Australians looking to borrow off friends or family are now able to have these agreements facilitated. Credi, the Australian fintech company, facilitates loans taken out from between family and friends in order to protect relationships and to avoid future disagreements. According to Credi’s website, the company currently has more than $10 million worth of loans in their system. Tim Dean, CEO of Credi, described Credi’s purpose as, “the company is looking to save relationships from the ‘strain of financial dealings’ by turning these informal loan agreements into ones that are credible and manageable.”
In the past many people didn’t often see the benefit behind formalizing agreements amongst family and friends even through these agreements often lead to misunderstandings down the track. With Credi however, two parties can negotiate the terms of the loan, set up, agree and sign it all electronically within minutes. This then becomes a legally binding record of agreements and repayments and reminders can be set to update the borrower and lenders when repayments are due.
In the past many people didn’t often see the benefit behind formalizing agreements amongst family and friends. With Credi however, two parties can negotiate, set up, agree and sign it all electronically within minutes.
RFi Group data from March 2017 shows that a loan from a friend or family is the third most commonly considered alternative among borrowers who have taken out a personal, which suggests the use of Credi’s services may increase over time.
Source: RFi Group Australian Consumer Lending Council, Mar-17