After seeing close to $10 million in originations in year one, online lender LoanNow believes the combination of a unique algorithm and a new $50-million cash infusion will allow it to scale nationally in year two.
LoanNow focuses in non-prime, middle-income borrowers, mostly with credit scores below 650 on a 300-850 range. It employs a proprietary algorithm rewarding payments and the securing of micro co-signitories in real time to drive down rates. People can borrow up to $5,000 with no origination or prepayment fees.
“LoanNow has proven to be the emerging market leader in non-prime consumer lending. We are able to uniquely identify, assess and ultimately incentivize deserving borrowers that would otherwise lack affordable options,” LoanNow President and COO Miron Lulic said. “This latest financing round will enable us to scale our solution for underserved middle-income consumers nationwide.”
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