Consumer Affairs, BillFloat

1. Consumer Affairs
Reports on BillFloat’s
Business Model
By: Billfloat

2. Consumer
Affairs
Reports
on
BillFloat’s
Business
Model
In recent months, BillFloat has been receiving press
for its programs that allow consumers to borrow small
amounts of money for short periods of time to handle
things like monthly bills. In September of 2013,
ConsumerAffairs.com profiled BillFloat.

3. Consumer
Affairs
Reports
on
BillFloat’s
Business
Model
The profile focused on the company’s business
model, which relies on the supposition that many
consumers to whom banks refuse to lend are actually
creditworthy, but that banks still cannot lend to them
profitably. BillFloat’s model reduces the costs of
customer acquisition, in part by maintaining strong
relationships with billers. It then passes those savings
on to consumers in the form of smaller fees and a
refusal to engage in refinancing and recycling, some
of the payday loan industry’s most predatory tactics.

4. Consumer
Affairs
Reports
on
BillFloat’s
Business
Model
BillFloat’s approval process also looks different than a
traditional lender’s. It avoids the use of credit scores
and pay stubs and instead looks at bank account
history, evaluating factors like when a potential
borrower gets paid and how he or she spends money,
to determine creditworthiness.