Funding: BLender raises $5 million to connect borrowers and lenders around the world

It has been a decade since social lending or P2P lending made its breakthrough in the loan arena. The idea is simple: it involves connecting an individual with liquid money that is available for investment with one who needs a loan but is deterred by high interest rates or the bureaucracy of banks or credit card companies. The Israeli company BLender operates an online platform to make such connections and announced today (Sunday) a funding round of $5 million fund led by Blumberg Capital. Read more.

Lending venture BLender raises $5 million

Today BLender announced a funding round of $5 million from Blumberg Capital. Since its founding, the company has raised $3.5 million, not including the current round. BLender operates a platform that allows people to lend money to other people—without financial intermediation. Read more.

BLender raises $5 million for peer-to-peer lending in funding round led by Blumberg Capital

”This funding will help us to strengthen BLender’s position in Israel and to enter new markets in Western Europe and Latin America,” said Dr. Gal Aviv, the CEO. David Blumberg, managing partner of Blumberg Capital, said, “We have witnessed the growth of the field of P2P and its transformation into a legitimate alternative to the traditional lending markets in many countries around the world. As a fund that has previously invested in B2B and B2C credit card companies and marketplaces and in many other companies in the field of credit and FinTech, we have no doubt that BLender offers a unique product in the field, with innovative and groundbreaking technology.” Read more.

BLender raised $5 million from Blumberg Capital

The company operates a lending service for members, allowing investors to spread investments as loans at convenient interest rates. To date, hundreds of borrowers have borrowed some $10 million through BLender. Read more.

Interest rate cap is a step in the right direction for the financial system

Shaked’s proposed bill will effectively abolish the inequalities existing in the market today, which enables traditional institutions to provide credit with no cap on the interest rate, and correct the fundamental distortion resulting from the banks and credit card companies’ ability to join forces. Read more.

BLender takes capitalism back to its roots

BLender’s business model is not built on arbitrage of the differential between the interest paid by the borrower and that received by the lender. BLender takes a commission of 2.5%, or at least NIS 200, from the borrower, plus a fee of one percent of the returns of the lender, spread over the lifespan of the loans, for an actual total of around 0.4% during the year. Read more.

BLender scores $5M to expand the boundaries of P2P lending

BLender’s hybrid model creates credit ratings based on financial, social, and demographic background to upend the banks’ foothold on peer-to-peer lending—and empower emerging markets. Read more.

BLender is one of the few sites in the world, and the only one in Israel, that enables the buying and selling of existing loans. Any lender may sell his/her loans to other lenders. In other words, if you want to get back the money you lent, you simply put the loan for sale on BLender…at any point during the lifetime of the loan. Learn more on Economic Night.

Re-Blend: The stock exchange for loans between individuals

Dr. Gal Aviv, CEO and founder of BLender: “Once we identified lenders’ need flexibility, liquidity and control over investment periods of investment, we decided to develop a unique technology that allows liquidity. This is a revolution in the savings and credit markets. The secondary market created through BLender’s Re-Blend will greatly increase the number of lenders whose needs may be met through the platform, offering a flexible savings option with an average return of 6% annually. It is a high-quality alternative to the savings options available in the market today, especially given the current zero interest rate period.” Read more.

An alternative to the stock market? BLender will make it possible for you to sell a loan portfolio

According to Aviv, “BLender aims to lead the non-bank loan market and to present an attractive, convenient and modern alternative to the traditional lending market, which uses advanced technology and makes it easy for both borrowers and lenders. Our new and innovative development puts BLender on par with the world’s leading platforms, like Zopa and Lending Club.” Read more.