BACKGROUND
Tomorrow Green was referred to BetterFi by community partner Signal Center. Tomorrow was part of their WorkReady program to prepare and secure steady employment. Tomorrow had secured a job but the transmission on her vehicle failed. Without transportation she couldn’t reliably and affordably get to her new job, jeopardizing her financial stability.
SOLUTION
BetterFi and CBA Fund
BetterFi exists to combat payday, title, and flex lending, offering its clients a route out of dependence on, or a means to avoid, predatory high-APR loans. Through BetterFi’s partnership with CBA Fund, BetterFi is able to provide an alternative to predatory loans that typically charge an APR of 260%. Because or Tomorrow’s limited credit history, BetterFi was the only nonpredatory consumer lender that would help her.
IMPACT
The loan from BetterFi not only allowed Tomorrow to fix her transmission so she could get to work, but she was also able to avoid a predatory loan and the asset-strapping debt cycle that comes with it.
BetterFi's mission is to prove that a financially sustainable consumer lending alternative to predatory lending is possible. CBA Fund's support has enabled BetterFi to take the first steps toward scaling our predatory lending alternative. Concessionally priced lending capital form CBA Fund enabled BetterFi to double their consumer loan portfolio, drastically increasing our impact and enabling BetterFi to save our clients hundreds of thousands of dollars – an average of $5,200 per loan – compared to the predatory loan alternatives accessible to them.
“The transmission in my car went out. I did not have the money to cover all of the repairs, and the process would have taken 15 weeks before I could get my car. I would have lost everything. BetterFi was the only company that would help me."
Tomorrow Green
INTERESTED IN LEARNING MORE?
For more information about CBA Fund and how it empowers life-changing organizations like BetterFi visit: https://creditbuildersalliance.org/cba-services/cba-fund/
For more information about the critical mission of BetterFi visit: https://www.betterfi.co/