Today, Credibly announced its second offering of asset-backed securities (ABS) with the issuance of three classes of notes totaling $65.77 million. The asset-backed securitization is expandable to $200 million to further support the company’s continued growth
This transaction marks the first ABS within the SMB lending space since the onset of the COVID-19 pandemic and will reduce Credibly’s cost of funds compared to its existing ABS.
“This transaction is a testament to Credibly’s proven ability to responsibly provide credit to SMBs,” said Ryan Rosett, Founder and Co-CEO. “This ABS further solidifies the company’s position as a leader in the industry and would not have been possible without our dynamic response to the COVID-19 pandemic.”
Credibly deftly managed its operations during the pandemic by increasing underwriting scrutiny to ensure continued originations and by implementing creative, merchant-focused servicing and recovery strategies. The results of these initiatives not only served to maintain business continuity, but also contributed to significantly lower losses than what was modeled.
In addition to the securitization, Credibly was able to maintain all of its other financing sources throughout the pandemic, including its warehouse line, senior unsecured notes, and excess concentration warehouse. The refinancing of the Series 2018-1 ABS with this securitization is a testament to the company’s leadership position in the SMB space.
“We are proud of our response to the pandemic, our growth, our profitability, and the performance of our assets,” said Michael Seneski, Chief Financial Officer. “Only a handful of companies in the SMB lending space have completed and maintained an asset-backed securitization, and the latest transaction reaffirms Credibly’s position as the leader in risk analysis.”
Since 2010 Credibly has provided SMBs with access to over $1.3B in financing while experiencing industry-leading loss and recovery rates. Credibly and its products have continued to exceed expectations and the reduction in their cost of funds will allow the company to compete even more aggressively to provide capital to SMBs.
As Credibly continues to grow, they remain focused on improving their technology, product suite, and data science capabilities to serve an even broader range of SMBs throughout the credit spectrum, while maintaining their emphasis on risk management and a strong culture of compliance.