It’s pretty easy in America to take out a loan to buy a car or a house, but what about something smaller like a new sofa or an elective medical procedure? LoanHero was created to bring a streamlined process to smaller consumer loans. Though it’s still in the EvoNexus incubator, and just started making loans in March, LoanHero has already issued over $4 million in loans. Times of San Diego spoke with Kristin Slink, co-founder and chief operating officer, about the growing consumer finance company.
Why did you start LoanHero?
Co-founder Derek Barclay and I have been in the consumer finance industry for over four years. We started off brokering over a dozen consumer finance platforms and quickly saw the inefficiencies and frustrating processes retailers had to go through in order to get their customers approved for financing. Knowing that we could use technology to create a more streamlined process, we went out and raised money to start LoanHero. With the investment from our first round, we were able to develop our platform and secure some big partnerships with both lenders and retailers.
With LoanHero, how easy is it for a consumer to get a loan at the point of purchase?
LoanHero makes getting a loan at the point of sale quick and easy. Customers can simply enter basic information into our online application and see if they qualify for one of our programs instantly, without it affecting their credit. Once they decide to move forward, it only takes a few minutes to finalize the transaction. We use technology to streamline the process, allowing the merchant to focus on their business rather than spend a ton of time processing financing applications.
In what markets you see the biggest opportunities?
LoanHero’s sweet spot is multi-location retailers in such industries as elective medical procedures, automotive repair, home improvement projects and consumer goods. To date, one of LoanHero’s biggest retailers is AAMCO Transmissions.
How are both retailers and consumers reacting to the LoanHero program?
So far we have received a lot of positive feedback from both retailers and consumers. Retailers love our easy process and friendly hands-on customer support and consumers like that our process and terms are transparent and the entire application takes only a few minutes.
You’re already making loans. What’s the total so far?
LoanHero has been live since March and has generated just over $4 million in loans. We’re currently operating in five states and are anticipating a national launch in early January. Just last month we hit our biggest monthly volume of $1 million.
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