The news: Possible Finance, a Seattle startup that offers loans, just raised an additional $20 million and plans to launch a new credit card.
The details: The company got its start selling small loans that give borrowers more time to pay back while helping people rebuild their credit. The new product is a credit card that does not charge interest or late fees; users instead pay a flat monthly fee for up to an $800 limit. It does not require a credit score check or security deposit.
The strategy: Possible CEO Tony Huang said credit card companies make most of their revenue by lending to “vulnerable” customers who are in debt and have to pay interest and late fees. “The whole industry is economically incentivized to keep people in debt,” he said. Possible doesn’t profit from customers with debt.
“The Possible Card is not only the safest credit card ever, it’s also the first card to help customers spend less, not more, of their hard-earned money,” Huang said.
Possible is also launching a cash advance product called Possible Cash, which helps customers get approved for a Possible Card if cash is paid back on a regular, on-time cadence.
The funding: Previous backers including Union Square Ventures, Canvas Ventures and Unlock Venture Partners participated in the new round, as well as new investor Euclidean Capital. Total funding is $45 million to date.
Possible also recently partnered with Coastal Community Bank to accelerate its development.
The people: Huang and his co-founders — Prasad Mahendra and Tyler Conant — previously worked together at Axon, the leading manufacturer of non-lethal Taser stun guns, policing software, and supplies including in-car and policy body cameras.
Possible recently made key hires:
- Kevin Platshon, Venmo’s former marketing chief, as CMO
- Ellen Falbo, previously a senior credit officer at Capital One, as chief credit officer
- Jesse Levey, former president of Credit Sesame, as chief product officer.
The metrics: Possible has provided more than 1.65 million loans to more than 500,000 U.S. customers. The 100-person company did not reveal revenue data. It is not yet profitable.