Getting accepted for credit at traditional banks is not always easy for influencers, but that is a problem Karat is trying to solve.
The company has launched the Karat Black Card, which is designed especially with online creators in mind. It provides credit lines that start at $50,000 as well as customised perks such as beauty-focused influencers being able to claim cash back on beauty products and gamers being able to do the same for video game-related purchase, Wired reported.
Karat has partnered with payment company Stripe to help it with its services.
The startup’s underwriting capabilities are based on extensive research by Karat’s founders. This enables them to look for different indicators as to how credit-worthy an influencer is.
That includes things like the size of their audience, what social media platforms they are on, their engagement and if they have done things to professionalise their channels, such as incorporated their business, respond to emails and diversified their revenue.
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