Creating a peer-to-peer lending platform that went global. The story of Endurance Lending Network.
The Problem
Capital investment for opening a small business is difficult to acquire, and the initial cost to launch a new franchise location, for example, can often reach $200–500K. The traditional small-business loan application system is broken, and the marketplace needs a new alternative.
The Hypothesis
More business owners would apply for loans to start new businesses if the application process were easier and the terms fair. More stakeholders would consider investing if they had the option to do so in risk-rated pools of business loans. A technology platform could create a scalable business strategy by automating the outdated loan process.
Prove it
Collaborating with ELN founders and product leads, Crema created an on-boarding process to engage potential applicants. While the ELN team worked to spread the word, Crema refined a tailored loan application process which included pre-qualification and a loan estimate calculator.
Iterative builds
After our team completed the initial build, and upon successful validation of product-market fit, ELN raised a round of venture capital. Crema continued to work iteratively on the product as ELN perfected their underwriting process. Our team helped to automate manual processes to prepare their business to scale. Through our cooperative development efforts, ELN users were able to follow the progress of their application, invite co-signers, and much more. This reduced the time-to-completion rate for processes that previously took hours or days.
The hand-off to success
As the business grew, ELN began to hire full-time engineers. Crema collaborated with ELN’s engineers, allocating application priorities between our two teams. Working closely with ELN developers made the transition process seamless, as they focused on growing and scaling the platform.
Shortly after the final product hand-off, ELN merged with Funding Circle, a UK based peer-to-peer lending platform for small businesses. Funding Circle was named one of the most innovative UK startups to watch in 2016 and has continued to grow!
