LendUp has secured $14 million from Google Ventures and QED Investors to help consumers with little to no credit gain access to short-term capital. This latest round brings LendUp’s total funding to more than $18 million.
LendUp provides an alternative to the kind of high-interest loans which are often the only recourse for those in underbanked communities. The company provides loans of up to $1,000 annually with rates as low as 29% APR. Additionally, the loans come free of rollover charges and have no hidden fees.
The company’s technology includes algorithms that help target those lenders who are most likely to repay their loans. This allows LendUp not only to provide loans to those unable to borrow from traditional sources, but also to do so at a reasonable cost to the borrower and reasonable risk to the lender.
More than just a provider of affordable short-term financing, LendUp encourages socially responsible lending through its LendUp Ladder program. The LendUp Ladder program is geared toward helping borrowers build their credit through a combination of small dollar/short-term loans (typically up to $250 for up to 30 days) and educational resources on managing credit.