Friday, December 16, 2005

New Features Coming Soon

Well, we've been live for a few weeks now and the response has been great so far. Thanks to all of you who send us feedback -- we really appreciate it. I wanted to let you know what we're working on in the way of new features.

In the next few weeks, LoanBack will let you...

1) Secure your Notes with collateral. Many of you are borrowing and lending money to buy new or used cars. An auto loan is a good example of a loan that should be secured with collateral. When you secure your Note with collateral (in this case, the car), the Lender should feel more comfortable because he gets something of value if the borrower doesn't repay the loan. The good news for the borrower is that when they agree to secure their Note with collateral, they can confidently ask the lender for a lower interest rate since the loan is now less risky.

2) Add Late Payment Fees to your Note. It's always a good idea to have some kind of penalty for late payments (sorry borrowers, but it's true). You'll have the option to define "what's late" as well as determine the late payment fee amount.

3) Allow Lender to transfer the Note. This is a nice feature for those Lenders out there who want to sell their Note. Some of you out there who loan money may wish to literally sell your loan to another party. There are business out there (like this one) that will by your Promissory Notes. Of course, there are also Collections Agencies out there that specialize in collecting debt (ouch!).

4) Allow for additional loan terms. You'll be able to create custom sections of the Note to add any custom terms you may want to include.

5) Allow for multiple borrowers and lenders. In some cases, personal loans may include more than one borrower or lender. We will soon be able to document these types of situations.

So that's pretty much it for the next release of the product. If you have other feature ideas, please send them to us! We love to hear from you.

Hill

2 Comments:

At 6:30 PM, Blogger Shreesha Ramdas said...

Hi Hill,
I am not sure whether you are already aware of Bill Monk (https://www.billmonk.com/). Looks to be in similar space.

Regards
Shreesha

 
At 2:57 PM, Blogger Hill said...

BillMonk is actually doing something a little different than LoanBack. BillMonk is essentially an accounting application for tracking small personal debts (e.g., dinner bills, beer money, etc.). Generally speaking, these debts (or as BillMonk calls them, "Social Money") do not accrue interest and given there relatively small size, there is no need for legal documentation.

LoanBack provides customized legal loan documents to people who want to formalize a loan between someone they know. These loans are commonly referred to as "friends and family loans" and range anywhere from $500 to $500,000 (that we've seen on www.LoanBack.com). Given the larger loan amounts, it's generally a good idea to get these loans "in writing" as they say.

 

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