At a Glance: Raising a debt facility is challenging for fintech founders, especially when they don’t understand the actual cost of capital associated with it. Upfront costs associated with a debt deal can be expensive and surprising for first-time borrowers. These include an initial committed …
At a Glance: An NMLS number is a unique identifier for mortgage professionals registered with the Nationwide Mortgage Licensing System & Registry. It helps to verify the legitimacy of mortgage entities and ensure compliance with regulations. Consumers can use it to check a company or loan origi…
At a Glance: Product development is crucial for lending and credit startup founders. To expedite the process, implement strategies such as building an agile team, establishing core values, adopting iterative learning, planning for scalability, and fostering strong debt investor relationships. Assemb…
At a Glance: Debt financing and equity financing are two ways for startups to raise capital. Debt financing involves borrowing money from a lender and repaying it with interest, while equity financing involves selling ownership shares to investors in exchange for capital. The advantages of debt fina…
At a Glance: NMLS Consumer Access is vital for credit startups, providing protection, transparency, and empowerment to customers. Consumers can verify the status of licensed professionals, access information, and review complaint history. Maintaining accurate information and complying with NMLS regu…
At a Glance: Startups face obstacles when introducing initial products to the market, causing most to fail. For successful companies, growth and scaling require moving past the first product. Fintech companies need to focus on expanding beyond their initial product. They can begin with either a spec…
At a Glance: Debt financing is vital for startups to grow and scale their business, especially for fintech startups to generate revenue through offering financial products. In the early stages, startups have limited and expensive access to debt financing options. Bank loans are the cheapest but have…
At a Glance: To get started with NMLS, follow these steps: 1) Create an NMLS account on the NMLS Resource Center website. 2) Complete required pre-licensure education, covering mortgage regulations, ethics, and product knowledge. 3) Pass the licensing exam, such as the National SAFE Mortgage Loan Or…
At a Glance: Fintech companies are disrupting traditional banking by offering unique products and services that attract customers. Startups in this industry should have a clear focus to succeed, which can lead to better product development, targeted marketing campaigns, easier capital raising, compe…
At a Glance: Debt term sheets outline the terms and conditions of a proposed loan agreement between a startup and a lender. While not legally binding, they set the stage for negotiations and help both parties understand each other’s expectations. Key terms in a debt term sheet include the loan…