HelpPays also has a crowdfunding marketplace where borrowers can post small $50 loan applications to establish their credit score. Borrowers are granted larger loans after successful repayment of the loan. Micro-lenders receive high returns for loan risk. However, donation protection accompanies every loan, giving lenders the advantage of writing off potential micro-losses as qualified donations instead. Although defaults do occur, mutually beneficial connections are more likely to be formed with open discussions between borrowers and lenders in a true peer-to-peer form.
At payday lenders, if a consumer cannot repay their payday loan, the loan is extended or “rolled over” at a compound interest rate with accumulating finance charges. According to CFPB, 80% of payday loans are extended, plunging borrowers into vicious cycles of debt. With HelpPays, borrowers only repay the interest they have requested and loan extensions have no penalties.
“We are building a HelpPays community. For every benefit we give to a lender, we look for a way to extend it to a borrower,” said CTO and co-founder Emmanuel Aubrey.
198 million Americans living paycheck to paycheck can’t afford a $1,000 emergency like car accident, sudden illness or pandemic. 26 million Americans are considered invisible credit, meaning they don’t have the credit history or documentation needed to access traditional financial services. So it’s no mystery why 26 million people (more than 10% of all adults) depend on loans from family and friends, according to the Census Bureau’s Household Pulse Finance Survey. HelpPays was designed to fill these funding gaps and be an alternative source of capital for those who need it most.
“We are making a big bet that we know to be true. Americans care and are ready to help other honest, hard-working Americans. HelpPays prides itself on delivering meaningful returns to our lenders while providing our borrowers with dignity and trust”, said CEO and co-founder Shamari Benton.
The HelpCountry allows anyone to lend or borrow micro-loans for up to 9 months to build credit. Grant protection is provided on all loans. We democratize access to credit to promote financial inclusion. We allow direct relationships like family and friends to engage outside of our market with Direct Loans. HelpPays provides the support needed to facilitate lending between borrowers and lenders.
CEO & Co-founder
Disclaimer: Our content is intended for use and should be used for informational purposes only. It is very important to do your own analysis before entering into an agreement based on your personal situation.
SOURCE HelpPays, Inc.