Spotloan: Case Study, Company Profile, Founding Team, and Many More

Introduction:

BlueChip Financial, a tribal lender, owns Spotloan, an internet loan provider that provides short-term personal loans with set payments. With durations of up to 10 months, it offers loans with values ranging from $300 to $800.

You should be aware that the annual percentage rate, or APR, of a short-term loan from Spotloan may be significantly higher than those offered by other personal loan providers.

Your APR with Spotloan might reach 490 percent, which is more in line with the APR you’d see from conventional payday lenders, depending on your circumstances. Keep in mind that the National Consumer Law Center suggests a maximum reasonable interest rate of 36%. Therefore, study the terms of any loan before applying and ensure that the payments are within your means.

Spotloan (Image Source: marketrealist.com)

Company Highlights:

Company Name	Spotloan
Headquarter	Palatine, United States
Industry	Banking/ Loan Provider
Founded	2012
Founder	Douglas Merrill and Shawn Budde
Website	https://www.spotloan.com/

Spotloan About:

The Turtle Mountain Band of Chippewa Indians of North Dakota, one of the biggest federally recognized Indian Tribes in the US, owns Spotloan as a brand. BlueChip Financial is a tribally owned company that is run in accordance with the regulations of that tribe.

On the reservation of the Tribe, the corporation does business out of Belcourt, North Dakota, where it also maintains its corporate offices. Spotloans are short-term installment loans that can be repaid over a three- to ten-month period and have a maximum loan amount of $300 to $800.

Industry:

If your loan application is accepted, the funds may be put into your account that day or the next business day. However, the length of time it takes you to access your money may differ depending on your bank.

To apply for a this loan, your bank account must be open and capable of receiving electronic funds transactions. If you’re interested in learning more about personal loans or money management, Spotloan has educational material on its website.

All states except Alabama, Alaska, Arizona, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington, Wisconsin, and Wyoming do not offer this loans.

Founder & Team:

Spotloan Founder (Image Source: en.wikipidea.org)

Douglas Merrill and Shawn Budde launched it in the United States in 2012. The co-founder and founder of two businesses is Douglas Merrill. Co-founder Shawn Budde founded one business and invested as an angel in another.

Startup Story:

It has given nearly 500,000 loans to tens of thousands of Americans in need since it was founded in 2012. Excellent customer service is Spotloan’s first priority, and it’s all provided by the reservation’s contact center in Belcourt, North Dakota. Customers frequently give Spotloan 4 and 5 stars in polls on their satisfaction. Being an online lender for loans gives you an edge.

Mission & Vision:

The Native American Financial Services Association (NAFSA) supports tribal sovereignty, advances ethical financial practises, and broadens economic opportunities in Indian Country for the benefit of tribal populations. A significant issue in the US is a lack of financial education and literacy. As a platform that empowers and incites everyone to take charge of their money, Spotloan is pleased to provide financial literacy tools on behalf of NAFSA.

Name & Logo:

Spotloan Log (Image Source: spotloan.com)

Business Model:

Quick Disbursal: The finest feature of personal loans is how quickly they are disbursed. In 15 minutes, a personal loan can be issued. Your account receives a straight transfer of the loan’s amount.

Report: Receiving a spot loan will improve your credit score. The second issue is that your CIBIL is mostly dependent on your active loans, even if you are just utilizing a portion of them. After obtaining a personal loan, you can check your CIBIL.

To qualify for a spot loan, you must complete your KYC with a working email address and cellphone number. However, in order to qualify for the personal loan, you must have an active bank account. For people in need of immediate cash, these loans are advantageous.

Interest rates: Compared to other loans, personal loans have fairly high-interest rates.

Revenue Model:

It’s revenue is $6.1 Million.

Products & Services:

Spotloans are a costly type of financing that should only be used for urgent necessities. These loans are intended to assist borrowers in covering unexpected costs including rent, medical bills, auto repairs, and work-related expenses.

Spotloans are not intended to address longer-term credit demands or other financial needs; instead, you should think about borrowing from friends and relatives, using a credit card cash advance, utilizing a home equity loan, or even saving money.

