BetterFi

What BetterFi does

BetterFi is a Tennessee-based nonprofit 501(c)(3) economic justice enterprise and U.S. Treasury-certified Community Development Financial Institution (CDFI) founded in 2018. The organization refinances predatory payday, title, and flex loans — Tennessee products that can carry effective annualized interest rates as high as 460% — into affordable installment loans with terms of 6 to 18 months and a maximum APR of 28%. Complementary products include the Savings + Credit Builder program (graduated payment plans at $500, $1,000, or $1,500 targets with credit bureau reporting), Microenterprise (business) loans, and Cash/Flow emergency credit. Free financial coaching and IRS-certified Volunteer Income Tax Assistance (VITA) extend the offering into education and tax services for households earning under $70,000 per year.

The underlying technology stack is conventional rather than proprietary: a third-party loan management platform serves the client portal (betterfi.myloanpanel.com), and a planned Plaid integration will replace manual bank statement submission with automated data access to enable a forthcoming Cashflow Snapshot Tool. Comparison and savings calculators (Comparo, savings estimator) support prospect education. The organization holds a Tennessee Industrial Loan and Thrift (TILT) license and NMLS #1786027.

Revenue is generated through three streams: loan interest income (capped at 28% APR and typically between 10% and 28%), tax-deductible donations and foundation grants (including a transformational grant from the Robert F. Stone Foundation enabling the Chattanooga branch), and Amazon Smile affiliate revenue (0.5% of qualifying purchases). Customer acquisition is primarily community-led via a referral network of 30+ nonprofit, banking, faith, employer, and government partners across Tennessee; ~13% of recent clients were acquired via paid advertising initiated in 2025. BetterFi operates two offices (Coalmont in Grundy County and Chattanooga in Hamilton County, opened April 2025), has disbursed over $850,000 in cumulative credit, and estimates client savings of more than $2 million compared to predatory lenders.

Name

BetterFi

Legal name

BetterFi

Website

https://betterfi.co

Company type

Private

Founded year

2018

Operating status

Operating

Headcount range

1–10 employees

Short description

BetterFi is a Tennessee-based nonprofit 501(c)(3) and certified CDFI that refinances predatory payday, title, and flex loans into affordable installment loans (max 28% APR) and offers credit-builder, microenterprise, coaching, and free VITA tax services to low-income Tennessee residents escaping predatory debt.

Ownership category

akta.pro rank

Product category

Community Development Consumer Lending

NAICS

Credit Intermediation and Related Activities (522)

SIC

Personal Credit Institutions (6141)

akta.pro primary industry

Second-Chance Banking-Linked Lending (e.g., bank-account-based credit for thin-file/negative-file) (FSAKAOAH)

akta.pro secondary industries

Consumer Credit Counseling & Budgeting (FSAEAFAA), Debt Management & Paydown (Student Loans, Credit Cards) (FSAGADAD)

Keywords

• Affordable installment loans
• Credit builder loans
• Community development lending
• Financial coaching services
• Nonprofit consumer lending

Headquarters

HQ city

Coalmont

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Loan Interest Income: BetterFi generates revenue through interest on affordable installment loans provided to clients escaping predatory lending. Maximum APR is capped at 28% as a nonprofit CDFI.
2. Donations and Grants: As a 501(c)(3) nonprofit, BetterFi receives charitable donations and grants from foundations and individuals. Donations are tax-deductible.
3. Amazon Smile: BetterFi receives 0.5% of qualifying Amazon purchases when customers designate them as their charity on smile.amazon.com.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels8 records

Core offering

BetterFi is a nonprofit 501(c)(3) and certified CDFI that provides affordable installment loans (ReFi) as an alternative to predatory payday, title, and flex loans, with terms of 6–18 months and a maximum APR of 28%. It complements these credit products with the Savings + Credit Builder program (which reports payments to credit bureaus), Microenterprise loans, Cash/Flow emergency credit, free Financial Coaching, and IRS-certified VITA free tax preparation. All offerings target underserved Tennessee residents escaping debt traps and seeking a pathway to mainstream financial fitness.

Product overview

BetterFi is a nonprofit 501(c)(3) economic justice enterprise and CDFI that provides a portfolio of financial products and services as alternatives to predatory lending. The core offering is ReFi (refinancing), which consolidates predatory payday, title, and flex loans into affordable installment loans. Supporting products include Savings + Credit Builder for building credit and savings simultaneously, Microenterprise loans for small businesses, and Cash/Flow for emergency credit. Complementary services include free Financial Coaching (budgeting, credit education) and IRS-certified VITA tax preparation. All credit products share a maximum APR of 28% and terms of 6-18 months. Clients access their accounts through a self-service Client Portal. The organization serves primarily rural Tennessee communities with offices in Grundy County (Coalmont) and Hamilton County (Chattanooga).

