Member Exclusive, Online Lenders

Grain is rethinking credit with loans based on active cash flows, and not credit history

  • Grain allows customers to attain a revolving line of credit through their existing debit card without issuing a physical credit card.
  • The firm wants to help customers with daily spending while allowing them to build a good credit score.

Email a Friend

Grain is rethinking credit with loans based on active cash flows, and not credit history

Grain, a fintech firm out of Oakland, California, is rethinking how to provide Americans with credit. The firm considers currently available credit options to often be unfair, ruthless, and even discriminatory. Their solution is a revolving line of credit that does not look at the applicant’s past, i.e. their credit history, but instead reviews their present situation, i.e. their active income and cash flow. The firm was co-founded in 2017 by Christian-Robert Joseph, who previously worked as a product manager at Dropbox, Patrick De Suza, who spent a decade at Goldman Sachs, and Carl-Alain Memnon, who worked at Virtu Financial.

A CreditWise survey found finances to be the number one cause of stress in the US (73%), ahead of politics (59%), career (49%), and family (46%). The stress intensifies as we move down the generations, with the vast majority of Gen Z (82%) and Millennial respondents (81%) reporting that finances are at least somewhat stressful for them. 

These personal finance insecurities make sense as we emerge from the uncertainty of the pandemic. Many Americans lost their jobs or suffered heavy losses to their businesses. Their credit scores suffered, causing them to fall behind on their payments and take on more loans. The anxiety is still fresh, and even though some 42% of the respondents expect their financial situation to improve over the next year, it certainly will not settle anytime soon.

This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “Grain is rethinking credit with loans based on active cash flows, and not credit history”

Member Exclusive, Online Lenders

‘Banks can look at you and say, we don’t want to look at you’: Payability wants to serve the seller-entrepreneur

  • Payability, a company that finances online SMBs, saw major success over the course of the pandemic.
  • But creating a risk model that can shift and swerve through the world of seller sites is a challenge.
Rivka Abramson | October 13, 2021
Member Exclusive, Online Lenders

What’s Facebook up to with its Invoice Fast Track program?

  • Facebook hasn't found a lot of success in its fintech efforts.
  • Now, the firm has shifted from B2C to B2B with a new invoice financing solution.
Zachary Miller | October 11, 2021
Member Exclusive, Online Lenders

‘Not moving in any direction is worse than the wrong direction’: How banks can kickstart lending to small businesses

  • With the right products and services, small businesses are becoming a promising revenue stream
  • But with little experience with SMBs, a lot of incumbents still struggle to service them
Rivka Abramson | October 07, 2021
Member Exclusive, Online Lenders

How Petal’s product strategy extends access to credit through technology

  • Petal is a no-fee credit card company ideal for credit builders and rebuilders.
  • In three years, Petal has launched three products and a B2B API.
Shehzil Zahid | September 23, 2021
Member Exclusive, Online Lenders

Mission Lane’s approach to helping people access credit with Shane Holdaway

  • Shane Holdaway spent close to two decades working in large traditional financial institutions.
  • As CEO of Mission Lane, he's serving a million customers that banks tend to overlook.
Zachary Miller | July 30, 2021
More Articles