Going Like Sixty
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Chief Trend Hunter, Jeremy Gutsche has identified microlending as one of the most significant world trends. Richard Branson has founded Virgin Money to facilitate such lending. The firm will formalize lending among family and friends - a major source for startup money. Since these relationships can be stressful, Branson hopes to uncomplicate such business arrangements. He’s offering to match business loans made by family/friends after good credit has been established.
 Earlier this year Branson bought Circle Lending, a Waltham, Mass., company founded six years ago by former management consultant Asheesh Advani, and christened it Virgin Money. The firm formalizes lending relationships among friends and family.
Rather than lend money for mortgages, student loans, and small businesses directly, Virgin Money is a third-party broker, or "marriage counselor," that manages repayment plans among friends and family members - long the major source of funding for startups.
These relationships can get emotionally complicated, and Branson believes Virgin Money can mitigate any awkwardness by handling the payments; consequently default rates decrease to 5% from 14%, claims Advani, who is staying on as CEO.
(money.cnn)References: money.cnn Filed In: |
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