At a Glance: The Debt-to-Income (DTI) ratio compares a fintech startup’s total debt to its income. It is a percentage indicating how much of the income goes toward debt repayment. A lower DTI ratio is preferred, showing a healthier financial position and lower risk. Factors influencing the opt…
At a Glance: To create a debt strategy for your credit startup, assess your startup’s financial needs by determining funding, repayment timeline, risks, and debt’s impact on cash flow. Develop a debt financing strategy by setting goals, researching lenders, understanding terms, creating …
At a Glance: Credit startup founders must prioritize risk management to ensure they lend to qualified and dependable borrowers. Four key areas that require attention are evaluating borrower creditworthiness, mitigating fraud risk, monitoring portfolio performance, and establishing operational contro…
At a Glance: Building a successful credit and lending startup requires defining key positions: CEO/Founder, CTO, CFO, Operations Manager, Credit Analysts, Customer Service, and Sales and Marketing. Hiring the right people is crucial, considering qualities like industry expertise, adaptability, analy…
At a Glance: When launching an embedded finance product, startups should answer several critical questions, such as whether to build it in-house, what data to collect and how to utilize it, and what leverage they have. Building in-house provides maximum flexibility but is also the most expensive and…
At a Glance: Defining a target audience is a critical step in fintech market research, and demographics, psychographics, behaviors, and pain points are core areas to explore. Identifying market gaps requires analyzing customer behavior, finding unmet needs or lack of effective solutions, and develop…
At a Glance: The Debt Capital Market (DCM) is a financial market where companies, governments, and other entities can raise capital by issuing debt securities, such as bonds and notes, to investors. The DCM is an important source of funding for companies and governments as it allows them to access a…
At a Glance: Fintech startups must prioritize risk management, in addition to innovation and disruption. There are six key areas of risk management that founders should focus on: general risk management, business continuity planning, business resilience, institutional knowledge, consistent testing, …
At a Glance: The surge in fintech has led to intense competition in the lending and credit market. To stand out, founders must be strategic and analytical in their loan approval and offer process. This write-up highlights eight key metrics, including Pull Through Rate, Decision to Close Time Cycle, …
At a Glance: Starting a lending business is complex, requiring a focus on five key functions: product, acquisition, underwriting, debt capital, and compliance. Founders must prioritize these functions correctly to scale successfully, ensuring they don’t harm customer trust. Initially, the prod…