[LoanMe]

Scenario 1: APR is 254.0%
Scenario 2: APR is 78.5%
Scenario 3: APR is 43.7% -- this is a decent price from an APR perspective, but extremely expensive from a TCC perspective (another very important metric that should always be disclosed and evaluated). Since the loan is fully amortizing (I believe), it makes it even harder to pay off early given that the bulk of initial payback is interest. And what percent of your borrowers do take the loan for a year or more and pay you back early?

We are aware of your costs and of your product, which is why I pointed it out as an alternative in my message.

Carl,

Thank you for pointing out Total Cost of Capital. We appreciate the mention as an alternative and simply wanted to address the generality of your assessment of LoanMe. Everyone should understand that borrowers have the ability with the LoanMe product to control TCC, through their repayment behavior. Every business and situation surrounding the need for capital is different. The LoanMe simple interest term loan product offers borrowers flexibility they previously didn't have in alternative lending. It allows them to have more control over their TCC than a traditional MCA. All while given back a monthly payment option.

The shorter the borrower keeps the funds the better the TCC. Naturally, this ups the effective APR conversion similar to how you would convert and MCA payback number into a much higher APR than the presented "factor rate".

The LoanMe product is sold by the LoanMe internal agents and therefore we educate the borrowers on their early repayment options. Many of our borrowers do in fact pay off early, using the LoanMe product as a short term bridge loan. The longer terms (10 years) simply make the minimum monthly payments required lower (compared to MCA daily payments x 21) and more affordable for a business. It frees up cash flow and allows them to operate as needed.

Our loan agents use a web based simple interest loan calculator to educate borrowers on their TCC based on a repayment method that is comfortable for them. You are welcome to see this here: www.loanme.com/loancalculator

Good luck with your new product. Its nice to see more monthly payment products popping up in alternative lending.