Most websites that handle loans and other financial activity are focused on banks. LoanBack provides users with a way to manage, monitor and create a binding loan agreement with a friend or relative. The site is simple, easy to use and does not contain confusing language or financial lingo. Users can create a loan agreement, use the LoanBack calculator to determine interest, find agreeable terms, and then track the loan. A restructuring feature is also available in case updates need to be made to the original terms. Friends and family members can loan money to each other with confidence and something to back up the transaction.
LoanBack was created by Hill Ferguson. Ferguson has spent a decade working on new payment services. His other endeavors include a position as Vice President of Product Management and Marketing for Echovox. Ferguson also spent time as General Manager of Yodlee’s Personal Finance Products. His experience in the field of finance and development has allowed him to create a functional tool that is easy to use and fills a much needed niche.
Rather than sticking with the commercial side of lending, LoanBack approaches it from the personal side. Friends and family often lend money to one another, going on the other person’s word that the money will be paid back. In some cases, the amount may be quite high. Verbal agreements can often be misunderstood or ignored, which can lead to problems when it comes time to pay back. LoanBack helps simplify the process, set clear and concise terms that both parties can understand, and eliminates miscommunication. Users can easily monitor the loan and make changes as necessary.
Even though LoanBack approaches lending from a more personal angle, the site is very professional. LoanBack offers up simple tools that are well organized and easy to navigate. Anyone can quickly get the hang of the site and begin creating loan agreements that are straightforward. The site also provides an organized list of informative topics about personal lending under the Personal Lending 101 header. Getting started involves filling out a few basic pieces of information that allows the user to begin building terms that are acceptable for all involved.
A new user can register for LoanBack by clicking on the green “Register” link at the top right hand corner of the homepage. The registration form asks for a first name, last name, email address, and password. After submitting the information, the user can click on the dark orange “Continue Building Loan” button to get starting creating a loan agreement.
LoanBack provides users with the option of two products. The first is the purchase of loan forms. The forms run about $15 and have been prepared by attorneys. Users can download purchased forms as a Microsoft Word file. The form is easy to use and legally binding in all 50 states. The second option LoanBack users have is to purchase LoanBuilder for about $30. This option allows users to customize loan agreements and generate promissory notes. LoanBuilder also includes interest rate guidelines, repayment schedules, supports custom terms, an online filing cabinet, optional email payment reminders and other alerts, collaboration tools, and a PDF version for a physical signature. The LoanBuilder option also handles all calculations for the user.
Anyone who is planning on loaning money to a friend or family member can benefit from using LoanBack. The agreement can remain legally binding and both parties can stay informed throughout the repayment process. LoanBack is also affordable, which makes it even more attractive for personal loans.