New crowdfunding platform called Favoroo is helping people borrow small amounts of money from their friends and acquaintances on Facebook or Twitter. Basically, it is a Kickstarter for small personal loans.
Instead of using a traditional lender or asking only your closest friends or family you can now tap into your entire social network of friends, acquaintances and other people who may be able to help you out.
The way Favoroo works is by allowing people to request small Favors from their social network in exchange for Rewards. For example say I need $500 to fix my car and I don’t want to borrow from a bank or take out a high interest cash advance, I would go on Favoroo and create a few Rewards. These can be things as simple as rewarding people with a personalized thank you video or as personal as cleaning your friends entire apartment.
Each Reward is usually between $10 – $100, so from the example above I would only really need about 10 or more people to give me $50 each and then I can get my full $500 to pay for my car fixes. Once I get the money I make sure all the people that have helped me get rewarded. In addition to these rewards I also must pay people back. Favoroo gives you an option to pay people back within 30 days or in monthly instalments that are spread over 4 months.
The rewards can get quite creative and funny, I browsed a few people’s favor requests and found a number of creative rewards that were kind of funny:
For a $15 Favor I will send you a picture of me dressed up as a chicken
For a $25 Favor I will create a rap song for you that will blow your mind away
For a $100 Favor I will give your cat a full make over (must live close by)
People basically give you these rewards for helping them out, some of which can be pretty entertaining.
Once you begin borrowing money from your direct social network Favoroo lets you build credibility reflected as a credit score on your profile. Once you start paying people back and not getting any complaints your profile becomes visible to more and more people using Favoroo and you can start receiving favors from people outside your direct social network.
Currently the platform is invite only and luckily I have 1000 invites to share, so feel free to use the invite code below if you want to access the site:
Invite Code: YuxPS250