Dan Cobley, a former Googler and CEO of Brightbridge Ventures, was chatting up his newest venture last week, SalaryFinance. The company that seeks to provide a credit vehicle that companies can offer to employees to refinance debt such as credit cards. Because the employer knows the individuals taking out a loan are good for it (since it gets deducted from their paystub), Salary Finance may offer a more competitive interest rate to borrowers.
Talking to CNBC, Cobley believes this company may become a fabled Unicorn at some point in the future. Of course an enterprising employer could probably do this on their own but they would not be able to capture the scale of a provider.
Cobley states that an unsecured consumer loan for less than £5000 will cost a borrower a 20 to 25% interest rate. Pretty steep. If you can move that number to where you are paying 7.5% that is “compelling”.
SalaryFinance makes a small margin on the loans offered to customers. According to an earlier report, it takes only 30 minutes to load a new organization onto its platform.
Watch the video below.
