A Los Angeles-based fintech has relied on the kindness of strangers to fuel a peer-to-peer mobile lending platform it hopes will steer consumers away from high-interest payday loans while making them more creditworthy in the future for the past year.
SoLo Funds focuses primarily on small-dollar loans by having a $1,000 limit, permitting customers to do something both as lender and debtor. It is an industry generally speaking seen as underserved considering that banks generally avoid small-dollar loans because of conformity issues. Travis Holoway, SoLoвЂ™s co-founder and CEO, began the business year that is last he saw the fairly high charges and rates of interest charged by numerous payday loan providers.
вЂњI quickly noticed here needed seriously to be much more access that is affordable small-dollar loans,вЂќ Holoway stated in a current interview with US Banker.
Through the company’s site, SoLo users can request to borrow funds from other people on the website. People who provide cash cannot fee interest, but could gather cash within the kinds of recommendations. Borrowers also set the repayment date. If loan providers are experiencing particularly large, they could waive the necessity for a financial loan to back be paid.