In a deal that will help the company better serve its non-prime, middle-income customer base, LoanNow has secured a $50 million credit facility from an undisclosed institutional investor.
LoanNow’s President and COO Miron Lulic credited his company’s ability to “uniquely identify, assess and ultimately incentivize deserving borrowers that would otherwise lack affordable options.” The financing comes in the wake of LoanNow announcing it was nearing the $10 million mark in terms of personal loans originated in its first full year in operation.
LoanNow CEO and co-founder Harry Langenberg demonstrated LoanNow Group Signing at FinovateSpring 2015 in San Jose.
LoanNow specializes in providing financing options for borrowers with credit scores of 650 or less. The company’s platform monitors borrowers’ financial behavior, rewarding timely and consecutive payments, and the addition of micro-cosignatories. LoanNow says its dynamic loan-replayment process can result in APR reductions of as much as 50%. Loans are available up to $5,000, with terms of up to 48 months.
Currently available in five states, LoanNow expanded to New Mexico in August and to Utah in June. In July 2015, the company earned a spot in Orange County Business Journal’s “Best Places to Work in Orange County 2015” roster.
Founded in June 2013 and headquartered in Santa Ana, California, LoanNow demonstrated its group signing feature at its Finovate debut at FinovateSpring 2015.