Yet another example of “network lending” emerges.
The emerging US fintech platform Credibly today announced a partnership with JetPay Payment Services, a division of JetPay Corporation. The agreement will provide JetPay’s distribution network with access to Credibly’s credit solutions.
Based in Berwyn (PA), JetPay Corporation is a provider of vertically integrated solutions for businesses including card acceptance, processing, payroll, payroll tax filing and other financial transactions in the United States. Paul Compton, Executive Vice President and National Sales Director for JetPay Payment Services, commented:
“JetPay’s objective is to get our customers the payment processing and capital solutions they need while connecting them with partners who can deliver those solutions efficiently. The integration of JetPay’s distribution network and Credibly's customer-centric lending process will enable even more small businesses to obtain the capital they need to thrive.”
Founded in 2010 and rebranded as Credibly last June, the platform targets the entire SMB credit spectrum, offering businesses a wide range of tailored capital solutions. Since inception, the platform has funded more than 4,500 businesses in over 300 industries, providing them with more than $200 million to date. Last year, the company registered a revenue growth of 100% and has doubled its employees to 120, opening new offices around the US.
Ryan Rosett, Founder and Chief Revenue Officer of Credibly, added:
“At Credibly, we believe all businesses deserve access to right-sized capital, and our partnership with JetPay makes good on our mission to provide that access to as many entrepreneurs as possible. We’re thrilled to partner with JetPay, and help their distribution partners deliver more affordable capital to small businesses.”
This partnership follows on from a recent agreement with the Small Business Association of Michigan (SBAM), a Michigan-based association that focuses on serving the needs of Michigan’s small business community. In a recent interview, Ryan Rosett himself highlighted the importance of this kind of deal as a means of publicising the availability of online lending solutions to small businesses.
This agreement echoes the deal between Worldpay and Liberis, forged a couple of weeks ago. Worldpay partnered with merchant cash advance provider Liberis to launch a new funding scheme by the name of Worldpay Business Finance. Both deals are in effect a form of what we’ve dubbed as “network lending”. Similar partnerships include Zopa loans for Uber drivers, MarketInvoice’s integration with Sage 50 Accounts as well as the recent agreement between CAN Capital and iPayments.
Such agreements not only allow platforms to expand their customer base and thus increase their loan origination volumes, but also provide lenders with deep reserves of data which could prove an invaluable and timely source of credit information, allowing them to minimise friction in the lending process.