[Michael I]

In terms of the actual APR, LoanMe is one of the least expensive products in our space. It just looks brutal because most people don't disclose APR to their merchants.

Not really their rates can go as high as 149 percent ( I believe the lowest is 24 and a 5 percent origination fee )
Monthly is a big plus
But compare to a 1.3 factor for 12 months it is more expensive.
Now I do get that a 1.3 is not 30% apr as merchant is making daily payments but it is a lot less then 149%

[LoanMe]

Not really their rates can go as high as 149 percent ( I believe the lowest is 24 and a 5 percent origination fee )
Monthly is a big plus
But compare to a 1.3 factor for 12 months it is more expensive.
Now I do get that a 1.3 is not 30% apr as merchant is making daily payments but it is a lot less then 149%

Michael- Comparing a 1.30 factor to our 149% rate, probably isn't the best example.

Lets compare a $10k 1.35 factor 6 month term to our 94% rate product (Term Loan C).

MCA Example
Amount: $10k
Factor: 1.35
Term: 6 months
Daily payment: $107= ~$2250 monthly responsibility
Payback: $13,500

LoanMe Unsecured Term Loan C (Daily accruing simple interest)
Amount: $10k
Rate: 94% per annum
Term: 120 months
Monthly Payment: $783.43
Payback: $93,960 (We suggest borrowers pay off early saving interest charges)

If the borrower pays the same monthly amount as the MCA example above, watch what happens to the Term and Payback amount.

Loan Amount: $10k
Rate: 94% per annum
Term: reduces to 6 months (based on $2250 monthly payments)
Monthly Payment: $2250 (using same monthly responsibility as the MCA example above)
Payback: $13,438.53 pretty close to the MCA example above.

Bottom line is the LoanMe product is more flexible with monthly payments, no pre-payment penalties and the ability to let the borrower choose to:
1.) Make minimum monthly payments and pay off early in one lump sum which stops accrued interest
or...
2.) Make larger monthly payments reducing the Term and Interest charged.

[Zach]

Not really their rates can go as high as 149 percent ( I believe the lowest is 24 and a 5 percent origination fee )
Monthly is a big plus
But compare to a 1.3 factor for 12 months it is more expensive.
Now I do get that a 1.3 is not 30% apr as merchant is making daily payments but it is a lot less then 149%

You are correct with your example... and there are some examples where LoanMe is the best product available.

Quick breakdown:

1.3 for 12 months is around 54% APR. LoanMe could beat that, but it would have to be a solid approval for them (obviously the client isn't a bad borrower if he qualifies for 1.3 for 12).

...But let's say you have an approval at 1.4 for 6 months (150% APR), and LoanMe approves the same deal. In this case, LoanMe would be a better solution for the client.

Try them out sometime! They fund fast (no joke, just a few hours) and fund deals that are difficult to place elsewhere.