Best Startup
Pheabs is a US-based loans connections service, operating online. The service is helping a range of different customers access the finance they need.
The company’s founder, Dan Kettle, holds more than 10 years’ experience in consumer finance, both in the UK and the US. Kettle comments that:
“I set up Pheabs in 2018 and the name came from the Friend’s character, Phoebe, and it had a nice ring to it!”
“A lot of lenders have short and snazzy names, such as Wonga, Zopa, and Amigo.”
“After spending years working in the UK’s short-term lending market, there were a lot of exciting opportunities in the US. Firstly, most of the country’s lenders were based in high street stores, in fact, there are over 28,000 payday stores in the US – and there was little real innovation online.”
With Pheabs, customers have the option to borrow from $100 to $35,000, this online service connecting them with the lender most likely to approve their loan. This approval is assessed on a variety of different factors around the prospective borrower’s situation, and can include the following:
- The amount they’re looking to borrow.
- How long they want to borrow the loan for.
- Their income.
- Their credit status.
This service is available for people with a range of different backgrounds and credit histories. When prospective borrowers hold a bad/poor credit background, they might find that they’re directed to more security-based products – i.e., loans requesting additional collateral, security, or higher rates. These measures are used to help overcome the increased risk of default.
“Pheabs is very technology-driven.” Kettle claims “Customers can submit a loan request online in less than 5 minutes and get an instant decision from a lender who is truly looking to fund their loan. With this process, customers should receive a loan in 24 hours, but some have been able to get loans within 15 minutes or 1 hour.”
Payday and short-term lending is currently legal in the US, however, this is only legal at the state level. This means that these forms of lending are only available in certain states, including California and Texas, and banned in others, including New York and Massachuttes.
Kettle further comments: “Of course, people have been able to apply for loans online in the US for years, but the quality of the customer journey and ability to find the right lender was several years behind that of the UK, probably because the UK is significantly more regulated and competitive, so UK companies have had to up their game and use different marketing, loan alternatives, and technology.”
“Customers can have peace of mind knowing that they will not be charged any fees for using Pheabs and there will not be any impact to their credit rating.”
