July 26, 2015
This day and age is populated with thousands of students seeking higher education without the funds to pay for it, even after exhausting the possibilities of college financial aid programs. Nearly all of these young talented individuals do not have sufficient credit history to take out a traditional bank loan. The problem has been made dramatically worse by severe banking regulation in recent years creating significant barriers to credit.
Pave has recognized this problem as a market opportunity. The company has designed a progressive underwriting process that measures the value of a potential client’s ideas, goals and education, rather than their credit score. Pave empowers individuals to pursue their passions with the capital and support they need to do so. They operate like a Kickstarter for people’s dreams.
Pave is a marketplace lender focused on providing access to affordable credit through a personal and transparent funding experience. Pave's unique approach to underwriting takes a holistic view of a person's situation and potential, not just their FICO score. Pave’s partner, Cross River Bank, is the loan originator and Pave, Inc. is the loan servicer.
Pave is a New York-based startup with a solid team of young, energized, and experienced executives from blue chip companies. Co-founder Oren Base previously structured financial instruments at Goldman Sachs. The other co-founder, Sal Lahoud, lives with a Don’t let anyone call your ideas crazy unless they can successfully argue why philosophy. In addition to Pave, he is the chairman of The Fcancer Project. Nick Kucharski is an enthusiastic Pave engineer and has a strong computer science background previously working as a senior software engineer for Brightcove and Vistaprint in addition to starting out as a software developer intern for Microsoft. Every member of the Pave team is passionate about product, design and innovation. While Pave is still in the beta phase of its rollout, it has a number of prospective investors. The the average campaign size was around $24,000, with some as high as $75,000.
Pave loans are intended for people early in their careers, those who exude potential and drive. Pave's two/three-year consumer loans range in size from $3,000 up to $25,000. Rates start as low as 6% and they take in hundreds of factors into account when evaluating an applicant. While they use a consumer’s FICO score as a baseline, they also consider education, employment, work history and future earning potential. This underwriting process enables Pave to safely gauge how financially responsible a person can be, in turn allowing them to offer the lowest rate, without too much risk.
Pave believes these loans should be flexible. They aim to grant funding that encourages success rather than allotting pressuring deadlines that prevent it. Pave places no restrictions on how the money is used. The loans are personal and don’t damage borrowers’ credit. Basic eligibility for a Pave loan requires US citizenship, at least 18 years of age, a US bank account and a credit score of at least 660. Bottom line, Pave is financing a generation with great ideas, propelling opportunities like we’ve never seen before.