Differentiator

Problem solved

Functional benefit

Products and services

• ReFi with BetterFi Refinancing product that consolidates clients' existing payday, title, and flex loans into affordable, fully amortized installment loans with terms of 6–18 months and a maximum APR of 28%, enabling clients to pay less each month, pay less overall, build credit, and actually pay off their loans. Targeted at Tennessee residents trapped in predatory 460% APR loans.
• Savings + Credit Builder Loan program that helps clients build toward savings goals of $500 (5 months), $1,000 (10 months), or $1,500 (10 months) while payments are reported to all three major credit bureaus to build credit history and score. Designed for individuals seeking to establish or rebuild credit and savings simultaneously.
• Microenterprise (Business Loans) Small business loans designed for microenterprises in Tennessee communities.
• Cash/Flow Emergency credit and cash flow assistance for individuals facing unexpected expenses, with payments typically made via payroll deduction.
• Financial Coaching Free one-on-one or group financial coaching covering cashflow (budgeting), understanding credit scores, debt management, and financial fitness. Offered as a complementary service to loan clients and the broader community.
• Volunteer Income Tax Assistance (VITA) IRS-certified free income tax preparation for households earning under $70,000/year, people with disabilities, and seniors over 65, delivered through BetterFi and partner host sites such as libraries and the Urban League of Greater Chattanooga.
• Client Portal Self-service online portal where existing BetterFi clients can manage loans, view payment history, and access account information. Built on third-party loan management software and accessible at betterfi.myloanpanel.com.

Quantifiable outcome

• Clients save over $2 million total compared to predatory loans
• +3 more outcomes

Named customers2 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature3 records

Partnerships

34 partnerships are on record, tiered foundational, core, major, strategic and minor.

• South Cumberland Plateau VISTA ProjectfoundationalStrategic or Co-development PartnerAmeriCorps VISTA program sponsored by the University of the South that supported BetterFi's creation as the first 501(c)(3) started under the Tennessee AmeriCorps VISTA program. The VISTA project is dedicated to growing and strengthening communities through education and economic development initiatives.
• University of the South (Sewanee)foundationalStrategic or Co-development PartnerUniversity located atop the South Cumberland Plateau that sponsored the VISTA project and provides ongoing partnership through the Babson Center for Global Commerce and Office of Civic Engagement. Student volunteers assist with VITA tax preparation.
• Credit Builders AlliancecoreStrategic or Co-development PartnerPartnership enabling BetterFi to report payment information to credit bureaus, working for over a year on implementation. Also extended credit to capitalize BetterFi's loan fund.
• Tower Community BankcoreChannel Partner/ Reseller/ DistributorPartner providing space for BetterFi's Coalmont office. Branch manager Barry Rollins serves on BetterFi's board.
• Beneficial State FoundationmajorStrategic or Co-development PartnerSelected BetterFi as one of 20 lenders nationwide for the Underwriting for Racial Justice Lender Pilot Program - a two-year initiative to develop tools and practices to increase equitable access to fair loans for people of color.
• PlaidstrategicTechnology or IntegrationIntegration partnership planned to minimize need for applicants to provide downloaded or physical bank statements, speeding up application process and enabling BetterFi to provide cashflow insights to coaching clients.
• Franklin County LibraryminorChannel Partner/ Reseller/ DistributorVITA site host for free income tax preparation sessions for community members.
• Franklin County Senior CitizensminorChannel Partner/ Reseller/ DistributorVITA site host for free income tax preparation sessions.
• Coffee County Lannom Memorial Public LibraryminorChannel Partner/ Reseller/ DistributorVITA site host for free income tax preparation sessions.
• Coffee County Manchester Public LibraryminorChannel Partner/ Reseller/ DistributorVITA site host for free income tax preparation sessions.
• United Way South Central TNminorChannel Partner/ Reseller/ DistributorVITA partner for Bedford, Cannon, Coffee, Lincoln, Warren counties.
• Urban League of Greater ChattanoogaminorChannel Partner/ Reseller/ DistributorVITA partner site in Hamilton County for free tax preparation.
• Junior Achievement (JA) ChattanoogaminorStrategic or Co-development PartnerPartnership to deliver JA Economics for Success programming to Grundy County 8th graders covering careers, budgets, and insurance topics.
• Together for Hope AppalachiaminorStrategic or Co-development PartnerPartnership for financial coaching and education programs.
• National Community Reinvestment Coalition (NCRC)minorStrategic or Co-development PartnerFeatured partner organization for community reinvestment initiatives.
• United Way of Greater ChattanoogaminorStrategic or Co-development PartnerCommunity partner organization working on financial empowerment.
• Operation HopeminorStrategic or Co-development PartnerFinancial dignity organization providing financial education and coaching.
• Grundy County Sheriff's OfficeminorStrategic or Co-development PartnerPartnership for financial coaching programs including 7-session program at Grundy County Jail.
• The Samaritan CenterminorChannel Partner/ Reseller/ DistributorCommunity partner organization providing services to underbanked populations.
• Chattanooga Room in the InnminorChannel Partner/ Reseller/ DistributorCommunity partner for housing and financial services.
• City Fields CDCminorChannel Partner/ Reseller/ DistributorCommunity development organization partner.
• The Caring PlaceminorChannel Partner/ Reseller/ DistributorCommunity partner organization serving Grundy County area.
• Work ReadyminorStrategic or Co-development PartnerPartnership for work readiness and employment-related financial coaching.
• Northside Neighborhood HouseminorChannel Partner/ Reseller/ DistributorPartner with staff member Tina Williams providing housing and credit counseling.
• Metropolitan Ministries (MetMin)minorChannel Partner/ Reseller/ DistributorCommunity partner serving Chattanooga area.
• La Paz ChattanoogaminorChannel Partner/ Reseller/ DistributorPartner serving Latino/Hispanic community in Chattanooga.
• Lodge ManufacturingminorStrategic or Co-development PartnerLocal employer partner potentially referring employees for financial services.
• First Presbyterian Church of ChattanoogaminorChannel Partner/ Reseller/ DistributorChurch partner for community outreach and referrals.
• First Baptist Church ChattanoogaminorChannel Partner/ Reseller/ DistributorChurch partner for community outreach and referrals.
• CCCS of ChattanoogaminorStrategic or Co-development PartnerConsumer Credit Counseling Service partner for financial education.
• Catholic CharitiesminorChannel Partner/ Reseller/ DistributorFaith-based community services partner.
• Project Connect NashvilleminorChannel Partner/ Reseller/ DistributorPartner organization for financial connection events.
• Shelbyville-Bedford County LibraryminorChannel Partner/ Reseller/ DistributorLibrary partner for community outreach.
• Coffee County Manchester LibraryminorChannel Partner/ Reseller/ DistributorLibrary partner for community services.

