Y Combinator-incubated LendUp launched in October with backing from Kleiner Perkins, Andreessen Horowitz, Bing Ventures, Kapor Capital among others, to create a fresh answer to a classic issue: you must spend your bills now, but you donвЂ™t have the cash to pay for them. As opposed to look to predatory loan providers and banking institutions, using their high interest levels, borrow funds from buddies or protect your eyes and hope they go away, where do you turn?
It might appear like a predicament that only befalls the chronically reckless, however in reality, 15 million Us citizens looked to payday lenders to borrow cash year that is last. As opposed to winding up saddled with long-lasting financial obligation from concealed fees or wrestling with Draconian terms and expensive rollovers, LendUp desires to offer those trying to find a fast fix to a short-term economic conundrum a method to borrow funds without concealed charges, high priced rollovers and high-interest prices.
The financing area in particular has started to brim with startups вЂ” like BillFloat, Zest, Think Finance, Kabbage
On Deck and Lending Club вЂ” each of which can be wanting to make it easier for customers and businesses that are small obtain access to money and never have to jump through a million hoops. LendUp, on the other hand, is positioning it self as a lender that is direct utilizing technology and Big Data to permit customers with poor or no credit to obtain use of small-dollar, short-term loans (as high as $250 for thirty day period) and build their credit while doing this.