Dallas Family and Friends Loan Startup Zirtue Now Lets Businesses Use Its Platform

Dallas-based loan startup Zirtue raised an additional $ 2 million and rolled out a new feature on Tuesday that allows businesses to use its platform as a payment option for customers with overdue bill payments. .

Zirtue was founded in 2018 to enable users to obtain low-interest loans through friends and family. The company’s latest feature allows partner businesses to ask customers with overdue accounts to apply for loans from friends or family who can then pay the bill directly.

He has been stealthily piloting the feature since early 2021 with several Fortune 500 clients. Those clients include AT&T, UT Southwestern Medical Center and Reliant Energy, according to the company’s website.

“Creditors know and understand that a lot of their customers are doing it offline anyway,” said co-founder and CEO Dennis Cail. “So what we’ve done is mitigate the risk – eliminate the middleman, or the lack of it – and really put that transparency into the process. “

Cail sees the new business payment service as a win-win solution for borrowers and businesses.

The startup’s corporate partnerships will benefit businesses looking to minimize debt and borrowers by providing a financially inclusive, cost-free experience for those in arrears.

The startup’s first partners underline its mission to have a social impact by providing an innovative financial safety net for critical expenses in people’s lives like internet access, mobile phone plans, electricity and health care.

The company recently raised $ 2 million from a start-up venture capital firm Mercury Fund in Houston, Cail said The morning news from Dallas.

The company is positioning itself as the premier relationship-based lending app designed to take the hassle out of asking friends and family to lend money during times of stress. Every year, friends and family lend $ 184 billion, according to at the Federal Reserve Bank.

Since Zirtue doesn’t charge any fees, he earns money through his partnerships with companies. Companies that implement Zirtue for payments pay a fee to the startup for successful transactions.

The company’s platform allows users to sync their billing accounts, and borrowers can make flexible monthly or lump sum payments.

Zirtue employs 12 full-time workers and 10 subcontractors. The startup has raised $ 6 million in capital to date. Cail said the company is hiring for at least four other positions in Dallas.

Zirtue’s backers include Google, Morgan Stanley, and Capital Factory. The company previously said it expects 120% annual revenue growth by the end of 2021. It gained nearly 200,000 lenders and borrowers in 2020 alone, and Cail said the platform form would serve more than 300,000 people by the end of this year.

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