Financing possible is on a roll. The Seattle startup that offers small loans is growing rapidly and has more than 150,000 people on its waiting list.
Now the company is adding more fuel to the fire. It just raised a $ 10.5 million round led by Rebecca Lynn, co-founder of Canvas Ventures and an early investor in LendingClub, one of the most valuable fintech startups.
Possible finance CEO Tony Huang told GeekWire that there was “significant investor interest” in this cycle. âWe received several mod sheets in the first few days of active fundraising,â he said.
Using the Possible Finance app, people can apply for loans up to $ 500 without a credit check and receive funds the next day. Possible Finance connects to a customer’s bank account and uses machine learning to analyze financial transaction data and make credit risk decisions rather than relying on FICO credit scores.
Borrowers have more time to repay the money in installments, and repayments are reported to credit agencies, helping people rebuild their credit. Traditional payday loans are structured differently, so these payments do not count towards credit scores, which can trap consumers in an expensive borrowing cycle.
Possible Finance has granted 50,000 loans to date and 25,000 in the last two months alone. It is currently available in Washington, Texas, California, Ohio, Utah, Idaho, with plans for expansion into new states.
âPossible Finance is doing what I thought was impossible,â Lynn said in a statement. “They help people with difficult credit histories improve their financial outlook without being predatory.”
Huang added, “She immediately believed in our approach and we feel really lucky to partner with Rebecca.”
Lynn is ranked among the top investors on the Midas List. Her fintech portfolio includes LendingClub, which went public in 2014, as well as Check, Roofstock and FutureAdvisor, which was acquired in 2015. She was a long-time employee at NextCard, an online credit card company that became public in 2000.
Existing investors Unlock Venture Partners, Columbia Pacific Advisors, Union Bay Partners and Tom Williams also participated in the latest round. Total funding is $ 13.5 million in equity funding. Possible Finance also recently signed a $ 30 million credit facility.
The company has 14 employees and plans to double its workforce by the end of 2019.