SnapCredit is a new entrant into the unsecured lending category. However the company has a small twist to its products.The company somewhat simplifies unsecured lending.
SnapCredit only ‘provides instant credit solutions to employees’. As opposed to RenMoney and One Credit, the Snap credit ‘collaborate with employers and provide their staff with an online platform to access loans’.
The company said it ‘platform eliminates all the hassle and gives employees instant 24/7 access to credit at very competitive and fair rates’. SnapCredit believes it has a better proposition to employees who need loans and its interests are lower than conventional unsecured lenders and micro finance banks.
So in essence the company is a combo of a payday lending and unsecured lending. The employee who needs credit will however rely on the credit score of its employer and not their own credit rating.
In a way, SnapCredit’s risk management model is somewhat stronger since employers, particularly blue chips and viable companies are the middle men. However, the risk of layoffs and retrenchment of employees, insolvency and bankruptcy particularly in the current harsh economic climate is risk factor, since Snap Credit betting on the employers themselves.
All the same, It is possible that SnapCredit will be getting more customers than its peers.
The only operates in Lagos and it has been active in Nigeria since 2014 and is part of the Snap-Capital financing group.
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