Loaning friends and family money is complicated and risks straining and breaking relationships. Pigeon Loans, a consumer FinTech startup founded by Kaben Clauson and Brian Bristol, leverages technology to make lending to one’s loved ones a financially and emotionally painless process.
Both parties need a clear plan to repay to avoid ruining a friendship. Setting correct expectations seems to be the key to this working out.Clauson and Bristolcited that nearly 27 million Americans relied on borrowing from friends and family in 2021. In 2020, the number was just under 20 million. These loans are expected to increase dramatically as record inflation and consumer debt starts to take their toll.
First, our product starts by helping both parties understand how payments will be made and on what schedule. Good planning helps solve most of the problems with these types of loans. We also have a robust education center that walks both lenders and borrowers through best practices for dealing with late payments and defaults and managing a healthy relationship. Having a third-party software system in place dramatically reduces the awkwardness of these types of loans.