FYGO launches
FYGO, the newest site in the social networking borrowing and lending arena officially launched into public beta last Wednesday. Somewhat similar to Prosper, FYGO is based on a much closer network of people.
The power of FYGO lies in your relationships - trusted financial collaboration networks deliver unprecedented value to participants. At FYGO, our online financial collaboration networks are primarily made up of people who know and trust one another - family members, friends, business associates, community groups, and others. Your personal network is free to decide who receives what funds, plus set a fair interest rate and repayment terms.
While the idea might be sound, and in most cases, the people named are probably a little more certain to lend to you, but is there any worse of an idea than to borrow from friends and family? Sure is. Borrowing from co-workers, business associates and community groups. With FYGO, the potential to ruin many relationships is abundant. Only if you default of course, as FYGO sets the payment schedule and the rate.
No more can Uncle Bill demand a payment, or get mad because you haven’t paid a payment in three months.(beer is expensive) And maybe this is where FYGO can be revolutionary. Many friendships and relationships have been ruined by lending from friends and relatives. Now the details are set in stone and those friends and relatives are nearly guaranteed timely payment and payoff of the loan. That and the principle is spread out over several people instead of just one rich uncle.
I don’t think that FYGO is a service that I would take advantage of. I absolutely refuse to borrow from friends and family. Not because I’m afraid of ruining the relationships, although that is always a possibility, but because I would rather not have my friends, relatives, or business associates know any of my financial information. I don’t post it here for the same reasons.
That said, FYGO certainly has an application. It’s a niche version of Prosper and should get a fair amount of use.
Technorati Tags: FYGO, Lending, borrowing, relationship lending
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Janaki said,
Wrote on November 23, 2006 @ 2:05 am
When you say “your financial information being known to others”, what exactly do you mean? I hope you don’t mean that the site divulges any sensitive data. Because I don’t think it does.
thatedeguy said,
Wrote on November 23, 2006 @ 9:25 pm
No, I realize that they wouldn’t reveal any sensitive data. What I did mean is that the idea is that you borrow from your social circle, which seems like a bad idea since those who you borrow from would now your credit worthiness as well as part of your financial picture in the form of the loan you have through them.
David - FYGO said,
Wrote on December 9, 2006 @ 3:23 pm
You are correct that we do not show any sensitive information. We actually think that borrowing from people you know is smart because it is a better alternative than credit cards or a pay day loans. Also, by creating a lending network on FYGO you are able to increase your financing options (you are no longer limited to people that are near you and people you know and trust may invite others in that you may consider transacting with). It is up to you if you want to list the “why” you need some extra cash or you can just simply post a loan request to your group. It is also important to keep in mind that people that need a loan today may be lending tomorrow. FYGO is simply a smart new way to lend and borrow.
David - FYGO said,
Wrote on December 9, 2006 @ 3:33 pm
Also, If you would like to participate in our Beta please go to http://www.fygo.com and Click on the Join Now button. Please indicate that you came from this site. Thank you.
Javier Ballesteros said,
Wrote on January 9, 2007 @ 4:29 pm
Fygo is the smart solution to the high interest charged by lenders since you can actually set the interest rate and longevity of the loan.
And even more practical if you have any savings, since the return for your money on FYGO will be much greater than any bank or entity is going to provide.
Therefore any way you look at it it’s a win win situation. You will take the money the banks are making and put it in your own pockets, there is nothing wrong with that , is it????
thank you for this great idea.
Jer said,
Wrote on September 9, 2007 @ 2:53 pm
As a payday loan operator for the past 10 + years I know that friends and family do not want to make small, unsecured loans to their brother, sister, friend or neighbor. I cannot recount the number of times I answered our phones and listened while the person on the other end asked if we would make the loan rather than them because they were already owed money by the proposed borrower and did not want to do it again.
These people would literally drive the borrower to our payday loan store !