Possible Finance, a FinTech that claims to offer life-changing financial services for underserved consumers, has bagged $20m in equity.
The company has also hired key executives and launched new credit card and cash advance products – Possible Card and Possible Cash.
This capital injection was backed by Union Square Ventures, Canvas Ventures, Unlock Venture Partners and Euclidean Capital, a first-time backer.
Possible Finance’s flagship product Possible Loan is a short-term, small-dollar instalment loan designed to help American adults that struggle to access affordable credit and fall victim to predatory lending practices, which Possible Finance states is one in three.
Its lending service is available in 21 states and has distributed over 1.65 million loans since 2019.
Its new Possible Card is not a traditional credit card with interest charges or penalty fees. Instead, it is built to protect members from mounting debt and improve their long-term financial habits. The card is allegedly the only unsecured credit card in the market with no interest or late fees and has a flat monthly fee.
No credit score check is needed for the card, instead the company uses a cash-flow credit risk technology to assess the customer.
Possible Cash is stylised as the first and only cash advance offering that gives customers the chance to qualify for an unsecured credit card. Customers that build successful track records of repayment on Possible Cash will be automatically pre-approved for a Possible Card.
Possible Finance co-founder and CEO Tony Huang said, “We started Possible to help people break the debt cycle caused by predatory financial products while also building up their credit history.
“When we realized many of our customers escaped the payday debt cycle only to jump right into a similar trap caused by credit card debt, we knew Possible could offer a better solution. Existing credit card companies work just like payday lenders – they profit by intentionally lending to vulnerable consumers knowing they won’t be able to make timely payments. To reimagine the credit card, our team applied the same principles, data and technologies we built for the Possible Loan.
“I am excited to bring the Possible Card to underserved consumers who desperately need a better option.”
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