The lending companies are quite difficult to rely on as they completely depend on the customers who lack enough monetary help for covering the bills and are instead interested in paying interests on-lend money that can be spent sooner. The consumers with the worst credit or no credits are sometimes left with only little options instead of toiling with payday lenders who generally charge an enormously high yearly percentage rate. Till date, Ohio had an uncertain distinction of letting payday lenders to charge soaring rates compared to the other countries wherein the ARR of 591% is followed. Thus, venture capitalist Rebecca Lynn and the online lending company LendingClub investor have decided to stay away from the numerous startups in the overly populated industry.
Lynn had recently carried out a $10.5 Million investment in Possible Finance. The basic idea of the startup is to help people on the lower end of the credit spectrum to have a chance to improve their financial outlook devoid of being rapacious. The Possible Finance charges a lot on the loans compared to its rivals. The company has a mobile app through which the user can share the bank account for getting a loan from the startup. Possible does not look for into the credit history and instead makes a quick machine-learning- the based decision on whether taking a loan is a risky business.
After the loan is sanctioned, $500 is immediately transferred to the individual’s account and it can be later repaid through various installments in 2 Months period. The repayments help an individual a credit rating. The people get some time to repay and it also applies 150% to 200% range on APRs. The states are trying to set 4 times lower price than the traditional set price limits. The customers look for low-interest rate and faster line up of a loan. Last April, Ohio has a new payday lending law brought into effect so as to implement into the interest rate ceilings. Possible has raised around $13.5 Million in the new funding round from Unlock Venture Partners, Columbia Pacific Advisors, angel investor Tom Williams, and Union Bay Partners.
Tony Harrison has completed masters in business management and is associated with us from last 5 Years. He previously worked with MNC firm in management and marketing. Tony looks after business related news and opinion articles. A true coffee aficionado and artist on other side, Tony, covers a wide segment of new-age startups along with precise info of the financial trends and funding rounds. Tony also follows all trending ICO, distributed ledger technology, and transactions. He is also liable for content creation and provides the audience with real-time live feeds and updates. In leisure time, he loves to watch movies, plays, content-oriented movies, and TedX Talks.