rebirthfinancial

390,000 US$ P2P Loan Funded via Rebirth Financial

wiseclerk 2 Comments

Rebirth Financial announced that it facilitated a 390,000 US$ loan via it’s social lending platform to NOLA Brewing Company. You can read more about NOLA Brewing company here.

The press release says: “In the case of NOLA Brewing, Rebirth Financial matched the loan to ASI Federal Credit Union in less than one week. ‘Rebirth’s process was quick, easy, and helped us raise the necessary funding to can our beer,’ said Dylan Lintern, Vice President of NOLA Brewing Company.“.

If I read this right and the loan was funded by just one institutional lender you can hardly file this under Rebirth Financial’s claim “Rebirth Financial Inc. debuted America’s first person-to-business lending platform … in February. It allows people to lend small sums of money to small businesses in their community.“. I wrote to the founder Chonchol Gupta who replied: “This loan started as a p2p loan but was fully funded by the credit union, who would not have seen the loan or perhaps given thought to it, if it was not for the groundswell of community interest. Banks see it as great PR to fund loans important to the community.“

Rebirth Financial – P2C Lending to Businesses in Louisiana

wiseclerk 1 Comment

Chonchol Gupta and Xavier Cabo, two graduates of the Tulane University’s A.B. Freeman School of Business, founded RebirthFinancial.com to enable small businesses from Louisiana easier access to loans.

Interested businesses are screened and once approved can apply for loans between 5,000 and 100,000 US$ with loan terms ranging from 5,000 to 100,000. There is only a small fee of 100 US$. Apart from that fee, the business model of Rebirth Financial bases on earning from the interest rate spread.

Any US resident can lend. Minimum amount is 50 US$. Rebirth Financial is not subject to SEC registration.

It will be very interesting to see how the first p2c lending service in the US develops. Funding Circle in the UK had a good start. Rebirth Financial has already announced that Louisiana is only the start and that they plan to expand nationwide.

Peter Renton over at SocialLending.net has an interesting long article reviewing the launch of RebirthFinancial.com, too.