Lenmo, an alternative lender that is a marketplace for investors to fund loans on an app, is raising up to $ 3 million on SeedInvest.
Lenmo is a low dollar lender who will provide credit when banks decline, accepting subprime borrowers – ostensibly at a better rate than some other lenders.
For borrowers, you choose the amount and duration and several lenders compete for your loan. Investors (lenders) include financial institutions, loan companies, and individual lenders. Although still small, Lenmo reports to date having generated more than $ 1.2 million in loans for more than 5,000 people. By connecting with friends and family through Facebook, a borrower can easily access their personal network to borrow money from famous people.
Currently, Lenmo loans are peer to peer type which means you cannot invest in fractions of loans. You can choose different levels of risk / reward.
It is worth noting that Lenmo says that Lenmo Enterprise, a solution designed to invest in the small loan market, already has 45 business registrations and 75 more ongoing.
Lenmo is another example of the ongoing disintegration of the traditional banking market. By removing the middleman, Lenmo can create loans in a more streamlined process at a lower rate while investors can participate directly in the asset class.
Lenmo makes money by charging borrowers a fee of 1% on the principal of the loan or a minimum of $ 3, regardless of the interest rate and repayment period.
Lenmo offers a Reg CF-Reg D side-by-side offer on SeedInvest. The “Series Seed” is valued at $ 10 million before the purchase of preferred shares. So far $ 102,501 has been raised under Reg D and $ 2,501 under Reg CF. The minimum goal is an increase of $ 700,000. A year ago, Lenmo made a funding round of $ 430,000 for a valuation of $ 8 million.
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