LendUp is a payday loan startup that was accelerated at Y Combinator. LendUp has raised $14 million in a new round of funding from Google Ventures and QED.
LendUp has raised a total of $18 million so far. LendUp wants to make the loan experience for Americans fair and transparent rather than suffering from the high interest rates offered by lenders and banks.
LendUp wants to help people with short-term financial needs borrow money without hidden fees and high interest rates. LendUp is a direct lender and has a way to use small-dollar loans as a way for consumers to build credit.
People that have poor credit or no credit can apply and receive small-dollar, short-term loans. For example, they could receive up to $250 for up to 30 days. LendUp will depend on data to approve people with good credit instantly. LendUp can deposit money into your account in as little as 15 minutes.
LendUp has been focused on the state of California so far to make sure that they are compliant with the state’s rules and recently expanded into Louisiana and Missouri. LendUp has plans to expand nationwide with this new round of funding.
LendUp currently has debt commitments for another $25 million of debt for their loan portfolio. Some of LendUp’s competition includes BillFloat, Kabbage, On Deck, and Think Finance.