Times may be tough, but online financial services company Pertuity Direct
is alive, expanding and rolling out its latest product.
Social lending has evolved and grown dramatically in the last two years, explains Kim Muhota, chief executive and founder. Tighter restrictions in the lending market have created a unique opportunity for Pertuity, who matches good borrowers with low rates.
This month Pertuity launched its next generation social finance platform, a process that eliminates the cost of a traditional bank as middleman. Pertuity does all the credit underwriting. Rates on a fixed rate loan range from 8.9 to 17.9 percent.
“When you really focus on what’s driving consumer nervousness, it’s the worry that banks aren’t going to lend,” explains Muhota.
“Our model better positions us to serve the larger marketplace. The automated, seamless process feels very familiar to consumers. This is for people who are comfortable transacting online, who don’t need the handholding.”
Financial analysts love the product too, he adds. “Many look at our model as the next evolution of social lending.”
Pertuity makes investments through the National Retail Fund, a mutual fund that matches lenders with a diversified group of approved, credit worthy borrowers. Unlike other models, the loans are a three-year fixed rate. They can be used for everything—debt consolidation, small businesses, school tuition or home improvements.
Pertuity makes its money through fees charged on the money transacted back and forth. The process is private; there’s no public posting of personal credit information, no bidding, says Muhota.
In addition to its corporate office in downtown Pittsburgh, Pertuity has opened an office in Vienna, VA. An Innovation Works
company, the firm spent the last year hiring a management team and has 12 total employees.
To read about Pertuity's Dare to Compare in Pop City, click here
To receive Pop City free each week, click here
Writer: Deb Smit
Source: Kim Muhota, Pertuity Direct Image courtesy Pertuity Direct