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Freedom Financial Network
Industry Credit (finance)
Founded San Mateo, California, United States (2013)
Headquarters San Mateo, California, USA
Area served
United States
Key people
Andrew Housser, CEO; Joseph Toms, president
Products Personal loan
Number of employees
600 (2013)

FreedomPlus is a lender that focuses on underwriting loans to prime and sub-prime consumers. FreedomPlus is the consumer brand of Freedom Financial Network, LLC, which is headquartered in San Mateo, California. FreedomPlus developed a proprietary underwriting process that delivers low-cost loans to borrowers and low-risk access to consumer loan portfolios for accredited investors.[1]

In December 2013, the Freedom Financial Network announced it received a venture capital commitment of $125 million from Vulcan Capital, which is Vulcan Inc.'s investment company. Freedom Financial Network will use the capital to grow its lending operations and to launch FreedomPlus, an online lending platform set to debut in early 2014.[needs update] FreedomPlus will be open to accredited investors to invest in pools of loans, but it is not a peer to peer lending company.[2]

FreedomPlus will be led by Joseph Toms, the former managing director at LC Advisors, Lending Club’s registered investment advisor subsidiary, and Chief Investment Officer at Prosper Marketplace.[2] Both are peer-to-peer lenders.

FreedomPlus will focus on “emerging prime” borrowers with FICO scores between 600 and 749, of which there are 80 million in the US.[2][3] The maximum loan amount will be $35,000 and the maximum interest rate will be less than 36%, with loan terms of two to five years.[2]

The company will use traditional underwriting tools, such as credit scores, when underwriting loans. It will also use a significant human component and talk with borrowers to verify information and understand the goals they wish to accomplish with the loan, to try to find loans that fits borrowers' specific needs.[4]


Inception The parent company of FreedomPlus, Freedom Financial Network, started a pilot program in 2008 that made unsecured loans to consumers struggling with their existing debt. The company lent $25 million to people who had average FICO scores of 576. Average loan balances were greater than $15,000, and annual default rates were less than 2%. Interest rates are 3.75% above prime consumer debt rates.[4]


  • Andrew Housser, CEO and Founder
  • Joseph Toms, President and Chief Investment Officer

See also[edit]


  1. ^ "Freedom Financial Network Secures $125 Million From Vulcan Capital for New Personalized Lending Platform". Marketwired. December 11, 2013. 
  2. ^ a b c d Renton, Peter (December 11, 2013). "Joe Toms is Back Heading Up a New Consumer Lending Platform". Lend Academy. 
  3. ^ Huynh, Frederic (April 15, 2013). "FICO Score Distribution Remains Mixed". Fair Isaac & Co. Retrieved December 11, 2013. 
  4. ^ a b Brustein, Joshua (December 11, 2013). "Banks Aren't Lending Enough. Can Startups Do Better?". Businessweek. 

External links[edit]