Lesson 6 of 7

Repeat borrowers and the value of a customer over time

A borrower who comes back costs less to win and is better known than a new one. This lesson explains why lenders offer repeat and larger loans, how retention is measured, how the value of a borrower over several loans is calculated from the margin per loan, the retention rate and a discount rate, and why a first loan that loses money may or may not be worth making.

Published 16 October 2026