Sam Lynch
Capital Bean, a US-based financial startup has launched their latest loan connection service, connecting customers with loan funding in just 5 minutes.
Customers make a request, and are paired up with their most compatible lender within minutes. The lender chosen will be the most likely to fund each specific customer’s loan applications, which can be anywhere from $100 to $35,000.
The service was discovered after its founders noticed a gap in the short-term lending market. Co-founder Richard Allan says, “Local payday stores operating online and on the high street come with their own risks, and don’t necessarily give you the best deal – and there are a lot of rules in place to protect against this. Our service is much safer, as well as being a lot faster.”
The process is so efficient because of Capital Bean’s highly tech-driven nature. The entire pairing process takes under 5 minutes, allowing customers to receive their loans within 24 hours. The smaller loans that customers apply for through Capital Bean can go through within 15 minutes, allowing customers to use the money practically immediately.
Capital Bean bases loan approval on loan amounts, the length of the loan, and the customer’s credit history and income details. This avoids people taking on the burden of loans they cannot afford, which would negatively affect their credit history for years to come.
The startup targets the 12 million customers who use payday loans every year in the US. Payday loans and short-term lending are both legal at a state but not federal level. 37 states currently offer this type of lending, including those looking for payday loans in California and Texas.
One of the main benefits of Capital Bean’s service is that it is free for its customers. There is no fee to Capital Bean’s users, and absolutely no footprint on their credit history, due to Capital Bean’s soft-search method.
Allan explains, “Customers with bad credit might be wasting time and energy applying everywhere to try and get a loan approval. This ironically means their credit score takes a further beating.”
In addition, there is some social stigma of going into stores to get a loan, as well as the inconvenience of waiting a long time for these funds to come through. This offline version is also impossible for many housebound individuals, or those who have reduced mobility.
Capital Bean works with over 50 US lenders including banks and national lenders. This means people who want to borrow large sums can get very accessible rates. They consider people of all credit histories, incomes, and backgrounds.
