Raising funds is a major issue for many start-ups and small scale industries. A number of start-ups and small industries die each year due to insufficient funds. With the emergence of Fintech companies, there is a ray of hope as many of these Fintechs work around providing legit and secure financial resources for small as well as medium scale industries. Listed below are some of the Fintechs that lend funds to other organizations.
Affirm finances purchasing of retail customers through instant loans with 0% to 30% interest rates. Affirm directly connect with virtual stores. Here customer carries out purchases at the checkout directly through the Affirm. Later Affirm services loans to relevant customers.
Avant is a Fintech platform that provides instant online loan services to its retail customers. Loans can range in $1000 to $36,000 with interest lying between 10% to 36% for the timeframe of 2 to 5 years. Until now Avant has given out $2 billion with the average size of the loan being $8,000.
Borro is a US-UK based online platform that lends loans against luxury assets, properties, and other valuables. Borro offers nonrecourse loans which allow clients and customers to utilize luxury assets like jewelry, fine art, luxury, and classic cars, watches, memorabilia, etc.
C2FO identifies itself as the market of working capital and also optimize the services of businesses. It utilizes a bid system along with algorithms. It teams up buyers who have extra cash with suppliers who are ready to provide extra discount upon early payments which promote optimization of cash flow of enterprises.
Fundbox offers small organizations an advance against outstanding invoices. Business owners decide against which invoice to borrow advances and amount is directly transferred by Fundbox to their personal bank accounts and repayments are automatically debited. Fundbox has established itself with 30,000 small business clients.
Fundera is a platform that connects needy businesses with 28 potential fund providers that are best suitable for them. Already screened lenders collect superior quality of funding resources to ensure owners with fair interest rates and terms on every granted loan.
7. Funding Circle
Funding Circle is based on peer to peer model where savers directly lend cash to medium and small scale industries. Loans can cost up to 7% to 33% per annum and the loan amount may range between $25K to $500K. It usually takes around 10 days to get your loan approved. For investors, it minimizes the chances of running into bad debts.
Kabbage targets sellers and merchants from e-commerce sites like eBay and Amazon as well as other traditional sellers that are ignored by lenders. Kabbage refers to business volume, turnover, feedback history, ratings, banking accounts, and other data before allotting unsecured financial advances over the internet.
OnDeck is a Fintech platform which evaluates the financial health of medium as well as small sized business with the aid of electronic payment technologies and data aggregation before delivering capital to underserved markets.
PROSPER is another peer-to-peer lending platform which connects borrowers with lenders to provide unsecured loans with rates ranging between 5.99% to 36%. Here individual borrowers can ask for personal loans and lenders can fund money from $2000 to $35,000 per loan. PROSPER deals with servicing of loans, retrieves interests and distributes them back to investors.
Vouch utilizes a social network of loan providers that allows borrowers having low credit points to get lesser rates on a large amount of loan by having relatives and friends provide guarantee or vouch for smaller amounts of loan.
Wonga is a British platform that offers short-term and high-cost credits to retail customers.
Development of finance technology has made it possible to ensure safe and secure transactions which can be carried across the various platforms facilitating different ways and methods of lending and borrowing money across the globe within a few seconds. Whether you opt for the peer-to-peer model of platforms like PROSPER or social networking approach of Vouch, there are many methods and ways to obtain a loan or raise funds to ensure unhindered growth and progress of your business with the only difficulty being selecting the right platform to suit your needs.