Note from the Publisher: Marketplace lending advocate and president of Prosper, Ron Suber, sent me the following story overnight. We agree it bears a deeper dive since the firm – Credible – offers an online exchange for funding and refinancing student loans. Now as has been widely reported, the student loan marketplace is GINORMOUS – $1 Trillion plus and counting in the US alone – so any firm that gets involved in this industry and gets their hands wrapped around it bears further review. Obviously Credible is doing just that, and bringing in some heavy hitters to ensure its long-term success.
Credible, which offers an online exchange for student and personal loans, raised $10 million from investors including Ron Suber, the president of Prosper Marketplace Inc., and Regal Funds Management to expand its business of matching borrowers with lenders.
The Series B funding round was led by Regal, and included existing investor Carthona Capital, Credible founder and Chief Executive Officer Stephen Dash said this week in an interview. The firm’s Series A round was for $10 million and much of it is still in the bank, Dash said.
San Francisco-based Credible works with student loans much like Kayak.com does for airline fares, acting as a marketplace for borrowers to compare available interest rates. The closely held firm works with credit bureaus and lenders such as financial-technology startups or banks to provide a personalized rate, Dash said.”
Read Full Article at Bloomberg