How our organizations can better help people navigate the financial ups and downs of work as it becomes more precarious is a hot topic within the economic justice world these days. When the majority of Americans don’t have $500 in savings, we know that it is very hard to deal with routine “emergencies”–like an ER visit, an unexpected car repair, or a broken hot water heater.
Most of us are familiar with peer-to-peer lending programs like Kiva, which allow entrepreneurs and individuals around the world to borrow small-ish amounts of money, to fund business expansion or home improvements, without going through established banks. Lenders are partially repaid on a regular basis, until the entire loan is paid off–which can help both solve an immediate financial need for the borrower, and also establish a credit history for the borrower.
A new platform, Lenderly, developed a tool to refine this kind of peer-to-peer lending within existing networks. The site originally launched with faith communities in the US, and are now expanding their back end to be available for unions or worker centers who want to help facilitate loans between their membership.
Potential borrowers set up a specific funding request for between $300 to $5,000, and can specify the purpose of the loan with options like “take a class” or “pay medical bills.” The site acts as a guarantor of the loan–and will run a credit check on borrowers before making the loan request “live.” Borrowers also get to determine the length of time they will need to pay back the loan, up to two years.
Lenderly runs both the back end administration, adding their functionality to an existing website. It also helps borrowers get the word out about their loan request, by publicizing it to other people within that organization’s community.
Crowd-funding alone won’t fix income inequality, of course–but it might make it more possible for people to survive until we can build a more fair society.
Interested? Head over to lenderly.co and hit the “contact us” button–and let them know you heard about it on HtU.