Top 7 Best Microfinance Companies In USA

Microfinance companies in the United States are organizations that provide funding and other financial services to small businesses, entrepreneurs, and individuals who would not otherwise have access to capital. In 2023, microfinance companies in the US are expected to play a bigger role in helping people start and finance businesses, particularly those in underserved communities.

Microfinance companies offer various types of financing such as direct loans, lines of credit, and savings accounts. They also often provide consulting services such as technical and business advice and help develop programs to promote economic development in local communities.

1. LendingClub

LendingClub is a peer-to-peer lending company that began in 2007. It connects borrowers and investors to facilitate financing for individuals, businesses, and other organizations. The company acts as a financial intermediary between lenders and borrowers by offering online loan products such as personal loans and credit lines.

LendingClub’s services are available nationwide in the United States, and it has also expanded its services to several countries outside of the U.S. The company has funded over $50 billion in loans and proudly holds an A+ rating from the Better Business Bureau.

2. Prosper Marketplace

Prosper Marketplace is a peer-to-peer lending platform that connects borrowers and investors. Founded in 2005, the company provides individuals and institutions with a secure method for borrowing and investing money online. Investors can access returns as high as 5.99%, while borrowers can get access to low-interest personal loans, up to $40,000.

The company has a strong focus on responsible lending and makes sure that all of its borrowers can repay their loans. It assesses the creditworthiness of potential borrowers by looking at their credit score and FICO score. It also reviews the financial history of applicants and ensures that the borrower has sufficient income to cover the loan repayment.

3. Kiva

Kiva is a non-profit organization that provides loan services to people in need all around the world. Founded in 2005, Kiva offers loans of up to $25,000 to individuals and businesses that don’t have access to traditional banking services.

Through its online platform, Kiva connects social entrepreneurs and small business owners with potential lenders from over 80 countries. As of 2020, Kiva has facilitated more than $1.6 billion in loans to over 2.5 million borrowers.

4. PayActiv

PayActiv is a financial technology company that provides an innovative platform for working families. The platform allows users to access their earned income before payday, access cash-back rewards, budgeting tools, and other financial wellness benefits. PayActiv’s mission is to provide economic justice to working-class individuals by helping them achieve financial freedom.

PayActiv’s platform is designed to give users control over their finances. Users can set up customized financial goals and easily track their progress through the platform. PayActiv also offers a suite of financial services such as paycheck advance, payday loans, debit card access, bill pay, and financial education. PayActiv also partners with employers to provide employees with access to the platform.

5. Oportun

Oportun is a financial technology company that provides accessible, affordable, and responsible financial services to low-income communities. The company was founded in 2005 with the mission of empowering people to move out of poverty by providing access to capital and resources that help build credit, create savings, and ultimately lead to financial stability.

One of the most important products Oportun offers is its unsecured installment loan designed to help customers cover unexpected expenses or purchase new items for their home or business. Oportun’s loans are designed to be flexible and affordable, and the company uses advanced analytics and machine learning techniques to make sure loans are underwritten responsibly.

6. Self Lender

Self Lender is a financial technology company that provides consumers with access to credit-building products. Founded in 2013, Self Lender helps people build their credit scores and improve their financial future. The company offers personal loans and credit-builder accounts, which are FDIC-insured savings accounts with a set term.

With these accounts, users can make monthly deposits toward their loan goals and build their credit history. Each time the user pays back the loan, their credit score improves. The lender also offers credit education resources and tracking tools for users to monitor their progress.

7. Upstart

Upstart is a technology company that specializes in using data to help people get better outcomes in their lives. Through its innovative platform, Upstart offers personalized financial products, such as personal loans, credit cards, and more.

These products are tailored to the individual’s unique needs, making them easier and more convenient to use. In addition to providing financial services, Upstart also provides educational materials, budgeting tools, and other resources to help people make informed decisions.

Read also: Top 7 Best Asbestos law Firms in Canada