Lending

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.

Benefits

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.