smoother and more efficient. Empowered employees and removed roadblocks. Matched their speed and sense of purpose. How they will be loyal to Float forever because it’s given them back hours they used to spend on tedious manual processes, time they can now put back into their business. As the son of a small business owner myself, I couldn’t be prouder and more grateful to be working alongside these owners, operators and finance leaders—the true backbone of our country.

And so today, I’m beyond excited to announce that we’re set to expand once again, backed by globally-recognized investors. Growth Equity at Goldman Sachs Alternatives is leading a $70 million Series B investment round to help Float continue building business finance products already trusted by Canadian brands of every size.

We have big plans. Funds raised in this round will go toward accelerating product expansion, continuing to attract top talent and expanding coast-to-coast, all driving toward that original mission of empowering Canadian businesses with the financial tools they need and deserve. This investment in Float is an investment in Canada.

But let me be clear about something.

Canada is at a tipping point. Our economic and social prosperity are at stake. Playing it safe is no longer an option. As a nation, we must aim higher by fostering innovation and removing barriers that make it harder to build businesses in Canada. We have to stop resting on the laurels of legacy institutions that no longer serve everyone.

At Float, we’re committed to being part of the solution by providing Canadian companies with greater access to capital, smarter automation, modern financial tools and expert support (that’s available more than just 9 to 5). We’re meeting businesses where they are and helping them get where they want to go: a stronger, more prosperous future.

For them, for Canada, for all of us.

We’re excited to announce that Float has closed US$30M in Series A financing led by Tiger Global. This new round of capital will help us further invest in our goal of creating Canada’s best corporate card and all-in-one spend management software. 

Thanks to our loyal and supportive customers, Float is now one of the fastest-growing companies in Canada. Since our public launch earlier this year, we’ve seen hundreds of companies adopt Float for business spending. Moreover, we’ve seen engagement on the platform skyrocket. The total payment volume on Float has increased ~20x since our seed financing in June 2021, and our average monthly customer spend has increased more than 6x since our public launch in March 2021. None of this would be possible without our amazing customers, many of whom have played a major part in helping us develop new products and features. We look forward to delivering even better service to our customers over the coming months and years. 

Float’s Vision & Mission

Float’s vision is to deliver an end-to-end business spending platform for small and medium-sized businesses. We want this platform to enable businesses and teams to focus on investing in their growth and eliminate the need to use different banking and software tools to make day-to-day payments. One of our first customers said it best — “It’s hard enough to run a business, let alone figure out how to spend the money in our bank account.” We believe a lot of businesses share this sentiment, which is why Float’s mission is to simplify spending for companies and teams.

The Problem Float Solves

The pain point that Float is solving has been top of mind for Canadian businesses and their teams for years, and yet largely ignored by existing market players. There are over one million companies in Canada spending nearly $3T per year and the process of getting a corporate card continues to be incredibly difficult for small-to-medium sized businesses. Despite being the number one preferred method of payment for ~80% of Canadian businesses, it still takes 4+ weeks to get approved and an endless number of forms required. If you’re lucky enough to get approved, you’ll likely get a card with stifling limitations — low limits, high FX fees, personal guarantees and the inability to share these cards with your broader workforce. And that’s just to spend! After all of that, you’re still left to find a way to systematize expense reports, receipt collection, month-end accounting reconciliation and more. Yuck. 

Enter Float

Float’s mission is to simplify spending for companies and teams. We offer Canada’s first high-limit, no personal guarantee corporate card and enable any business to start spending in 3 business days or less. Most importantly, our product is digital-first and empowers businesses and their teams to take control of how they spend. Administrators can create and cancel cards on the fly, set custom spending limits and assign cards to individuals on their team. Employees can request spend using Float directly from Slack, while managers can review and approve spend in real time. Float also speeds up the month-end closing process by natively integrating with popular accounting software such as QuickBooks and Xero. Lastly, Float offers 1% cashback on all transactions. That’s right – real cash in your account, no tricks or gimmicks. 

Excited About Our Mission?

Float is run by a passionate and mission-driven team that is focused on delivering world-class experiences to its customers. Our culture is dynamic, fast-paced and execution-oriented. We think we’re a great fit for talented people who want to operate with a high degree of ownership and accountability and always put customers first. We’re now hiring across major business functions! If our mission aligns with you, please get in touch or apply online.