Credix
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Stakeholders
In this section, we will outline the three types of stakeholders that interact with the Credix platform: the borrower (e.g. FinTechs), the underwriter (e.g. accredited investor) and liquidity providers (retail + accredited investors). The diagram below explains how they are related.
Borrowers
Today, Fintechs and non-bank lending businesses in underserved markets are often limited to sourcing capital locally. But why do they actually need debt financing? Here's a clearer picture: local banks see them as competitors and thus do not want to lend them any capital. Because they do not provide them access, they are dependent on family offices and institutional investors. This can require high interest rates and long and non-efficient capital sourcing cycles. At Credix we work closely with our investors and borrowers to automate the sourcing and create more efficient access to capital. This way our borrowers can focus on what they do best, providing loans to those in need.
Credix works with non-bank financial institutions and lenders in emerging countries to distribute the capital to their end-clients. The borrowers draw down stable coins from our automated smart contract driven credit facilities and convert this into their local currency (fiat). Credix selects those lending businesses / partners based on historical loan performance, defaults, and risk management processes. To achieve the most accurate due-diligence and risk scoring, we will be assisted by specialised firms.
Underwriters
Our underwriters are represented by a group of institutional investors and high-net-worth individuals. These accredited investors supply the junior tranche of our credit deals. Meaning they take a higher risk (first-loss capital) but have potentially higher yields because of the senior tranche leverage. They analyze our deals as individual investment opportunities. Their confidence in supplying capital gives trust for our investors in the junior tranche.
Liquidity Providers
Individuals, financial organizations, and corporates can supply capital to our liquidity pool to earn a low-risk but stable and attractive yield. Their capital is allocated to the deals underwritten by the Underwriters, representing the senior tranche. They are thus protected by the first-loss capital as provided by the underwriters.
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