LA-based SoLo Funds raises $10 million to offer an alternative to predatory payday loan providers
SoLo Funds wants to change payday lending institutions with a community-based, market-driven design for private financing, and now has $10 million to expand its company in the U.S. Payday lenders use high-interest, short-term loans to customers who are at their most susceptible, and the terms of their loans frequently trap customers in a cycle of financial obligation […] While Holoway would not disclose the book worth of the loans transacted on the platform, he did say the business’s default and delinquency rates were lower than that of its competitors. The company likewise provides a sort of default insurance item that loan providers can buy to backstop any losses they experience, Holoway said.”Our borrowers are school instructors … are social workers. It’s people who you may not think are going to be power lenders … They may make $100,000 to $125,000 per year,” stated Holoway. “They’re looking to diversify their capital and release it to make returns….
Recent Comments