Author: Iris Dorbian
Original Source: https://www.pehub.com/2016/01/online-lender-loannow-pulls-in-50-mln/
Orange County, California-based online lender LoanNow has secured $50 million in financing. The investor was not named.
PRESS RELEASE
LOS ANGELES, CA–(Marketwired – Jan 6, 2016) – LoanNow today disclosed its completion of a $50 million credit facility from an institutional investor that will be used to grow its expanding loan portfolio focused on non-prime, middle-income borrowers.
This investment highlights the next chapter of ongoing rapid growth for LoanNow, which has already originated close to $10 million in personal loans in its first full year of operations.
“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,” said LoanNow president and COO, Miron Lulic. “This latest financing round will enable us to scale our solution for underserved middle-income consumers nationwide.”
LoanNow provides affordable credit options to non-prime borrowers, typically with credit scores below 650, based on a traditional credit scoring range of 300-850. Its proprietary repayment motivation algorithm monitors and incentivizes an individual’s repayment and financial behavior in real-time to drive down their overall cost of credit. This dynamic loan repayment feature can reduce a borrower’s APR by as much as half depending on payment behaviors such as timeliness, consecutive payments, and securing micro co-signatories.
Every LoanNow loan is underwritten to consider the financial needs and repayment capabilities of a borrower. Loan amounts of up to $5,000 are available at transparent rates with no origination fees or prepayment penalties.
About LoanNow
LoanNow is a responsible online installment lender offering a more affordable and transparent alternative to subprime short-term loans. The company’s goal is to make better loans available to good borrowers with bad credit. The firm has developed proprietary credit-decisioning models catered to its market segment. LoanNow also considers real-time performance during the loan lifecycle. Its repayment motivation algorithm incentivizes good financial behavior, like timely payments, and awards loan credits to reduce the cost of credit during the loan lifecycle. LoanNow is a private company based in Orange County, California. Learn more at http://www.loannow.com or follow us @loannow.
