The Credit Junction is a technology-enabled, online marketplace lending platform focused on providing working capital and supply chain financing solutions. AltFi provides market-leading news, opinion, insights and events for the rapidly-growing alternative finance and fintech community. Our core focus is on disruption to lending, banking and investing, including alternative lending, challenger banks and digital wealth management.
- LQD’s PPP Forgiveness Platform monitors PPP Loan Portfolios and the completion of applications.
- He has been an operational and financial executive at primarily high-growth companies within the technology, financial services and infrastructure industries for the past 15 years.
- The implications of this type of data-powered lending are vast when you think of what is possible at scale.
- In addition, the events that change the model become available in real time or close to it.
Michael has assembled and leads a team to fulfill his vision of revolutionizing small business lending. He has been an operational and financial executive at primarily high-growth companies within the technology, financial services and infrastructure industries for the past 15 years. Michael started his career in corporate finance at Salomon Brothers. He holds a Bachelor of Science from Cornell University and an MBA from the Stanford Graduate School of Business.
Chief Executive Officer And Co
The implications of this type of data-powered lending are vast when you think of what is possible at scale. The management of risk in general for an entire portfolio of existing products can dramatically improve. To access all the content for free, please sign up by entering your email. LQD’s PPP Forgiveness Platform monitors PPP Loan Portfolios and the completion of applications.
The challenge for any new vendor in financial services, and especially in banking, is to sell into an environment that is risk-averse, highly regulated and audited, and slow to change. If you can penetrate these barriers and land and expand, you find yourself with a great business. As the the product and market fit becomes more clear, The Credit Junction will find itself now facing the challenges of being not just a tech-enabled lender, but an enterprise company selling into the financial services market.
The Credit Junction, Llc
The company has been focused on the lower end of the mid-market and just secured $150 million more capital to lend. New types of lending and credit products will become possible because the risk profile of the borrower can be determined in detail. Please enable JavaScript or switch to a supported browser to continue using twitter.com. In addition, the events that change the model become available in real time or close to it. When collateral values are changing, the sooner you act the better your ability to preserve the value of your loan. In addition, risk models with expansive scope involving not just a borrower, but third parties, supply chains, and logistics will provide validated metrics on orders, payments, and more.
By looking at the data over time, lenders can also spot trends earlier and develop models from historical data that predict future performance and correlate variables. If lenders adopt this real-time, high-resolution form of underwriting and monitoring, it is now clear it will have many benefits that go beyond those I initially considered. The Credit Junction has the advantage that many startups do when attacking an established space. Seltzer was able to start over and build his platform in the cloud as a SaaS application, based on microservices, and with proprietary technology for handling some of the hardest parts of the process such as data ingestion. This makes The Credit Junction’s software easier to adopt than previous generations and far more adaptable because it’s built on a set of modern APIs for integration and extension. Up until now, The Credit Junction has been acting as a lender, making loans using its real-time, high-resolution underwriting model funded with capital from its investors.
Michael Finkelsteininvestments
)–The Credit Junction, the first data-driven, asset-based lender for small and mid-sized businesses, has secured a $23 million growth equity investment from Century Equity Partners. Century focuses on making investments in lower middle market companies that have demonstrated value propositions to the financial services industry. This investment provides The Credit Junction with growth capital to expand its ability to provide financing solutions to Supply Chain America, as well as commercialize its proprietary data and risk analytics platform. )–The Credit Junction, the first data-driven, asset-based lender for small and mid-sized businesses, has secured a $23 million growth equity investment from Century Equity Partners (“Century”). The Credit Junction (“TCJ”) is the first data-driven, asset-based lending platform that is reinventing the way small and mid-sized businesses access working capital, growth and supply chain financing solutions. TCJ combines technology and data intelligence with traditional asset-based credit metrics and offers up to $7.5 million in capital availability.
Seltzer predicts lenders will now manage exposure cost-effectively, across an entire portfolio, by looking at the detailed collateral underneath all of their loans. Indeed, talking to Seltzer recently about what this high-resolution view makes possible made me realize that the context I focused on in previous articles was too small. In my previous examination of The Credit Junction, it seemed that the only thing the borrower could get if you introduced this high-res, real-time lending model into an existing relationship was a lower rate.
Seltzer said that once borrowers understand how The Credit Junction is creating a real-time, high resolution view of their businesses, they start to become more aware of the importance of metrics and data in other areas of their business. Usually the borrowers then start creating their own models of business activity, which helps improve management and growth. Michael Finkelstein is the CEO & Founder of The Credit Junction. Michael received a Bachelor of Science from Cornell University and an MBA from the Stanford Graduate School of Business. and/or held executive positions across companies within the technology, financial services and infrastructure industries. Seltzer says lenders generally know what they want to know but they can’t get that information cost-effectively and immediately. In a real-time, high-resolution lending model, lenders can get all the metrics they want so the picture of risk should become much more accurate.
The TCJ platform captures, integrates and analyzes financial data to better manage risk and extract deeper insights into the health of a business. Since its launch in May 2015, TCJ has helped America’s suppliers, manufacturers and distributors access the capital they need to achieve their growth objectives. The Credit Junction, the first data-driven, asset-based lender for small and mid-sized businesses, has secured a $150 million credit facility from MidCap Financial, a leading capital provider to the middle market specialty finance industry. The facility strengthens and expands The Credit Junction’s ability to deliver comprehensive capital solutions to businesses across the United States. Century Equity Partners, LLC (“Century”) is a Boston based private equity firm that provides capital to lower middle market companies seeking investments to support growth or fund acquisitions, partial buyout or recapitalization opportunities.
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But that value proposition bothered me because it didn’t seem credible that a bank who noticed that risk had gone down because of the high-res view would rush to reduce the rate. Seltzer said that lowering rates really isn’t part of the picture. What borrowers frequently want is faster access to capital, and will often pay a higher rate to get it. The real-time, high-resolution risk model means that The Credit Junction can offer additional advances against their lines the same day they request it. If a borrower provides data to a lender, they must get something in return, such as a lower rate, faster access to money, or more information about their own business. But as part of this shift, The Credit Junction now may start offering its real-time, high-resolution underwriting platform as a service, so it will become a SaaS company as well. This follows the same path that Douglas Merrill, former CIO of Google, took with his ZestCash business, which started out as a short term, unsecured lender to consumers but eventually added ZestFinance to sell its technology directly.
The Credit Junction Secures $23 Million Equity Investment From Century Equity Partners
Century focuses on companies operating across the insurance, asset & wealth management, specialty finance, and banking and lender services sectors. The Credit Junction is an asset-based lending platform that provides working capital and growth financing solutions for small and mid-sized businesses. Seltzer said lenders always compete on rates based on the information they have to work with. With a better risk model, good borrowers are recognized and rewarded and more volatile smaller businesses may have more access to credit. The Credit Junction combines traditional credit metrics with data intelligence and partners with business owners to deliver asset-based financing alternatives unique to the needs of each borrower. Since its launch in May 2015, The Credit Junction has helped businesses across the country achieve their growth objectives while supporting job creation and development in the communities they serve.
