Half Step bridges the capital gap by providing underserved businesses with equitable access to financing. The company reduces interest rates and offers cash collateral to lenders, enabling them to approve more loans. By purchasing loans from lenders, Half Step frees up capital so financial institutions can support additional business growth.
Funding
Funding not disclosed
Founders
Product
Problem
Underserved businesses, particularly those owned by women, face significant barriers in accessing affordable capital due to traditional lending models that often result in higher interest rates and limited loan availability. This capital gap restricts their ability to grow and thrive, perpetuating economic disparities.
Solution
Half Step addresses this capital gap by providing innovative transaction structures that reduce interest rates and offer cash collateral to lenders. This mechanism enables mission-driven lenders, such as Community Development Financial Institutions (CDFIs), to extend more affordable financing to underserved businesses. By mitigating lender risk and improving loan terms, Half Step facilitates greater access to capital, empowering these businesses to expand operations and contribute to community development. The company also purchases loans from lenders, freeing up their capital to support additional businesses.
Target Audience
The primary target audience includes underserved businesses seeking financing and mission-driven lenders, such as CDFIs, looking to expand their lending capacity and offer more competitive terms.
Features
- Transaction structuring to reduce borrower interest rates and extend loan maturities.
- Provision of cash collateral to lenders to mitigate risk and increase loan approval likelihood.
- Loan purchasing from lenders to enhance their liquidity and lending capacity.
- Facilitation of equitable access to capital for businesses historically excluded from traditional financing.
- Support for mission-driven lenders in meeting the demand for affordable financing.