Possible Finance has access to another slice of money to boost the growth of its mobile-only lending program.
The Seattle-based startup just landed a $ 30 million credit facility with Park Cities Asset Management, an alternative credit manager based in Dallas, Texas.
This follows a $ 4.3 million investment the company raised in February from various angel investors and venture capitalists.
Possible Finance CEO Tony Huang said he was drawn to Park Cities because of his “unique understanding of the Texas consumer loan market and its regulatory challenges.” The startup was launched today in Texas, its fifth US state.
Possible Finance offers loans of up to $ 500 and is similar to payday lenders, but with a few differences. Borrowers have more time to repay 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.
Using the Possible Finance app, people can apply for loans 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 to make credit risk decisions rather than relying on FICO credit scores.
Since its launch in April 2018, the company has granted 24,000 loans, up from 13,000 two months ago, and has more than 100,000 users on its waiting list. Its revenue grew 50% month over month and recently hit a milestone of $ 1 million in annual revenue. Huang said in February that he saw a “clear path” to profitability.
In addition to Texas, Possible Finance also serves clients in Washington, California, Utah, and Idaho. It will launch in Ohio later this month. The company has ten employees.
“We’re really proud of the fact that 40% of new customers each month come from organic non-paid channels,” Huang said in an email. “By turning a small loan into a credit opportunity, we are helping ordinary Americans improve their credit scores and achieve long-term financial well-being. “
Huang and his co-founders – Prasad Mahendra, vice president of engineering, and Tyler Conant, chief technology officer – previously worked together at Axon, the leading manufacturer of non-lethal tasers and police software and supplies. including in-car and body cameras policy. This experience instilled in them a passion for the development of technologies in the service of social good. As part of his role as Product Manager at Axon, Huang has accompanied police across the country, giving them insight into inner city areas and reinforcing their commitment to helping underserved communities.
Huang was nominated last year in the Young Entrepreneur of the Year category at the GeekWire Awards.