Biz2Credit, an online venture for credit solutions

19 Sep

Our parents swore by stable jobs, but I and my brother Rohit didn’t quite subscribe to this idea. After elementary education in India in 2000, Rohit took up a job with the Government Investment Corporation (GIC), a venture capital firm in Singapore, where he worked till 2002.

He then moved to the US to study MBA from the University of Columbia. During this period, I was studying CA and had trained in Citibank for a year. After completing it in 2001, I too moved to the US to study for my masters in accounting from the University of Michigan.

After acquiring the degree in 2004, I started my career with Affiliated Computer Services, a Fortune 500 company. I worked here as a financial solutions architect till 2006. While working in the US financial markets I had realised that the laws on lending and borrowing money were not too stringent and that the market was rife with borrowers, but they were ignorant about the process, which was lengthy and cumbersome.

There was a rising demand for funds from small and medium business enterprises (SMEs), which formed a fragmented market worth $8 billion and comprised more immigrants.

In October 2007, using my financial knowledge and my brother’s business acumen we launched, a credit solutions portal, in New York. We invested $200,000 (Rs 94 lakh) as seed capital, with help from family, friends and our personal savings to create an algorithm.

It was a standalone platform for SMEs to connect with moneylenders and service providers in order to acquire funds. The portal analyses the financial strength of these SMEs and matches them with loan products based on the financial requirements of the lenders.

While working on the algorithm, we found that our business model would help the bank reduce the cost of acquisition of an SME. We spoke to a few, small, community banks- Puerto Rican Banco Popular, American-Korean New bank and Wilshire State Bank-as it was easier to convince them due to the stiff competition among them.

In September 2007 (even before we launched), we bagged our first client, a cell phone distributor in New York. By the end of October, we had got him a loan worth $100,000 at the rate of 6%. Word spread and set the ball rolling in our favour.


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