How they describe themselves: LoanNow is a responsible lender with a mission to help good people get better loans. Pioneering the concept of “motivational lending,” LoanNow offers deep subprime borrowers the opportunity to reduce their cost of credit over time. This is possible through our proprietary repayment motivation algorithm that incentivizes good financial behavior. Positive behaviors, like timely payments, can unlock loan credits to lower computed APR during the loan lifecycle. Successful borrowers will also build their LoanNow score to qualify for better terms on future loans.
How they describe their product/innovation: LoanNow debuted a groundbreaking new form of loan co-signing called “Group Signing” as part of its motivational lending platform. Group Signing amplifies the traditional benefit of a co-signer by leveraging crowdsourcing technology to share the risk among a broader group of people in smaller allotments. This lowered risk profile allows LoanNow to actively pass along its own risk savings in the form of a lower APR during the loan lifecycle. Combined with other active APR reduction incentives LoanNow now offers, Group Signing has the potential to save borrowers significant amounts of money in interest payments.
Product distribution strategy: Direct to Consumer (B2C)