Americans informally lend an estimated $184 billion a year. Almost none of those loans are documented, serviced, or protected.
A turnkey way to extend structured lending. We handle the documentation, servicing, and compliance end-to-end.
Informal Lending,
now structured.
A friend or loved one comes to you for a loan. You're not a bank — but nonetheless you lend them money. We've been there, done that. If the loan terms were unclear, payments were skipped, and/or the obligation was not repaid, bad feelings could have resulted and your relationship suffered.
Friendly Bank can now help you formalize your loans. You provide the capital. You refer the borrower. We provide the infrastructure, documentation, servicing, compliance and repayment operations that keep the loan on track.
How it works.
You become a
Friendly Bank Patron.
To become a Patron, simply set up an FDIC-insured account with Friendly Bank. After your funds are deposited, you can refer a Circle Member — someone who wants to borrow money from you. When a Circle Member is referred to Friendly Bank, we email them a loan application. If the Circle Member wants to secure a loan, they complete the application and authorize us to share their credit score and other proprietary underwriting details with you, the Patron.
Privately, you decide whether to fund the entire loan, a portion of the loan, or no loan. Friendly Bank — not you — handles all the communication with the Circle Member, including whether the loan has been approved, modified or denied. If any portion of the loan has been approved, you set the loan terms: loan amount, interest rate, repayment schedule, and collection policy.
Friendly Bank does the rest…
No undocumented loans.
Promissory notes, disclosures, e-signature packages, and loan controls are put in place before an approved loan drifts into informal risks.
No chasing payments.
Loan records, statements, ACH, payoffs, and restructure mechanisms all run through Friendly Bank end to end.
No guessing about compliance.
Rules and regulations are followed. Statutory compliance is adhered to. Collection policies are built into the workflow before the loan becomes a problem.
Lend to people you trust.
Make it official.
Want to go deeper?
Learn more about how Friendly Bank works for Patrons, Members, and structured lending.