BOSTON, Jan. 30,
2024 /PRNewswire/ -- Lendica, an embedded AI lending
company, and CSG Forte, a CSG® (NASDAQ: CSGS) company and a
leader in complete and customizable digital payments, announce a
strategic partnership to deliver an embedded business credit
solution to small and medium sized US companies.
Lendica and CSG Forte's offering, called the iBranch, is an
embedded financing service that enables SMBs to borrow money
from their software vendors instead of traditional financial
institutions.
Embedded lending, popularized by software companies such as
Amazon, Shopify, and Square, has become a growing source of credit
made available to small businesses. It is estimated that embedded
business loan origination is growing at roughly 125% year over year
and will hit an annual $500bn
origination by 2030.
CSG Forte is partnering with Lendica, a leader in embedded
lending solutions, to bring the solution to its Independent
Software Vendor (ISV) partners and their merchants.
"Traditional small business credit is very expensive with the
average borrower paying 61% APR." shares Jared Shulman, CFA, Lendica's CEO/Co-founder.
"Our embedded lending programs, when implemented effectively,
dramatically lowers rates to our customers by leveraging private
datasets for more effective underwriting and better sales channels
to cut customer acquisition costs."
Jerry Shu, the company's
CTO/Co-founder, adds that the power of AI-driven credit
underwriting shines with rich, embedded datasets that banks and
non-bank lenders struggle to process.
The benefits of embedding lending extend beyond happier and
healthier borrowers. ISVs benefit as well, earning a portion of the
fee revenue generated from their embedded lending program and
experience enhanced customer loyalty.
Through this partnership, CSG Forte's diverse range of ISV
partners and their merchants, including those in industries like
field services and property management, can benefit from an
innovative, embedded lending experience. For example, property
management merchants may leverage this easy-to-use solution to
access capital for building repairs and needed supplies or to
engage in professional services to promote their business. The easy
access to affordable capital empowers merchants and elevates their
potential for future growth.
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SOURCE Lendica Corp