How they describe themselves: LendStreet is a social lending site that helps distressed consumers and small businesses (“Debtors”) proactively consolidate, restructure and refinance their debt into a low interest loan while enabling retail investors (“Lenders”) to come together and buy the debt from the banks at a discount.
How they describe their product/innovation: LendStreet is a social lending platform that combines aspects of credit counseling and debt buying with peer-to-peer lending to help distressed Debtors refinance existing debt into a lower interest loan while providing better returns for Lenders. Borrowers on our site do not receive cash – instead, the money invested by the Lenders goes to pay the existing creditors, at an agreed upon discount. The borrowers get a clear path out of debt with tools and incentives to better manage their finances, retail investors get access to buy debt directly from the banks by investing as little as $25 in a loan, and banks get to help their distressed clients recover financially without tying up capital. This structure lowers the total cost for borrowers, reduces the risks and provides an appropriate return for Lenders.
Bus. Dev., Sales & Press: R. Jerry Nemorin, Founder & CEO, firstname.lastname@example.org, 646-470-6343