Last week saw our first new entrant in the US peer to peer lending market for quite some time. Rebirth Financial is the name of this new company and they are targeting a niche within p2p lending: business loans. But first some background.
While co-founders Choncol Gupta and Xavier Cabo were MBA students at Tulane during the financial crisis they noticed how difficult it was for Louisiana businesses to get access to capital. Many companies were just getting back on their feet after Hurricane Katrina and they wanted to grow but suddenly found themselves with no access to capital. Rather than just dismissing this problem, they decided to do something about it. Thus, Rebirth Financial was born. Rebirth Financial focuses on providing funding for small businesses but rather than partner with a bank or other financial institution they decided to go a different route. They wanted to be the first peer to peer lender in this country focused purely on small business.
I spoke with CEO Chonchol Gupta earlier this week who is understandably very excited about their launch. “While Lending Club and Prosper both provide loans for businesses, these are really personal loans, and the investor has little or no information about the business,” said Gupta. “We want to provide individual investors with detailed information about these businesses so they can make informed decisions about whether to invest or not.” [Read more…]