TRY FOR FREE

Payday Loan Disruptor LendUp Raises $50 Million Funding

LendUp, a socially responsible online lender that disrupts payday lending, has recently raised $50 million in credit debt facility from Victory Park Capital. With the recent funding, the company has so far raised a total of $64 million in four rounds from 17 investors including Google Ventures, Data Collective, QED Investors, etc.

LendUp gives short-term loans to borrowers online;usually those that the banks won’t help. LendUp aims to build a fair and transparent lending to those who seek short-term loans. The company also wants to help the unbanked and underbanked from falling prey to non-bank sources which generally charge outrageous fees and interest rates. LendUp uses analytics to evaluate credit worthiness and analyze risk.

How LendUp is different from payday lenders

LendUp’s difference of payday lending lies in its transparency , up-front pricing and its LendUp Ladder. The LendUp Ladder allows customers to earn their way to an annual percentage rate (APR) as low as 29% over time as they repay their LendUp loans on time and complete credit education courses at the LendUp website.

As stated on the website, Moving up the LendUp Ladder means earning access to more money, at better rates, for longer periods of time.

Borrowers can achieve four levels in borrowing: silver, gold, platinum and prime. Starting with silver, borrowers can move up to prime which allows borrowing up to $1000 at rates as low as 29% APR.

About the company

LendUp, officially called Flurish Inc., was founded by Sasha Orloff and Jacob Rosenberg in 2012. A Y Combinator company, LendUp offers its service to customers in 16 states in the United States. The LendUp team is a group of engineers, designers, PhDs and community developers who come from backgrounds such as technology, non-profit, financial services, and academic.

RECOMMENDED