Scale indicators15 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• Operation HOPE: Operation HOPE is a large nonprofit providing financial education, coaching, and credit counseling to underserved communities. Direct peer to BetterFi's financial coaching and credit-building mission, though at much larger national scale.
• Self (formerly Self Lender): Self is a fintech credit-builder lender offering installment products that build savings while reporting to credit bureaus. Directly comparable to BetterFi's Savings + Credit Builder program, though Self is a venture-backed for-profit while BetterFi is a nonprofit CDFI.
• Possible Finance: Possible Finance provides small-dollar installment loans to thin-file and subprime borrowers via a mobile app, directly competing in the affordable-alternative-to-payday-loans space where BetterFi operates.
• Credit Builders Alliance: Credit Builders Alliance is a nonprofit membership organization that helps lenders report to credit bureaus. It is both a strategic partner of BetterFi (capitalizing its loan fund) and a peer in advancing credit-building among CDFIs and nonprofit lenders.
• GreenPath Financial Wellness: GreenPath is a nonprofit HUD-approved credit counseling agency offering debt management plans, financial coaching, and credit education. Comparable to BetterFi's counseling/coaching arm, with deeper focus on credit counseling and debt management.

Broad incumbents

• Dave: Dave is a public financial services company offering cash advances and banking services to underbanked Americans. Overlaps with BetterFi in serving cash-strapped consumers seeking alternatives to predatory products.
• MoneyLion: MoneyLion offers installment loans, credit building, and financial tools to non-prime consumers. Operates broadly in the subprime consumer finance category where BetterFi's ReFi and Credit Builder compete.
• LendingClub: LendingClub is a large online personal loan marketplace serving non-prime borrowers with fixed-rate installment loans. While serving a somewhat higher credit tier, it competes for some of the same refinancing-from-payday-loan borrowers that BetterFi targets.

Emerging players

• Tala: Tala is a mobile-first lender to underbanked and thin-file consumers in emerging markets. Shares BetterFi's targeting of subprime borrowers with limited credit history, though operates in different geographies.
• SpringFour: SpringFour is a fintech providing financial resource referral tools used by lenders, utility companies, and nonprofits for financial wellness referrals. Adjacent to BetterFi's coaching/financial education ecosystem.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/BetterFi
• Instagraminstagram.com/betterfico
• Xx.com/betterfiTN

Compliance5 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about BetterFi