The Platform Powering “The Bank of Mum and Dad”, Credi, Seeks Expansion Capital for Its International Rollout

Credi.com is an Australian financial technology business targeting an investment of $500k to facilitate its expansion into New Zealand, United Kingdom and the United States.

KEY TAKEAWAYS:

• Credi.com is appealing to Australia’s network of sophisticated investors by working through Wholesale Investor.com, a private investor platform with a 17,000-strong network.
• Credi.com is an efficient, cost-effective means of formalising loans between family members, between friends and between businesses that removes the stress, the heartache and the potential for legal action.
• The platform allows users to negotiate the terms of a loan and, once agreed, provides formal loan documentation.
• Credi calculates the repayments and the interest, sending out reminder notices and allowing repayments to be modified according to cash received.  The terms of the loan are fully flexible to match the requirements of the borrower and lender.
• Consumers can use Credi to formalise a single loan for free. Thereafter each loan is $99.
• Tim Dean is available for interview.

“Credi’s success in Australia has surpassed all of our expectations.  We now have over a thousand users putting through $28 million of loans on our platform,” said Credi CEO Tim Dean.

“It has given us the confidence to go to the market and raise the capital we need to hang our shingle across the Tasman and in the Europe and America,” he said.

Mr Dean believes that raising capital for his relationship-lending platform through Wholesale Investor is an astute move as it directly engages the most important segment of their target audience, the potential users of Credi.com.

“High net worth individuals are constantly called upon to lend money – to family, to friends, to start-ups. Our platform enables a cost-effective, highly efficient means of documenting the loan and removing the embarrassment and the anguish.

“We’ll be inviting interested investors to use Credi.com as part of the application process for no charge. They’ll be able to make first-hand assessment of the product in which they will be investing.”

“We want to take the pressure off families by turning informal agreements into credible, manageable and formal ones by keeping properly completed documentation in a single place as well as looking after repayment schedules and reminders.”

Mr Dean created Credi after many years of running his personal branch of the Bank of Mum and Dad.

“Like all parents with grown-up children I was always being asked for money for everything from a phone and a replacement laptop to a new car,” said Tim.

“So instead of simply handing over cash to my son when he asked for money for we made an agreement through Credi.  We barely spoke about it.  Not only did it remove the embarrassment and relieve stress it is also teaching him about financial responsibility.”

Mr Dean says that Credi has taken off because of the challenging economic environment and the inability of banks to respond sympathetically, especially in the crucial area of housing.

“The only way that most young people will be able to own their own home is with a substantial loan from their parents.  So, the Bank of Mum and Dad is playing a crucial role in both the economy and maintaining social cohesion.”

Also driving the success of Credi is the ease with which it can be used.

“The platform we’ve built is so flexible and user-friendly that the two parties can set up a loan in a few minutes and with a myriad of options.”

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About Credi:  

Credi is a financial technology business, not a marketplace lender. The company’s mission is to change the way people lend money. They want to empower people to help each other and take control of their financial relationships without creating friction and stress.