WASHINGTON, Aug. 11, 2015 /PRNewswire/ -- StreetShares today announced that it has become a signatory to the Small Business Borrower's Bill of Rights, a public commitment to ensure small business owners have access to funding that is both transparent and fair. By signing, StreetShares joins a coalition of industry leaders committed to eliminating predatory lending to small businesses.
The Small Business Borrower's Bill of Rights (SBBOR) is composed of lenders, credit marketplaces, and nonprofits—including Accion, Funding Circle, Lending Club, Fundera, Opportunity Fund and others—who have become increasingly concerned by the high cost, lack of transparency and debt stacking that have become common among certain online lenders. As lenders provide faster and easier ways for businesses to borrow, the SBBOR works to ensure that lending processes put the rights of borrowers first. The guiding principles of the SBBOR are:
- The right to transparent pricing and terms
- The right to non-abusive products
- The right to responsible underwriting
- The right to fair treatment from brokers
- The right to inclusive credit access
- The right to fair collection practices
"Every small business should have the right to transparent, fairly-priced funding options," StreetShares CEO Mark L. Rockefeller (@MarkRockefeller) said. "StreetShares has built our marketplace around these principles, and we challenge other lenders to commit to this Bill of Rights as well."
StreetShares launched last year with a unique auction pricing method, in which competition among lenders and investors drives down the cost of a business loan. There is no cost to apply to post a loan request on StreetShares, no cost to run an auction to fund a loan, and no prepayment penalty for borrowers. StreetShares also co-invests in every loan.
StreetShares is dedicated to funding the next generation of American small businesses through its auction-based funding model where qualified retail and institutional investors bid to back portions of small business and veteran business loan requests. The StreetShares marketplace combines the lowest bids into a single loan for the business, a technique designed to decrease the borrower's cost to the lowest-possible rate. StreetShares funding is open to any qualified small business owner and the company is based outside of Washington, D.C.
Laura Walton, Media
SOURCE StreetShares, Inc.