New York based startup Funding Community, Inc., launched crowd sourced fund lending platform a peer-to-peer lending platform for small business loans. The startup allows any individual to make an interest-bearing loan in support of small businesses seeking growth capital.
Funding Community is a crowdsourced fund lending platform for small business loans. Individuals make loans to support small businesses in their community and are repaid principal and interest every month. These supporters also receive “rewards” like store discounts from the borrowers they have supported.
Funding Community’s platform securely connects small businesses with their lending supporters without an onerous application process, long delays or large fees. With each loan, Funding Community also encourages businesses to provide “rewards” to their supporters, such as discounts, free products or memberships. By encouraging small businesses to reward lenders, Funding Community enables these companies to convert lenders into customers, creating the first loan that markets a business.
Users have to create a profile and share information about their business and the they you are looking for.
The users can give a discount or perk to turn lenders from passive supporters into champions of business and support with cash flow. Individuals lend $25-$1,000 each to support loan. Once it is fully funded the money is deposited directly to the account and money can be automatically withdrawn each month.
To mitigate risks of borrowers the crowd loan funding platform says it has the following mechanism in place.
Security interest: We hold a security interest in each borrower’s assets.
Personal guarantee: We required a personal guarantee before approving any loan.
Business analysis: We conduct a personal review and analysis of each borrower’s application
Social pressure: Each borrower’s name is public and our loans are most likely to succeed if a borrower brings its network in as lenders. Because borrowers repay Funding Community and we repay our lenders, a borrower cannot choose to repay certain lenders and not others. Therefore, any defaulting borrower would default to strangers and members of its network alike.
“Our goal is to provide small businesses with an abundant and inexpensive source of capital, while giving individuals the ability to support beloved local companies,” said CEO and co-founder Alex Binkley.
Check out https://www.fundingcommunity.com/