Seems like the first loan or two for any borrower CAN be a little frustrating. Maybe a set, sliding scale could be implemented? As always, can be adjusted in the future based on feedback.
First loan is a feeling out for both sides. It is most likely the highest risk we have with potential borrowers. So what if we made some set parameters for the first one or two loans, something like…
1st loan is to be $1million max with 20% fees
2nd loan up to $3million with 18% fees
3rd loan, make us a proposal with a hard minimum of 15% fees
Those numbers are purely for example but it seems it would make it easier for new borrowers to jump in knowing how it works. As they gain our trust we reward them with lower fees and higher limits.
I wouldn’t want to set hard numbers like this because I think the market changes too often for them to be accurate. Instead, during the current phase where the company is working rather closely with the borrowers anyway at the beginning (KYC etc), I think they should just (and possibly already do?) suggest some parameters, e.g. “we think in the current climate that x million at y rate would get approved”. And then the borrower most likely does that and most likely gets approved, which seems easy enough for everyone?
Didnt seem to work with the last attempted borrower unfortunately. Just trying to think through an easier process that is decentralized to the community is all.
@Rockgolfer Hi Jeff, which borrower are you referring to? Thanks so much for sharing the idea. We’re actively working towards streamlining the process for borrowers and making this more efficient. The borrowers are now given guidance on loan parameters that of course is subject to vote by the community. We are most definitely stressing the need to build up credit/repayment history with TrueFi to establish trust.
I was referring to the Ovex proposal. Seems we lost them? I guess not seeing any behind the scenes it appeared they where not steered in a direction before posting. Just trying to help from a non money guy perspective.
It’s actually very helpful. Ovex is in good shape and they’ll be posting a loan for rating here shortly. We’re very focused on improving the flow for our borrowers so we can be more efficient. Any ideas are always welcome and appreciated.
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