Currently crowdfunding on crowdcube, some of you may be interested.
Yep, I’ve already pledged to invest, looks very interesting.
I love these discussions lol
I see they’re launching on iOS only… any interest I may have had is immediately gone.
The company aims to generate revenue via a fixed monthly subscription, with no other fees. The pricing will be set to the customer’s credit limit, divided by 100. For example, if the customer’s credit limit is £1000, their monthly subscription cost will be £10.
Is this some sort of joke? I’m out.
Hi @Anzo. Fea founder here. Not sure where you got that from.
Here is how our pricing works in one sentence: we charge a fixed fee from consumers which is £2 in fee for every £100 that you borrow, with no other fees.
There is no compounding. So if you owed 2 pounds in fees from last month, even if you don’t pay it off, the fee won’t ‘grow/compound’.
There are no late fees etc. As I said, no other fees apart from what’s mentioned above.
There is no grace period. You pay a fee of 2 for every 100 you borrow, starting from day 1. So at end of month 1 if your average balance was 100 during the course of the month, you pay 2£ in fees.
You’ll be able to link it to your Monzo account so you can zap money over from Fea to Monzo by simply pushing a button.
Are you planning to offer cards to people with a lower income level or poorer credit rating?
Thanks for dropping by, Faisal!
If I spend £99 in my first month, I assume I will owe £2 in fees? So £101 would mean £4 in fees?
Also, will there be fees if the bill is paid in full at the end of the month like conventional credit cards?
Yes to lower income level and yes to people with little or no credit history (e.g. ‘millennials’ or recent migrants).
Poor credit history - that would be tough for us, though we do want to give everyone a chance to start somewhere - so if you really do have a poor credit history we’d try to start you off with a really low credit limit (really low, literally 10-50 pounds) to help you rebuild your history, rather than deny you outright.
I got it from here.
Hi @HoddzDJ, no it will be prorated, so for for example. £99 spend in first month it will be (2)(99/100) = £1.98 in fee
Its a bit different from traditional credit cards in that you will pay the fee even if you pay in full at month end.
Thanks for clarifying
Hi @Anzo. I see. I don’t know who business agent is, please use the docs on Crowdcube website for accurate info. Sorry for any confusion caused.
Thanks for coming on
So if I bought something for £1,000, and then paid off the balance straight away, what would my fee be?
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I’m trying to get some context to your proposed product. It’s difficult to do that with what little information is available on Crowdcube.
I see you’ve responded to three questions there and there’s interest here. Do you plan a more coherent forum where you can share the product ideas?
Hi @nickh, assuming you paid off the balance straight away / brought your balance down to 0 again within 72 hours, then you pay no fee. We will have a grace period of 3 days because otherwise it just gets a bit silly to calculate fees <£1.
Hi @HoddzDJ, please see reply above.
Hi @Demmedelusive yes, we are working on a Q&A page / forum now, it should be live in the next 2 days. Will post a link here once its ready.