CreditSpring, an interesting twist on consumer credit, is crowdfunding on Seedrs now and has now topped its initial £1.5 million goal.
CreditSpring is a membership loan platform. You join for a fee and then get access to credit during the year, when you need it. Think about that for a second.
According to CreditSpring:
“Our goal is to empower hardworking people to transform their lives through access to responsible credit. 40% of the UK population has less than £100 in savings, exposing them to risky and expensive forms of credit which can spiral out of control. Creditspring aims to break this cycle.”
Kind of like Netflix…
CreditSpring has two levels of membership.
For a £6/month fee, you may tap into two £250 loans a year. For an £8 fee, you may access two £500 loans when you need the money.
CreditSpring calls their service a “safety net” of sorts while recognizing the fee may end up being a higher APR than you can get elsewhere. Of course, if you get hit with an overdraft, the monthly fee starts to look better.
CreditSpring only makes money off of the fee. They just need to continue to grow subscribers.
Investors in the Seedrs offering receive equity in the company at a pre-money valuation of £9.7 million. So far, 271 investors have backed CreditSpring.
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