Possible Finance — Our Investment in Financial Wellness

Rebecca Lynn
Jun 6, 2019 · 6 min read
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Founding Team of Possible Finance: Prasad Mahendra, Tyler Conant, Tony Huang
  1. Possible Finance improves credit ratings. Because Possible Finance has an installment product, they are able to report payment information back to all three primary credit bureaus (Equifax, Experian and TransUnion). This is important because when customers pay back the loan, they build their credit history. They are then able to get access to even better financial products and interest rates in the future. In contrast, single payment products cannot be reported to bureaus and do not improve credit history.
  2. Possible Finance does not pull a credit bureau to underwrite the loan. This is important because pulling credit bureaus negatively affects a consumer’s credit score. Instead, Possible Finance uses machine learning and bank data to decide who to loan money to and how much. By using this approach, Possible can loan to individuals who have no credit history or limited credit history and can help them build their credit score. Again, this is good because it helps people get access to even lower rates in the future. In contrast, most single payment products pull credit reports.
  3. Possible Finance meets ALL state by state regulatory lending requirements and interest rate caps. Unlike many other companies in the short-term lending space, Possible Finance registers and gains approval to operate in every state they are doing business in. In contrast, there are some companies that provide short-term loans, but claim that they are a tip or a service fee because this allows them to get around state licenses and rate limits. Possible Finance works collaboratively with regulators. In fact, Possible Finance recently collaborated with the Pew Charitable Trust to pen a comment letter to the CFPB in support of 2017 rules to reform short term lending. The letter urges the CFPB to keep in place the 2017 rules which greatly increased consumer protection against harmful practices in short-term lending.
  4. Possible Finance is incredibly user friendly. Consumers can borrow up to $500, without a credit check, and have access to funds within 5 minutes. Additionally, Possible Finance will allow borrowers to delay payments, without hurting their credit score, up to the maximum time period allowed by the credit bureaus, with no fee or penalty.
  1. https://s3.amazonaws.com/cfsi-innovation-files-2018/wp-content/uploads/2017/04/27001546/2017-Market-Size-Report_FINAL_4.pdf
  2. https://www.consumerfinance.gov/about-us/newsroom/cfpb-unveils-prototypes-know-you-owe-overdraft-disclosure-designed-make-costs-and-risks-easier-understand/
  3. https://files.consumerfinance.gov/f/documents/201708_cfpb_data-point_frequent-overdrafters.pdf
  4. https://www.creditkarma.com/advice/i/what-is-credit-card-apr/

Canvas Ventures

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Rebecca Lynn

Written by

Founder and General Partner@CanvasVC. Investor in @LendingClub, @Doximity, @FutureAdvisor, @Check, @VidaHealth, @Casetext, @Gabi, @Owl, @Luminar, @FigureEight

Canvas Ventures

Canvas Ventures is a venture capital firm that focuses on Series A and Series B investments with focuses in fintech, marketplaces, healthtech & enterprise.

Rebecca Lynn

Written by

Founder and General Partner@CanvasVC. Investor in @LendingClub, @Doximity, @FutureAdvisor, @Check, @VidaHealth, @Casetext, @Gabi, @Owl, @Luminar, @FigureEight

Canvas Ventures

Canvas Ventures is a venture capital firm that focuses on Series A and Series B investments with focuses in fintech, marketplaces, healthtech & enterprise.

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