Mobile payments startup Corduro is proving that it’s far more than just another Square imitator.
The Southlake, Tx-based startup received funding from Google Ventures because it’s not just targeting mom and pop stores. Corduro’s sales team is focused on landing larger customers, including hospitals and schools, and it’s cultivating some interesting partnerships with other startups.
One such partnership is with LendUp, a website and mobile app where people with poor credit apply for short-term loans. More specifically, the two companies have dreamed up a system for people who need help paying their medical bills.
“Together we bring a solution to market that keeps the lending relationship between consumer and LendUp, with no recourse to the hospital, it’s a guaranteed cash payment on approval,” said Robert Ziegler, Corduro’s CEO.
The company is already working with schools and hospitals, including Dignity Health, the largest non-profit hospital system in California.
Participating hospitals can give patients the option to take a loan from LendUp. Unlike other small-dollar lenders, there are no hidden fees, and LendUp uses a proprietary algorithm to make loan decisions in a matter of minutes. Read more about venture-backed LendUp here.
For a first-time borrower, LendUp charges a maximum of 15 percent of the loan amount plus fees. The company offers opportunities for customers to get discounts for paying early, on time, or by opting into a personal finance crash-course and credit tools offered by LendUp.
If approved for a loan, patients can pay their medical expenses in a matter of minutes via Corduro’s Android or iPhone apps. Corduro’s team believes that hospitals will be intrigued as it’s a means to recover revenue lost in the emergency care of patients unable to pay their bills.
Corduro claims that partnerships like these make it easier for institutions to process, receive, and lend money — and that consumers will ultimately benefit. It’s a “victory for care-givers and consumers,” a news release states.