TightSpot offers microloans through apps

The sharing economy is expanding into the financial services industry where individuals are offering to provide loans of various sizes. One new arrival is TightSpot, a micro lending mobile app that aims to make borrowing and lending as easy and ordering an Uber.

TightSpot is a platform where borrowers and lenders meet online. Someone who needs a small loan can set the amount and repayment terms. Others who have money to lend can provide the cash because they think it’s a good deal or simply because they want to help others who are in a tight spot.

The service eliminates the review process and non-negotiable terms that banks insist on and the system avoids the sky-high interest rates that are imposed by payday loan shops. The idea behind TightSpot is to make borrowing more like getting a loan from a friend than from an impersonal institution.

Users who register at the TightSpot website supply an image of their drivers’ license and their Facebook name. Lenders browse the posted requests to find one they can afford and a borrower who seems trustworthy. The funds are transferred using Venmo.

For more details, check out the TightSpot website and the TightSpot apps that are available for free in the iTunes App Store and Google Play Store.

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Written by Ric Manning

Follow me on Twitter @ricmanning and read my technology columns at My Well Being.