Karat Financial is bringing business banking to creators

Karat Financial, the company known for its credit cards for creators, is launching a creator-focused business banking product. Powered by digital bank Grasshopper, Karat’s banking product is a natural extension of its credit card offering with Visa. “Six years in, the problem we’re solving is still the same,” co-founder and co-CEO Eric Wei told TechCrunch. “Creators are real businesses, and banks don’t understand them.” Despite their prominent position in culture, creators still encounter hiccups when doing simple things like applying for a business credit card or opening up a bank account, even when their businesses are booming. In some cases, Wei has seen creators who make millions of dollars a year get declined when making $100 purchases at department stores. In more ambitious cases, Wei saw William Osman, a creator with over 3 million YouTube subscribers, fail to get the six figures in credit he needed to put on the Open Sauce convention. Karat stepped in, gave Osman the credit ... Read full article.