The 2017 edition of fSpace Talks began with Juan Vazquez & Patrick Green sharing what they do at Credi.
Juan shared some interesting statistics that most people might not be aware of:
- Over 2.3 million businesses start up in the US are funded each year with loans from friend, family or business colleagues
- The average loan amount is $23,000 (USD)
- In Australia alone, over $1.6 billion (AUD) is loaned each year between family, friends and business colleagues
- In the UK, 40% of deposits for first time home buyers are provided by friends
This type of lending outside of banking and other structured channels is often informal and can create problems. Questions or misunderstandings about repayment amounts or schedules can damage relationships.
Credi was founded and started by CEO Tim Dean (who also works from fSpace with the team) in May 2015 to help facilitate relationship lending and protect those relationships. Credi does this by adding structure and compliance as they automate the lending process.
Credi has created a loan builder application that allows the lender and borrower to input the amount, the repayment schedule (time & frequency) and an interest rate if they wish. The parties can share the loan with anyone including family members, friends, business associates, or other entities such as trusts and SMSFs. Business professionals such as accountants and financial planners will be able to manage the process as well for their clients.
Once the parameters are agreed to, the parties eSign and Credi generates a legally binding contract. Credi then manages the loan for each party by tracking the repayments, creating alerts as desired. Credi also allows for amendments to be made including changes to the loan, payment deferrals or even forgiving the loans.
While there are some other tools in the marketplace to deliver template legal loan contracts, Credi is the only one that combines delivers a complete start-to-end process into one friendly environment.
Credi has a larger team behind the scenes with 8 other people contributing in areas such as legal, programming, advisors, and operations. This includes collaboration with Letty Tan, a bookkeeping who also runs her business from fSpace.
Much like companies like Airbnb, Credi does not handle any money – only the agreement services and management of the loan repayment schedule.
Credi is currently in the beta-testing phase of their rollout strategy and they are excited with their formal launch coming in the next couple of weeks.
Thanks to Juan & Patrick for the presentation & best of luck to the Credi team with their launch!
Visit credi.com for more information.