Will this be the next alternative form of biz financing?
Although Croovy is geared towards the mortgage space, the idea could easily be applied to those seeking business financing across the country.
There is more to group deals than discounted spa treatments or $5 restaurant coupons. When you buy together, you can save. Typically the larger the purchase, the more you save. You could save thousands on a new car without having to negotiate; save tens of thousands over the life of your home loan, or potentially save thousands of dollars in interest payments on business loans.
The basic idea behind this potential new lending/borrowing space would be:
- Join a deal.
- Share the group with other business owners, friends, colleagues.
- The more people who join, the more group buying power you wield.
- After enough people have joined, the group will remain open and bidding can begin from lenders.
- Or on the other hand, a pre-approached lender can be asked to issue a discounted loan product if a quota of borrowers are presented to them.
- Bidders compete.
- Lenders can view the group members’ loan requests, but not their contact information.
- Each lender submits a bid, which consists of interest rates, closing costs, appraisal fees and title fees for each individual loan.
With this, everyone wins. Members reap the rewards of their group deal, getting lower rates than the national average and reduced costs at every turn in their loan.
Your Turn
What do you think? Any chance this will be another alternative option for those seeking business loans?
Creative concept Joel. I like it.
nice work joel.
Interesting idea. Thanks!
Sounds cool! I could see it happening. I’d never heard of Croovy before, thanks for the info!
Sound idea but would it work for start up businesses?
Very innovative. I think that it’s a great idea.
This seems like a good idea.
Similarly, I’ve been working on doing a sort of “beta test” for my start-up because I didn’t document how I did what I did to help my customers when I initially did it.
We were more concerned with doing whatever it took to get people more customers. After looking back we saw that we could define a collection of what worked generally, provide something that scales and still meets the needs of our customers.
The idea of a “beta test” offer would be a much more in depth experience that allowed deeper access to our services and include some amazing bonuses, and it would be discounted due to the depth of the experience without any added costs.
That seems to be a great way deepen the end user experience (always good), to raise money, and to start fresh with something that scales (as you document the process along the way).
Just thinking out loud.
Dear Sirs:I happen to find your blog on the internet.How can i get this groupon-style lending,could i get the information please.
Thank you for your interest in this process Horace however at this point this is only a conceptual process.
Not Exactly, but almost perfect. Sounds great, if they are signature loans, even better, the quicker provided, the better; and much more convenient,
might cause nice steady stream of customers, honestly its what I have in mind for my customers.