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CircleLending

Page history last edited by PBworks 15 years, 8 months ago

 

• About CircleLending, Inc.

CircleLending, Inc. (www.circlelending.com) is a rapidly growing financial services company uniquely serving the needs of the $89 billion interpersonal lending market in the United States. The company provides a full suite of services for managing private loans and mortgages, including loan documentation, payment processing and loan servicing. By simplifying the process of formalizing these transactions, CircleLending has made loans between friends and family members a mass market alternative to costlier forms of credit.

• New York, N.Y. – May 15, 2007 – Virgin USA, Sir Richard Branson's North American investment group, announced today that it has acquired a majority stake in CircleLending, Inc., the innovative financial services company that pioneered the business of managing loans between relatives and friends. Terms of the transaction were not disclosed.

• Virgin USA and CircleLending will work together to rebrand the company and expand financial service products for consumers and small-business owners. Launched in 2001, CircleLending is widely regarded as a trailblazer in the financial services industry for designing unique products that allow individuals to save money and keep wealth in the family by securing affordable loans from relatives and friends. CircleLending has helped first-time homebuyers, entrepreneurs, students and other individuals access credit at favorable terms.

• “Our investment in CircleLending is consistent with Virgin's focus on developing fresh approaches to consumer issues and challenging the status quo,” said Frances Farrow, CEO of Virgin USA. “Financial consumers are increasingly self-directed, empowered and seeking the kinds of innovative alternatives offered by CircleLending. We're delighted that our investment will form the foundation for a major new Virgin-branded financial services offering in the U.S.”

• “We are excited to work with Virgin Group and to bring a unique brand of innovation to the financial services industry,” said Asheesh Advani, president and CEO of CircleLending. “Funding from Virgin USA further underscores the success that CircleLending has seen over the past five years. This investment will allow us to grow our business and develop new financial products on our own and in partnership with banks and other financial institutions. These products will simplify the financing of homes and businesses and help people create, transfer and preserve their wealth.”

• Passed $150 million in loan volume to start the year

• For centuries, individuals have been lending money to relatives, friends and business associates. Today the volume of these private loans in the U.S. is over $89 billion, according to the Federal Reserve. Despite this substantial volume, the process of managing private loans can be fraught with hassle, risk and concern.

• Borrowers can have a hard time repaying a loan when expectations are unclear or when a large lump-sum payment creeps up on them. Lenders are reluctant to send payment reminders or bring up the topic with a delinquent borrower at a holiday meal.

 

CircleLending offers a professional third-party to manage the business of the loan. In addition to the buffer we provide, we have found that discipline of a monthly payment plan using electronic funds transfer can increase the chance that the debt is repaid. When managed this way, the default rate of private loans drops substantially from 14% to less than 5%.

• A service that reduces the chance of default this significantly is good news for both lender and borrower.

• Lenders gain the confidence to offer a helping hand to relatives and friends. They get day-to-day management of the loan by a professional third-party and professional record-keeping. Lenders also get the tools banks use to recover unpaid debts, such as collections and tax deductions for capital losses.

• Borrowers benefit by being able to access loans at favorable terms. These loans are often used to take major financial steps forward, like buying a home, continuing education, launching a business or refinancing high interest credit card debt.

• Customers agree that the concept is something special. Many tell us they were thrilled to find us, they didn't know anything like this existed, and most importantly, that we preserved their relationship through a delicate financial transaction.

CircleLending is the first company to provide an end-to-end solution for managing private loans and mortgages between relatives and friends. Our innovative technologies break new ground to respond to our customers' need to document and service a growing variety of personal, business and real estate transactions.

• We provide a full range of products and services for private loans and mortgages.

• These include:

• Loan documentation, including standard promissory notes, security agreements, mortgages and deeds of trust, as well as payment schedules, electronic signatures and onsite document storage.

• Loan servicing, including flexible repayment schedules, payment processing via electronic funds transfer, year-end reporting, credit reporting, help with restructuring, online accounts, toll free customer service and restructures tailored to loans between relatives and friends.

• Recording services for mortgages, deeds and UCC filings.

• Mortgage services, including title searches, owner reports, escrow and tax payment administration, seller financing services, and full closings.

• Free educational materials, including resources/tools, financial guides, online calculators, data on private loan interest rates across categories, and information on state maximums for private loan interest rates.

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