Renowned entrepreneurial coach and podcast host Chris Harder revealed the details of his latest venture, Frello, a peer-to-peer lending app for personal loans that is set to revolutionize the lending landscape. This project, described by Harder as his “legacy project,” has its roots in a profound personal experience that inspired him to bridge the gap between individuals facing financial challenges and those willing to extend a helping hand.
Harder, self-confessedly “tech-challenged,” shared the catalytic moment that set him on this transformative journey. A direct message on social media from a landscaper on the brink of losing his business and employees prompted Harder to act against his usual policy of not giving money through messaging apps. A divine feeling led him to provide the needed funds, setting off a chain reaction that not only saved a business but created jobs.
“The $680 I gave him was the difference between someone going out of business and two other guys losing their jobs or somebody getting a second chance catching fire and creating two additional jobs in the economy? Just $680?” Harder expressed in amazement.
This impactful incident planted the seed for Frello, an app designed to connect people facing short-term financial challenges with individuals eager to make a positive impact by providing small personal loans.
Harder, admittedly not a tech enthusiast, recognized the need for a skilled partner to turn his vision into reality. So he reached out to Matt Marek, a tech expert and Harder’s business partner. Marek, having previously built and sold a nine-figure tech company to success, was the missing piece to the puzzle. His commitment to the project extended beyond his technical expertise, as evidenced by his dedication to his previous team even after a successful exit.
Harder shared, “I knew that this was my mission. I knew that I had to bring this to life, but boy, was it outside my wheelhouse. But I also knew that I could find someone to do the parts that I was not gonna be good at. And that person happened to be my now business partner, Matt.”
Marek’s team, a group of highly skilled professionals from his previous venture, played a crucial role in fast-tracking the development of Frello. This dynamic team, described by Harder as “tech ninjas,” combined forces to build out the wireframes, stress-test ideas, develop financial models, and bring Frello to life in record time.
Frello aims to create a two-sided marketplace where individuals facing financial challenges can apply for small personal loans without the fear of shame, denials, or complex underwriting processes. On the other side of the platform, lenders can browse through loan requests and make blind bids based on their terms.
The app, which Harder described as the “Tinder for personal loans,” empowers borrowers to choose the best offer from a variety of bids, setting the market for their needs. With an emphasis on small, manageable loans, Frello aims to provide an alternative to traditional payday loans, allowing borrowers the time needed to repay without the cycle of debt.
Addressing concerns about potential defaults, Harder detailed Frello’s proprietary risk score, an algorithm that calculates the amount to be deducted from lenders’ profits to create an aggregate pool. This pool acts as a safety net, guaranteeing that unpaid principal amounts will be replaced in the event of non-payment.
Frello has fully embraced technology, utilizing AI to streamline the lending process, from application to bid selection. The app’s efficiency is a testament to the collaboration between Harder’s vision and Marek’s technical prowess.
With a successful pre-seed round and progress beyond the typical seed stage, Frello is set to embark on a strategic fundraiser. Harder explained that strategic investors would not only provide financial support but also contribute expertise, audiences, or active involvement to drive Frello’s success.
“We’re taking the power away from the institutions that don’t really care about you, and we are putting it in the hands of the people, the way it was supposed to be. Lend to your neighbor, lend to your friend, lend to that person on the street that needed a little bit of help,” emphasized Harder.
While Frello has already attracted interest from celebrity and influencer investors, the team is opening the doors for others to join as strategic investors. Potential investors can apply at the app’s website, provided they meet the accredited investor criteria.
With Frello, Harder and Marek aim to not only transform the lending landscape but also empower individuals to make a positive impact on each other’s lives. This friendlier approach to personal loans is poised to change the way people navigate financial challenges and build prosperity.
“Whatever dream, whatever mission you know that you have inside of you, whatever calling you have inside of you, I urge you, go find the other half,” Harder said. “Don’t let it be an excuse that you’re not good at this, you’re not good at that. Because I’m living proof that not only can it happen, but it can happen at warp speed in the biggest of ways, and you can change the world.”
Published by: Nelly Chavez
