- 19 Jul 2023
- Updated on 19 Jul 2023
Synctera Line of Credit
Give your retail or business customers the ability to borrow on demand
A line of credit allows a borrower to utilize funds, as needed, up to a predetermined limit. The borrower may then repay the funds and borrow again as needed. Your retail customers may want to borrow money on demand to help smooth out variable income, pay for projects with hard-to-predict costs, or cover emergency expenses. Your business customers may want to borrow on demand to meet working capital needs, opportunistically expand their business, or cover unexpected expenses. A line of credit can meet the needs of both of these customer segments, and give them flexibility to transact via cash, a linked debit card, or ACH transfer.
Provide a seamless customer experience for setting up checking accounts and lines of credit
Create stickier customer relationships and boost customer lifetime value by adding a lending product to your existing suite of offerings
Create a new revenue stream by charging a subscription fee or interest on the utilized funds
How it works
Synctera Line of Credit is a technology product that allows you to offer unsecured lines of credit to your customers. You are responsible for customer acquisition, experience, and engagement. Your bank partner is the lender of record.
You maintain a reserve account with your bank partner. The reserve account will be used to repurchase the utilized portion of the lines of credit from your bank partner.
Your customers apply for a line of credit - either on its own or combined with a linked checking account - through your app or website, in one seamless process.
Once Synctera successfully completes KYC/KYB, you evaluate the creditworthiness of the customer and establish a credit limit and repayment schedule.
Your customers can use their linked checking account to access their line of credit - funds are transferred to the checking account as needed. For lines of credit that are not linked to a checking account, your customers can do direct ACH transfers to their existing checking account.
Synctera will service the line of credit. On a monthly basis, Synctera will provide you with account statement details to send to your client; Synctera will process repayments from your clients.
Synctera Smart Card - Consumer
A convenient payment solution that allows your retail customers to manage spending while potentially earning better rewards than a debit card can provide
Synctera Smart Card (consumer) enables you to issue virtual and physical secured charge cards to your retail customers, and to process their transactions.
- Enhance your overall value proposition
- Create stickier customer relationships and boost customer lifetime value
- Create a new revenue stream by earning interchange
- Interchange fees on charge cards can be substantially higher than interchange fees on debit cards
- Higher interchange rates give you more flexibility to offer attractive rewards to your customers
For your customers
- Greater convenience than debit cards (wider acceptance, lower hold amounts)
- Wider acceptance than prepaid cards
- Easy budgeting and spend management
- Credit building/rebuilding (with more access to funds than with a secured credit card)
- Potentially more attractive rewards than debit cards
- Potential to earn interest on the linked deposit account
- Issue physical and/or virtual Mastercard-branded cards (other card networks are available; contact Synctera to learn more)
- Feature custom card art
- Allow customers to add their card to digital wallets such as Apple Pay and Google Wallet
- 0% APR
- No credit decisioning or collections management required
- Your partner bank serves as the card issuer, holds linked account deposits, and facilitates all money movement
- This product is used in conjunction with ancillary Synctera services, including KYC, Ledger, External Account Verification, ACH, and Fraud
How it works
- The card’s available credit is equal to the available funds that the customer maintains in a linked deposit account
- As opposed to legacy secured credit cards, the account holder can withdraw money from the linked deposit account
- As the customer makes credit purchases on the card, an equal amount of funds in the linked deposit account are put on hold, and the card’s available credit decreases in tandem
- The cardholder must pay the card’s balance in full on the payment due date
- If the balance is not paid on time, funds on hold in the linked deposit account are used to settle the monthly statement