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Pheabs - A Startup Profile

Pheabs - A Startup Profile
The Siliconreview
15 April, 2021

Pheabs is a connection service for customers looking for loans across the US. Using credit scoring and data analysis, Pheabs is able to match individuals with the lender most likely to accept their application and offer the best rates - across personal loans, auto loans, credit cards and credit unions.

Customers can visit Pheabs and apply online to borrow between $100 and $35,000 and they are connected to the lender who is most likely to approve their loan based on determining factors including the loan amount, duration, the customer’s lending profile, affordability, location, income and credit status.

The company was founded by Dan Kettle, who has over 10 years in the consumer finance industry across the US and the UK.

“I set up Pheabs in 2018 and the name came from the character Phoebe from the sitcom Friends. They regularly refer to her as Pheabs and I thought it had a nice ring to it!” explains Kettle. “A lot of lenders have short and snazzy names, such as Wonga, Zopa, and Amigo.”

“After spending years working in the UK’s short-term lending market, there were a lot of exciting opportunities in the US. For starters, most of the country’s lenders are based in high street stores, (around 28,000) and this was a barrier for some. You would have to find one, park your car, wait in line and wait for a decision - and there is also the stigma of going to one of these places. There was a real opportunity for some innovation online.”

“Of course, people have been able to apply for loans online in the US for years, but the quality of the customer journey and ability to find the right lender is several years behind that of the UK, probably because the UK is significantly more regulated and competitive, so UK companies have had to up their game and use different marketing, loans alternatives, and technology to penetrate the market.”

“Pheabs is very technology-focused and data-driven. Customers can submit a loan request online in less than 5 minutes and get an instant decision from a lender who is truly looking to fund their loan. The lender has the capacity, they want that kind of customer and will offer funds today. With this process, customers should receive a loan in less than an hour, or at least the next business day.

“Customers can have peace of mind knowing that they will not be charged any fees for using Pheabs and there will not be any impact to their credit rating. And you should get a better decision and save time, rather than going to each and every individual lender one-by-one.”

Loans via Pheabs are available to people of all credit histories and backgrounds. However, those with poor or bad credit backgrounds may be veered towards products that require security, additionalcollateral, or slightly higher rates to overcome the added risk of default.

Short term and payday lending is legal in the United States, but only at the state level, hence is available in 37 states including those looking for payday loans in California and Texas but similar products are banned in 13, including Massachusetts and New York.