Driven Capital: Security for
Accredited Investor Lenders
Today, accredited investor lenders can participate in Driven Capital’s beta stage loan pool and earn a projected 8% return on investment.
In the future, Driven Capital expects to offer participating accredited investors the opportunity to invest at their personal comfort level by determining the credit-worthiness of the borrower with whom he or she is willing to work. Risk is minimized because Driven Capital holds the title to the assets under loan. And, in the full operational stage for Driven Capital, accredited investor lenders are expected to have the advantage of spreading risk broadly by joining a large pool of lenders who have also agreed to loan money to borrowers within the same specific credit range.
As P2P industry pioneer Lending Club has demonstrated, the centuries-old traditional bank lending model has not improved much on its efficiency since 1910. That’s because most of the cost advantages of high technology have been missed by consumer banks. Also, banks severely restricted consumer access to credit for auto and other necessary purchases as they limited their own exposure in the Great Recession. Less-than-prime borrowers often were left without options.
Driven Capital has delivered a transformational business model to the auto lending space with secured lending by holding all titles for loans it originates until the loan is paid in full. Driven Capital allocates 100 percent of invested funds to consumer auto loans. Accredited lenders may place a minimum of $30,000 in each loan pool.