Reverb News

Reverb Introduces New Financing Program
for Buyers and Sellers

CHICAGO, June 3, 2015 - Reverb.com, the leading online marketplace for musical instruments and gear, introduced financing on Reverb today for credit-worthy buyers who are without credit cards or who have insufficient credit history. The new short-term financing option, made possible through a partnership with San Francisco-based alternative lender Affirm, will also help dealers sell more gear by growing Reverb.com’s pool of capable buyers.

“Musicians tend to be non-conformists with less traditional career paths, but that doesn't make them bad lending candidates,” said David Kalt, founder and CEO of Reverb.com. “In fact, for working musicians, instruments are the tools of their trade, and an asset that will provide value for many years. Now, thanks to Financing on Reverb, musicians can buy the tools they need to be successful.”

In fact, for working musicians, instruments are the tools of their trade, and an asset that will provide value for many years. Now, thanks to Financing on Reverb, musicians can buy the tools they need to be successful.

Most lenders base loan decisions on a consumer’s credit score and income. Affirm takes a more sophisticated approach, using data science in credit-scoring algorithms that combine credit history, social media data and other relevant factors to address the credit-worthiness of individuals with imperfect credit. Loan terms are three, six, or twelve months, with annualized interest rates as low as 10 percent.

“As a marketplace, Reverb.com needs a liquid market, and a big part of liquidity is the availability of credit,” said Brad Selby, VP Merchant Services at Affirm. “There are millions of people in the U.S. who, while credit-worthy, are underserved by banks and credit card companies. They are young, their income streams are unpredictable, or they just don’t want to hold credit cards.”

During an initial trial period in April, Reverb.com found that musicians were very willing to finance gear purchases, particularly for “used” instruments which are more difficult to finance.

“A typical Reverb Customer is a travelling musician whose amp just blew out at a gig,” said Kalt. “When a replacement amp costs $2,000 and they don’t have easy access to cash or credit, Financing on Reverb gives them three to twelve months to pay off the amp, making it a more manageable purchase.”