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Avant Credit Sees an Opportunity in Online Lending

Fast, flexible, and friendly, AvantCredit is an online lending startup that provides loans to middle class citizens that banks consider near prime lendees. Its mission is to give affordable personal loans to responsible people, who AvantCredit believes, should not have to settle for expensive short term loans, or numerous wasted hours at a loan store or bank. Instead, AvantCredit offers a completely online process, with an application process that takes 10-15 minutes to complete, with a 24 hour notification guarantee. Unlike other lenders, AvantCredit’s application does not require a costumer’s cart title or house title, or reveal hidden fees upon approval. Rather, customers that AvantCredit approved have money directly depositing into their checking accounts. These loans typically range from $1,000 and $20,000, and their payback periods range from one year to five years. Interest rates on these loans range from 35% to 95%, which is more than the typical lines of credit for banks. These higher rates exists because AvantCredit’s target audience is the client that cannot secure good rates from banks because of average credit status or improper equity needed to borrow against.

AvantCredit exercises support for its clients, offering benefits like late fee forgiveness and the potential to improve credit ratings over time. Additionally, the company offers leniency, allowing some customers that can not make upcoming payments or are likely to default on their loans, to have courtesy due date adjustments that give customers extra time before their next payment. Other customers have the option of calling  the“Payment Planning Team” to converse with planning consultants on setting up paying arrangements that fit the customer’s budget.

The AvantCredit service is available in 16 U.S. States, offering two different types of products based on state residency. One option available in 16 states, including Illinois, is AvantCredit Personal Loan, a standard consumer installment loan that amortizes over time with equal monthly payments, similar to many banks’ models. The other product option, which is available in Kansas (and Louisiana which has both borrowing options)  is AvantCredit Line. This service functions like a credit card and allows customers to access funds from a credit line at any time or place as long as they can connect to the Internet. AvantCredit uses sophisticated analytics to sort relevant data and ensure that customers  are approved or denied in real time, and that they receive the appropriate loan. The company is managed by 90 employees, and has secured over $34 million in venture capital investment in order to increase its clientele, both within the United States and internationally.

Image Credit: AvantCredit

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