Freo-based fintech Credi – “the bank of Mum and Dad” – has announced its intention to raise up to $1.5M through Equitise…
Founded in 2017 by Tim Dean (pictured above), the WA director of Fintech Australia, Credi is a relationship lending platform that manages lending between known parties.
This means that kids can take loans from their parents, and the Credi platform takes cares of the details.
From small loans between mates, parents providing deposits for a house, investors seed funding a startup, businesses lending to directors or self managed superannuation funds lending to third parties, Credi provides the solution.
Globally, ‘lending between related parties’ is a billion dollar industry, but up to now there’s not been an easy and affordable way to formalise terms and automate the repayments of those loans.
The Bank of Mum and Dad
In Australia, the “informal bank of Mum and Dad” (and family and friends) is the fifth largest lending institution, lending over $65 billion (RMIT Research, 2017).
For first home purchases, half are funded by family and friends.
Over its two year history to date, Credi has managed loans of over $100M from 5,200 users on its platform and is currently used in 26 countries.
CEO Tim Dean held several senior positions with international fintechs prior to establishing Credi.
More than just delivering a lending platform, Credi has seen its users leverage their relationships, facilitating nil cost or low cost loans to friends and family.
Data so far reveals an average annual interest rate charged by lenders of just over 3% pa. This means repayments are generally much more affordable than commercial lending institutions, helping those that borrowed, pay off the loan quicker.
Credi is also a complete online solution that aids users in negotiating the key terms of a loan, helps with managing loan repayments through automated direct debits, email & SMS reminders, calculates interest
using a variety of methods, and allows the flexibility for loans to be amended or be repaid early.
Funding raising Campaign
Looking to raise up to $1.5 million from the “crowd” with Equitise, Tim says there is already significant interest in Credi from its 5,000 plus user base including keen international investors.
“We have Credi users all over the globe eagerly awaiting to invest in Credi, which is a great endorsement from customers who use and love our platform.
“Feedback and forums tell us that they truly believe in the product and see it as the needed disruptor to the fintech space,” he said.
Time Dean, CEO of Credi
“With Australian’s still digesting the findings of the royal commission on banking and financial services, the spotlight is on high cost credit and irresponsible lending.
“Now more than ever Credi has a competitive advantage to really create some groundswell around what we’ve created.”
Credi was inspired as a result of Tim’s own experience and allowed him as a parent to navigate his adult children away from high cost credit and teach them how to repay and manage a loan responsibility.
Credi will issue ordinary shares valued at $1 through the Equity crowdfunding platform. A minimum target of $500K is sought, up to a ceiling of $1.5M.
Co-Founder of Equitise, Chris Gilbert said Credi is the perfect startup to embrace equity crowdfunding not just because of its business model but because of its disruptive nature to the banks and other lending solutions.
“Credi has identified a massive gap in the market that the banks and other financial institutions have failed to act swiftly on.
“Tim and his team have created a truly innovative Aussie fintech that will help a variety of Australians take on a more affordable loan, helping them stay out of debt in the long run.”
Chris Gilbert, Equitise
Credi kicks off the equity crowdfunding campaign in the next few weeks, and the round is open to all Aussies over 18.
You can register interest in the offer on www.equitise.com/credi
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To learn more about Credi, visit their website; and for more on equity crowdfunding, read Nathan Rose’s piece he wrote about West Winds Gin earlier this week.