If you find yourself in a bind and want cash for an unexpected cost, Spotloan’s short-term installment loans may be an alternative to traditional payday loans, which often have a shorter repayment schedule, or title loans, which can be problematic since you use your car as collateral. If your credit is strong or you need a larger loan amount, you should research lenders.

Funding & Investors:

• There have been no financing rounds for Spotloan as of yet.
• There are no institutional investors in Spotloan.
• There are no angel investors in Spotloan.

Employees:

It has 2 current employee profiles, including Co-Founder Douglas Merrill.

Challenges Faced:

There are no details of it. But due to high repayment, it faces illegality issues.

Acquisitions:

There is no acquisition happened yet.

Growth:

Spotloan Login (Image Source: in.pinterest.com)

Spotloans are created to assist you with managing crises like rent, medical bills, auto repairs, and work-related obligations. Alternative types of credit, such as borrowing from friends or family, utilizing a credit card cash advance, applying for a personal loan, or using savings or a home equity loan, may be preferable for you if spot loans are not meant to address longer-term credit or other financial requirements.

Partners:

There are no partner details for SpotLoan.

Competitors:

• Loans for Poor Credit, eAKloan.com, Oakpark, and installment loans are the main rivals.
• Among its 44 active rivals, Spotloan is ranked tenth.
• While one of its rivals has been operating, one is sponsored.
• Overall, 31 investors participated in 5 investment rounds that totaled over $435 million for Spotloan and its rivals.
• In the whole competition set, there is a single private unicorn.

Awards & Achievements:

No awards have been given to it.

Future Plan:

There is no data of it.

FAQs :

What does Spotloan do?

Online flexible installment loans up to $800 are offered by direct lenders Spotloan. The borrower may choose the size of the installment payments, which are due in biweekly installments. They are less expensive than payday loans because the maximum interest rate is 490 percent APR. A tribally held company called BlueChip Financial is the owner of the this brand.

When was Spotloan founded?

It was found on 2012.

Who is the founder of Spotloan Corporation?

It was made by Douglas Merrill and Shawn Budde.

Who is the CEO of Spotloan Corporation?

The CEO is Douglas Merrill.

Who are the main competitors of Spotloan?

Major competitors are Loans for Poor Credit, eAKloan.com, Oakpark and InstallmentLoanz.

Is Spotloan a hard inquiry?

When you apply for a Spotloan, we do a soft inquiry, so it won’t lower your credit score.

Is Spotloan reliable?

On the Better Business Bureau’s website, Spotloan has a rating of 1.45/5 stars. The company also has over 22,000 reviews on Trustpilot. Their average rating is 4.4. However, one thing to note is that Trustpilot allows companies manually to invite customers to write reviews.

Does Spotloan go on your credit?

No, it doesn’t report monthly payments to the three main credit bureaus. However, Spotloan does use consumer reporting agencies like CL Verify, LexisNexis, Thread Matrix and eBureau. If you’re looking for a loan to show in good standing on your credit report, consider OppLoans.

Does instant loan affect credit score?

One thing that you should note is that personal loan apps affect your credit score the same way a conventional loan would. If you were unable to repay a loan, regardless of the source of the loan, then your credit score will decline.

Is instant personal loan safe?

Instant loan apps are mobile applications that provide loans quickly and easily to users. However, there have been cases of loan scams and data theft with such apps, making it necessary to be cautious while using these apps.

Conclusion:

To sum up, the realm of personal finance is complicated and sometimes confusing. The abundance of alternatives, which range from payday loans to conventional bank loans and everything in between, can quickly overwhelm one. Spotloan, which offers hassle-free, rapid, and cheap loans, is one of the newest participants in this crowded sector. Is it, however, your best option?

You alone are capable of responding to it. It’s critical to take the time to do your research, read reviews, and thoughtfully take into account your own needs and circumstances as with any important financial decision. Remember that while Spotloan could be a good choice for certain people, it is not a cure-all for money problems. In the end, knowledge, preparation, and a dedication to wise spending and saving are the keys to effective personal finance.