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Techstars Seattle grad Fig Loans raises $2.6M for pay day loan alternative

Techstars Seattle grad Fig Loans raises $2.6M for pay day loan alternative

Fig Loans has just finished a $2.6 million seed round for the solution which provides a loan alternative that is payday.

The brand new York company that is city-based the financing from Access Ventures, Arrow Venture Partners, Tubergen Ventures, and Village Capital. Bizible co-founder Aaron Bird; Remitly co-founder Shivaas Gulati; and Wharton teacher Peter Fader additionally spent.

Started graduate for the Techstars Seattle accelerator, Fig Loans provides “installment loans” for low-income People in america. It gives a lesser APR and less monthly obligations than what’s offered by conventional payday advances. The theory would be to assist individuals re-enter the credit that is traditional.

Fig Loans is piloting its item in Texas aided by the United Method, Catholic Charities, and Memorial Assistance Ministries. Clients utilize Fig Loans to greatly help pay money for parking seats; automobile enrollment; a work-related motorists permit; medical health insurance deductibles; etc.

Fig Loans CEO Jeffrey Zhu.

Fig Loans generates profit by simply making referrals to old-fashioned credit partners like neighborhood credit unions or Capital One. Income through the loans are designed to protect the price of running the organization.

“This business design produces our objective alignment,” said Fig Loans CEO Jeff Zhou. “To put it differently, the bigger the credit history we assist our clients get, the more valuable our clients are to a conventional credit partner.”