The list of supporters of the Small Business Borrowers’ Bill of Rights is growing. According to an announcement made Tuesday (Aug. 11), the Bill of Rights has a new signatory: StreetShares.
The Bill of Rights is a document created by several players of the alternative lending industry that said they hope to improve transparency for small business borrowers that often lack the knowledge and insight to assess the contracts they agree to when taking out an alternative loan.
The document includes a set of best practices for alternative lenders to follow to ensure the protection of both borrowers and lenders. Those practices include transparent prices, non-abusive products, responsible underwriting, fair treatment from brokers, inclusive credit access and fair collection practices.
StreetShares joined the existing signatories on Tuesday with its public support of the document. “Every small business should have the right to transparent, fairly priced funding options,” said the company’s CEO Mark L. Rockefeller in a statement. “StreetShares has built our marketplace around these principles, and we challenge other lenders to commit to this Bill of Rights as well.”
StreetShares operates an auction-based model allowing investors to bid to finance small businesses seeking financing. The lowest bids are then combined into a single financing product for the borrower. The company, which launched operations only last year, does not hit borrowers with prepayment penalties, reports said.
Existing signatories of the Bill of Rights include Lending Club, Funding Circle, Fundera, Dealstruck and others.
According to Jared Hecht, Fundera CEO and cofounder, the voluntary rules are “really just rooted in common sense.” The voluntary rules were unveiled at the National Press Club earlier this month.