Credible Labs in San Francisco has completed a round of seed financing that it says will fuel further growth of its student loan refinancing business.
The company announced Thursday that it closed the final $1.5 million of its $2.7 million total in seed funding and said it intends to use the funds to hire more staff and expand its product offerings.
Credible has compared its service to Kayak.com, the online tool that allows users to research multiple options for airfare and hotel reservations. Those with student loan debt can fill out a single application with Credible to find multiple refinancing options, allowing them to take advantage of better interest rates.
By allowing people to compare offers from multiple lenders, Credible helped borrowers save an average of $11,688 by refinancing in 2014, the company said.
"More lenders are providing student loan refinancing options, but the benefits are not realized unless qualified graduates can easily find loans on terms that best meet their needs, like specific loans for physicians or graduated repayment structures,&" Credible founder and CEO Stephen Dash said in a news release. "We are removing friction from the process, and giving lenders access to the exact types of borrowers they want to underwrite."
Credible had previously raised $500,000 from venture capital funds and angel investors. Its base of investors includes Carthona Capital, Cthulhu Ventures and Redbus Group.