Y Combinator-incubated LendUp launched in October with supporting from Kleiner Perkins, Andreessen Horowitz, Bing Ventures, Kapor Capital yet others, to create a solution that is fresh a classic issue: you need to pay your bills now, but you don’t have the funds to cover them. As opposed to move to predatory loan providers and banking institutions, due to their high interest levels, borrow cash from buddies or protect your eyes and hope they’re going away, where do you turn?
It might appear like a predicament that only befalls the chronically reckless, however in reality, 15 million People in the us looked to payday loan providers to borrow cash this past year. Rather than finding yourself saddled with long-lasting financial obligation from concealed fees or wrestling with Draconian terms and expensive rollovers, LendUp would like to provide those shopping for a fast fix to a short-term monetary conundrum ways to borrow cash without concealed charges, high priced rollovers and high-interest prices.
The financing area most importantly has begun to brim with startups — like BillFloat, Zest, Think Finance, Kabbage, On Deck and Lending Club — each of that is attempting to allow it to be easier for customers and businesses that are small access money and never have to leap via a million hoops. LendUp, in comparison, is positioning it self as a lender that is direct utilizing technology and Big Data to permit consumers with bad or no credit to obtain use of small-dollar, short-term loans (all the way to $250 for thirty days) and build their credit while doing this.