Pesto reported raising $11 million in financing and launching an asset-backed credit card.
The Pesto Mastercard is the first product of this company. The firm’s new product offer is available to customers who send valuables for the purpose of their subsequent use as collateral. This means of payment is intended to provide an alternative to pawnshops and payday loans. The relevant information is contained in the company’s press release, which was published last Thursday, May 25.
The founder and CEO of Pesto, James Savoldelli, said that his company’s mission is to provide American consumers of financial services with alternative ways to solve material issues that do not involve the need for lending with high-interest rates. He noted that the firm he founded provides a simple way to increase liquidity and increase credit at the expense of assets without the condition of their sale.
To receive a new card, the company’s customers must provide detailed information about their valuable goods, which will be analyzed by a virtual creditworthiness assessment tool. Consumers then have to fill out an online application. The next step is to send the company’s goods by mail. After that, customers receive a final loan offer.
The press release states that consumers are provided with a credit card issued by Continental Bank based on the value of the assets provided to the company. In this case, there are rates that are 90% lower than the equivalent pawnshop indicators.
Over time, consumers will have the opportunity to set or change their credit rating to give them the opportunity to get an unsecured credit card. The relevant information is contained in the press release.
Pesto has received funding from more than ten investors, including Activant Capital. The company intends to use these funds to expand its customer base throughout the United States.
Activant Capital partner David Young says that millions of Americans are unable to fulfill their loan obligations due to excessively strict conditions. He also noted that inflation contributes to the growth of household spending. Separately, he stressed that banks are tightening lending to customers with a low FICO level.
David Young said that Pesto is following a mission to overcome the debt trap pandemic in the United States and begin the path to a safer financial future, which will be provided by affordable loans.
The results of special studies indicate that in the United States, 80% of consumers who reported the impact of price growth on their financial situation receive a salary that does not compensate for the increase in the level of costs.
As we have reported earlier, PartsTech Raises $35 Million to Expand B2B Automotive Parts Marketplace.