Clay Technologies has secured a strategic seed investment from Pepper Advantage that will enable them to establish an end-to-end credit platform.
This joint venture will allow companies in the UK to initiate their unique lending programs effectively.
The move has come in response to the current market conditions that are pushing many businesses, including FinTechs, start-ups, and large corporate enterprises, to attempt to launch lending programmes to drive business growth.
Clay’s SaaS platform and API will empower businesses to launch their Brandable Credit™ programs seamlessly.
The platform simplifies the complex process of offering credit, such as personal loans and credit cards, addressing challenges related to regulatory compliance, debt capital raising, and credit servicing infrastructure.
The standout feature of Clay’s offering is its Debt-as-a-Service, providing integrated access to funding for loans, eliminating the need for external debt capital providers.
]Clay’s platform, with just a few lines of code, manages origination, underwriting, compliance, and servicing within a client’s app. This allows businesses to focus on front-end development and growth while Clay handles the back-end processes.
In the strategic joint venture with Pepper Advantage, Clay’s platform integrates deeply with Pepper Advantage’s Loan Management Platform.
This collaboration, powered by Pepper Advantage’s extensive loan servicing abilities and credit data analytics, ensures effective loan management from disbursement to repayment.
David Yalland, Founder and Chief Executive Officer at Clay, said: “We understand the hurdles companies of all sizes face in offering embedded credit products — from dealing with fragmented service providers to navigating the tough road of accessing debt capital markets, particularly as banks and debt funds often shy away from early-stage lenders. Our joint venture with Pepper Advantage, forming the foundation of our comprehensive platform, will significantly streamline the process for these companies to introduce their own branded offerings.”
Fraser Gemmell, Chief Executive Officer at Pepper Advantage, said: “Our joint venture with Clay fits Pepper Advantage’s strategy of driving innovation within the lending sector. We continue to develop proprietary credit management technologies and advanced data and analytics to increase efficiency and expand credit access to clients underserved by traditional lenders. Clay’s platform will help companies access the capital, technology, and service offering they need to provide smart credit to their customers. We are proud to be part of this transformative offering.”
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