> Better than an ISA is an income-dependent loan with some minimum amount that must be paid back regardless of the program outcome.
As for collection, I suggest structuring it as a loan, but with an 'income share' option in the contract. That is: participants are legally getting a loan, but the loan has an option to pay back less via income share. Dont pay? Then just pursue them for the loan.
> But people with high credit scores tend to have better, cheaper options than ISAs. Also, using credit scores for ISAs is... largely missing the point.
The self-selection problem is actually identical to loans. If you offered loans without checking credit score, you would end up with the exact same issue--people with poor credit would jump at the chance, and people with good credit would decline and pay upfront because they can.
> Better than an ISA is an income-dependent loan with some minimum amount that must be paid back regardless of the program outcome.
As for collection, I suggest structuring it as a loan, but with an 'income share' option in the contract. That is: participants are legally getting a loan, but the loan has an option to pay back less via income share. Dont pay? Then just pursue them for the loan.
> But people with high credit scores tend to have better, cheaper options than ISAs. Also, using credit scores for ISAs is... largely missing the point.
The self-selection problem is actually identical to loans. If you offered loans without checking credit score, you would end up with the exact same issue--people with poor credit would jump at the chance, and people with good credit would decline and pay upfront because they can.