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Unconventional lender raises millions to help businesses offer loans
Unconventional lender raises millions to help businesses offer loans

James Gutierrez, who founded Progreso Financiero to make loans to poor immigrants with limited credit histories, said Tuesday that he has raised $16 million in private funding and has lined up $65 million in credit to help companies offer loans to similar customers. The new firm, Insikt, will help retailers, such as furniture stores, offer installment loans of up to $10,000 to customers with weak or no credit. The San Francisco firm provides credit-scoring software similar to that used by Progreso by combining database searches and what Gutierrez has called an “eHarmony-type questionnaire” to gauge the likelihood of repayment. At Progreso, a borrower might repay a $1,000...

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