LOS ANGELES, Nov. 4, 2011 /PRNewswire/ -- WikiLoan, Inc (OTCBB: WKLI), a peer-to-peer lending platform, announced today that the Company has shifted its strategy. After months of testing, the Company plans on shifting the model to a hybrid approach to Peer-to-Peer Lending. The Company has learned that the most valuable asset is the creation of a qualified pool of borrowers. This fact has led the Company to explore ways to dramatically cut the cost of credit reports and identity verification so the Company will be able to offer borrowers the ability to apply for loans for free. The Company is aggressively pursuing partnerships and reselling opportunities for lead generation and credit counseling.
"Over the coming months, we will continue to offer our Peer-to-Peer Lending Platform in its current form while concurrently working to establish a banking relationship and move to a licensed model to attract institutional lender participation. This change will allow the company to advertise to investors, charge loan closing fees, charge a percentage for a lender administration fee, and share in interest rate spreads with a bank," said Marco Garibaldi, WikiLoan CEO.
A summary of projections based on a successful capital raise of $2 million is below:
Projected Annual Statement of Operations (3 Years)
# of new P2P loan applications
Loan Closing fees (1-5% fee on closed loans)
Lender Administration fees
Revenue from Spread (split 50% with partner bank)
Auto loan origination fees
Credit lead generation fees
Interest earned on escrow account funds
Net operating income (loss)
WikiLoan is a Social Network with a focus on finance. At WikiLoan.com, family and friends can borrow and lend money among themselves at rates suitable to their respective needs. The company's website provides repayment schedules and documentation for loans, along with proprietary administrative tools, which enable users to securely pull credit reports and automate the loan repayment process.
This release contains various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which represent the company's expectations or beliefs concerning future events of the company's financial performance. These forward-looking statements are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements. These factors include the effect of competitive pricing, market acceptance of the company's products and the effects of government regulation. Results actually achieved may differ materially from expected results included in these statements.
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SOURCE WikiLoan, Inc.