Online lender Vouch Financial is shutting down amid a tightening fintech funding climate, according to CNBC, which cites sources at The Wall Street Journal. The report says the small company had raised about $9 million before its collapse.
Vouch Financial uses friends and family sponsors to help borrowers qualify for larger loans and lower interest rates. After the San Francisco lender leaves beta, Scripps News profiles the service and describes its credit and eligibility rules.
Vouch Financial exits pilot testing with a lending model that asks borrowers to recruit verified friends and family to pledge enforceable amounts, strengthening loan terms. The report also covers the San Francisco start-up’s lending range, regulatory chartering, and venture backing.
Apr 2015 · The New York Times (Bits blog)News article
Vouch Financial's beta-stage service asks borrowers' contacts to complete surveys endorsing their financial responsibility, aiming to improve loan terms in the alternative lending market. The company has also newly disclosed seed funding.
