In a recent interview with LearnBonds.com, a Credibly official explained that they want to sustain its 20%-30% YoY growth by improving the products and services it offers. Jeffrey Bumbales, Director, Marketing & Strategic Partnerships at Credibly, mentioned that they are also planning to enhance their systems, and risk management to preserve their long-term position as a leader in the market.
Credibly is a company that is offering loans for small businesses allowing them to expand their solutions, products, and offers. At the moment, they are focusing on dining and retail clients but they do not impose heavy restrictions on how to use the funds.
1. The firm recently partnered with Wirecard in order to disburse instant funds and access businesses’ spending data. Why did you make this move?
“Instant fund disbursement has become expected, rather than a benefit. In order to maintain our position as a top lender in our space, we needed to be able to offer this… especially given our focus on providing a top-notch experience.”
2. Credibly offers small business loans and company financing up to $400,000. Are you planning to lift this loan ceiling?
“While our internal funding amount is capped at $400,000 internally, we also partner with numerous lenders to expand our product suite and ticket size. Today, we can actually provide up to $5M in financing for specific product types.”
3. What is the average amount you lend to clients using the platform?
“As a working capital lender, average funding amounts are typically between $55,000 and $65,000 and used to support operating expenses or to stabilize cash flows. That said, we process numerous applications each month that request both our lower and upper bounds.”
4. What are the firm’s plans over the next two years?
“Over the next two years, Credibly plans to sustain its 20% – 30% YoY growth by continually improving its product suite, technology, systems, and risk management to preserve our position as a long-term leader in the space.”
5. The decentralized finance (DeFi) market is expanding around the world. Do you think these competitors could affect the traditional lending industry?
“Like the fintech lending space, DeFi also has the potential to disrupt the traditional lending industry. Legacy players will need to adapt and collaborate in order to be successful in the future.”
6. Given that the cryptocurrency market continues to grow, do you think it is possible for Credibly to integrate crypto-related services in the future?
“Credibly is relatively open to adapting as long as it improves our ability to meet our customers’ needs. If the ability to integrate crypto-related services was a huge value-add, we would certainly find a way to do it. That said, at this point, crypto-related capabilities have not been a focal point for our customer base.”
7. You are currently operating in the US, are you planning to expand your business to other countries in the future?
“We currently partner with other lenders in order to financing in Canada and the results have been strong. We plan to continue expanding our reach, however, our internal scoring model has not yet been deployed outside of the United States.”
8. Which are the industries you are mostly serving with the loans you offer to clients?
“We have a heavy portfolio concentration within dining and retail. That said, with the securitization of our portfolio we need to be mindful of diversification to mitigate risk. We do not place heavy restrictions on industry or the use of funds, so we tend to work with a very diverse clientele.”
The firm was recently nominated for the 20th annual Banking Technology Awards for Best Use of IT in Treasury and Capital Markets award. What did the firm do right, to get this nomination?
“The funding strategy needed a new IT infrastructure for managing the transactions and for reporting the financials to the investors and third-party service providers. Effective communication and collaboration between the Finance, Data Science and Technology teams were paramount to success.”
Thank you, Jeffrey, for the conversation!