A FREMANTLE tech start-up has made a significant breakthrough into the mainstream, being signed up by a major lender.
Credi markets itself as the online “bank of mum and dad”, formalising and managing loans between family and friends, and taking away the ambiguity of “on the never never” repayment plans.
Earlier this week founder Tim Dean, who also runs the Thinklab business incubator on Market Street, announced that he’d stitched up a deal with online lender Industry Loans, which will now add Credi to the list of small-loan companies it arranges finance through.
Mr Dean says the sector has been growing quickly in the wake of the Banking Royal Commission, with the major four banks tightening their lending and forcing customers to look for second-tier options.
Credi’s cloud-based loan documentation system helps family and friends negotiate the terms of a loan, reach agreements and manage repayments. It includes an online calculator so customers can keep close track of how much loan is left to pay off.
Mr Dean says it’s estimated families and friends are loaning each other more than $50 billion in Australia every year..
He says tough economic times have actually helped Credi’s growth, as Millennials have been increasingly reliant on their parents for financial support such as putting together the deposit for a home loan or buying a car.
by ALEX MURFETT