A loan management platform has announced a crowdfunding campaign on Equitise, with the goal of raising $1m to fund marketing and international expansion.
Credi was launched to formalise the repayment schedule and interest rate on loans between family and friends, which is estimated to be "the largest lending institution in Australia after the big four banks", lending more than $65bn in 2017, according to figures circulated by the fintech.
The platform targets common issues and friction often experienced with the informal lending of money, and has positioned itself as an alternative source of finance to the high interest rates of traditional lenders.
There are currently 5,200 people from 26 countries utilising the platform. Over the past two years, Credi has seen more than $100m in transactions, with the average loan sitting at $80,000.
“We have Credi users eagerly awaiting to invest in Credi. This endorsement confirms that our platform is a much needed disruptor in the fintech space,” said Tim Dean, founder.
“Credi makes it easy to receive financial support from friends and family as an alternative to traditional and more expensive forms of credit such as bank loans that often carry potentially crippling fees.
“Australians are already lending millions of dollars to friends and family on Credi, at an average interest rate of 3% compared to the double digit rates charged by many of the majors.”
Credi will issue ordinary shares valued at 10.5c each, with a minimum investment of $210. The offer will be open for just under a month, and the minimum target is $200,000.
Equitise co-founder Chris Gilbert said, “As Credi is a platform formalising loans for everyday Australians, it makes complete sense the company would turn to everyday investors or ‘the crowd’ to raise capital.
“Credi has identified a massive gap in the market that the banks and other financial institutions have failed to act swiftly on.”