There appear to be a couple benifits: - It allows QFE to service smaller loans that are more common but would have previously not meet credit requirements. SplitIt guarantees these loans against a pre-existing line of credit the customer already had (e.g. their credit card). I think QFE has realised a nuance in their business that they are a payment "facilitator" not a lending agency. - It shifts the guarantee of the lending from the service provider to the customer through their pre-existing credit. I think this is a really important point because it sounds as if it has caused friction when getting service providers to use QFE's platform.
I'd be interested in understanding the fee structure. For example, if QFE gets a fixed fee decoupled from the size of a loan, then facilitating many small loans could be a much more profitable use of lending capital than several larger loans. This would make the SplitIt partnership ideal.
QFE Price at posting:
62.5¢ Sentiment: Buy Disclosure: Held
