We use our 16 years of industry experience to create a high reward environment for investors. eNet Funding’s underwriting process is extremely refined, leading to much lower default rates, but should a default occur, we absorb 100% of the risk.
Obtaining small consumer loans can be a pain. Especially for those with poor or no credit. Additionally, in today’s modern world, most consumers prefer the convenience of going online to obtain small dollar loans rather than driving to store fronts.
eNet Funding has developed the perfect solution to address these needs.
Our model is straightforward: We pay outside investors a fixed rate of return and use their money to loan out to consumers for a much higher rate of return. Loans typically range from $300-$1,000 and are all executed online at the consumer’s convenience. Interest rates start at 36% APR and can go as high as 391% APR in some states. The riskier the consumer, the higher the APR.
This solves all problems listed above:
At eNet Funding, we minimize risk as much as possible. To establish long-term relationships with our customers and allow them to build a solid credit rating with our company, we reward them with lower interest rates after they pay off their first loan successfully.
So what does the process actually look like for both investors and borrowers?
To start, we only allow Accredited Investors to participate. You can make an investment anywhere between $5,000 to $200,000. After 61 days, the interest will start to accrue and we will remit payments to your bank account once a month. These payments can be interest only or fully ammortized repayments of the note. This 60 period allows us time to acquire customers and to loan out your capital.
The unique part of this process that doesn’t exist anywhere else: your return is not subject to default risk of the borrower. eNet absorbs that risk and will continue to pay our investors their fixed-rate return.
This is what separates us from peer-to-peer lending sites such as Prosper or Lending Club. Peer-to-peer means investors are actively participating in the individual loans. If there are defaults, investors participate in that default. Our approach is much simpler and investors don’t have to worry about choosing winners and losers.
Borrowing from eNet Funding is a trade off: our interest rates are high, but we’re willing to loan small amounts up to $1,000, something not easy to obtain, especially for those with poor credit, who we are also happy to accept as customers.
Our goal is to help borrowers build their credit over time and work towards lower interest rates.
Because fraud will always be a concern with online applications, we have developed a very refined underwriting process using the latest technology to detect fraudulent applications instantly.
This process has been quite successful: we have relatively low default rates for an online lender versus industry competitors: 15% vs 30-35% respectively.
You know that we serve small loan seekers and poor credit or no credit history consumers, but who specifically can benefit from a service like eNet? People like Mary and Berry.
Mary is a 39-year-old single mother of two. One day, her car breaks down and she unexpectedly finds herself in need of $400 for repairs. She has been at her job for two years and makes $35,000 a year, but only has $300 in the bank and other bills to pay. Mary needs to take out a small loan of $400. eNet Funding will loan her the $400, allowing her to make monthly payments over the next 5 months to repay us.
Berry is a car salesman at a large Ford dealership. This past January, snow blanketed his lot so new car sales were very slow. He only made $1,800 instead of his average of $4,500. He finds himself in need of $800 to cover his mortgage. eNet Funding loans Berry $800 and he pays it off within 60 days.
eNet is an alternative investment strategy with higher than average returns for Accredited Investors. The consumer finance industry is a high-risk, high-reward business, but with eNet’s experience-driven underwriting process and ability to absorb all loan default risk, we leave investors with nothing but high rewards.
Investors can see returns as high as 16% based on their investment amount.
eNet Funding has established a scalable online business model. We have developed several profitable lead channels and use our 16 years of underwriting experience to acquire profitable customers. We can acquire customers for $250 and those customers have a lifetime value of over $2,500.
Lastly, we are a profitable company with zero burn.
Please see the Business Plan tab of this profile for full funding details.
Clay is the President and Founder of eNet Funding. He has 16 years experience in the consumer finance industry and oversees 5 storefronts in addition to this marketplace lending venture.
He is a successful entrepreneur and seasoned CEO, having started and sold 3 different companies, 2 of which were in the financial industry. He is very passionate about the consumer finance industry because of the ability to help customers when they are in a time of need.
After recognizing the growing market shift from traditional storefront lenders to online, he decided it was high time to join the fray. Since then, the industry has been experiencing an explosion in online lending. The timing is optimal to build large portfolios of these loans.