OnDemand WTP Pricing Research

Does “Factor Pricing” Make Sense? | Inc.com

Forbes recently interviewed OnDeck CEO Noah Breslow and–the day before his third quarter earnings call–gave him an opportunity to address many of the criticisms hurled at his company and the short term on-line lending industry. As usual, Noah gave an eloquent defense.

At the crux of the debate is how loans should be presented to small-business owners. OnDeck and hundreds of other players in their industry insist that factor pricing makes loans simpler and clearer for businesses to understand. Other players insist on traditional APR pricing. Breslow responds that OnDeck prefers to give a dollars and cents cost because “Customers don’t find cents on the dollar confusing.”

I recently had some insight when a client we’re working with came to us after being offered a loan by OnDeck. The story goes: this small business earned $284k in 2014 with a net loss of $70k. This year has been better so far, with $586k in revenue and $80k in profits.

Read complete article here:

Does “Factor Pricing” Make Sense? | Inc.com.

Post a Comment

WP-SpamFree by Pole Position Marketing