Leetchi has already popularized the concept of online kitty in France, to allow friends or family to contribute for the birthday of a loved one. But what about when it comes to lending money? It is to meet this need that Ledge, a Californian start-up, has launched a peer-to-peer loan application.
Concretely, an Internet user in search of funds to create, like a platform of crowdfunding, a campaign to raise money. For this, he details his project and what the money received will be used for. in order to convince his peers. The borrower sets the conditions of the loan himself: the interest rate at which he agrees to repay his creditors, as well as the repayment deadlines which can go up to 6 months.
Monthly installments calculations and payments via the app
Once these elements are filled in, the campaign is sent by email to the contacts chosen by the borrower. They are free to accept or not to lend money under the conditions mentioned. If they are interested, they can submit a loan promise without having to download the application. In the end, the loan is granted to the borrower only if the total amount sought is reached.
If successful, Ledge performs the refund calculations and the refund transactions are made directly from the app through Venmo technology (a company that publishes an electronic wallet).
With this concept, the company is positioned as a platform for crowdfunding loans, like Lending Club or Prêt d’Union, with the difference that campaigns are only open to those invited to participate.