Credit intelligence firm Pepper Advantage and tech firm Clay Technologies have formed a joint venture to create a credit platform that allows companies to lend to customers.
The firms say Clay’s brandable credit platform will be integrated with Pepper Advantage’s proprietary loan management and data analytics.
The move will allow UK companies to launch their own lending programmes – complete with loan origination, loan servicing compliance, technology and debt funding.
The firms say: “Many businesses, including fintechs, start-ups, and large corporate enterprises, are looking to launch lending programmes to drive business growth.
“These firms want to offer their customers access to credit, such as personal loans, credit cards, or invoice factoring, to help fund everything from home improvements and automotive costs to assisting in consolidating and refinancing higher-interest debts.”
The firms point out that Clay’s platform will manage origination, underwriting, compliance, and servicing, “within a client’s app, without the need to redirect users to a third-party.
“This allows clients to prioritise front-end development and growth, while leaving Clay to manage the heavily regulated back-end processes.”
The move comes after Pepper Advantage invested an undisclosed amount of seed funding in the venture.
Pepper Advantage manages over $55bn (£43bn) in assets across nine jurisdictions spanning the UK, Europe, and Asia Pacific.
Pepper Advantage chief executive Fraser Gemmell says: “We continue to develop proprietary credit management technologies and advanced data and analytics to increase efficiency and expand credit access to clients underserved by traditional lenders.
“Clay’s platform will help companies access the capital, technology, and service offering they need to provide smart credit to their customers.”
Clay founder and chief executive David Yalland says: “We understand the hurdles companies of all sizes face in offering embedded credit products — from dealing with fragmented service providers to navigating the tough road of accessing debt capital markets, particularly as banks and debt funds often shy away from early-stage lenders.
“Our joint venture with Pepper Advantage, forming the foundation of our comprehensive platform, will significantly streamline the process for these companies to introduce their own branded offerings.”
