Finance startup, Capital Bean, has recently launched their latest loan connection service, aiming to help consumers find safe and accessible loan funding in a timely manner.
In a timespan of just 5 minutes, customer requests are paired together with lenders who are most likely to fund their loans – ranging from $100 up to $35,000. The service bases loan approval on a number of consideration factors including the loan amounts, length of the loan as well as the customer’s credit history and income details.
The service was developed after discovering a gap in the short-term lending market – fulfilling a much safer service in comparison to the competition of local payday stores operating on both the high street and online.
Co-founder Richard Allan commented: “Capital Bean is highly tech-driven, which allows for such a fast pairing process between the borrower and potential lender. The entire process takes just under 5 minutes in total. The process is thus extremely streamlined – allowing customers to receive their loans in around 24 hours. For smaller loans, there is often the opportunity to receive the fund within just 15 minutes or an hour.”
The startup aims to target the 12 million customers that use payday loans in the US every year, many of whom are habitual borrowers, taking out 3-6 loans per year.
In the US, payday loans and short-term lending are both legal at state level, not federal. 37 states currently offer this type of lending including California and Texas. At present, it is prohibited in 13 states, including New York and Massachusetts.
It is worth noting that Capital Bean’s service is free to customers, and their soft-search method does not leave any footprint in a potential customer’s credit history.
“This is a big benefit,” explains Allan. “For a number of the 12 million customers who have bad credit, they might be going around the houses and applying on site after site to try get a loan approval. Not only is this time consuming, but it is also hammering their credit score with all these additional searches.”
“In addition, with thousands and thousands of payday stores across the US, there is a slightly stigma of going to one of these stores and also the inconvenience if you need funds quickly, or if you would prefer not to mix due to the pandemic. Hence, we are delighted to offer a fully online experience.”
“We are not just here to serve the bad credit community, we work with over 50 US lenders, include banks and national lenders, so even if you have good credit and want to borrow large sums, we can help you get very accessible rates.”
Capital Bean considers all credit histories, incomes and backgrounds. For instance, alternative products may be offered to customers applying for loans with poor credit histories. This is particularly applicable in instances whereby the customer requires an asset to be put up as collateral.