Credibly, a fintech lending platform for small and medium-sized businesses based in Southfield, has acquired ProApprove, a specialty finance company offering home improvement financing solutions to homeowners with prime, near-prime, and non-prime credit.
ProApprove originates installment contracts through its network of home improvement contractors, helping those contractors drive revenue growth by enabling them to sell their products and services to homeowners across the credit spectrum.
As part of the acquisition, ProApprove now utilizes Credibly’s data science, technology, and risk management expertise
“Contractors who offer financing solutions through ProApprove will no longer need to turn down sales due to a homeowner’s inability to pay for a project upfront, helping those contractors grow their book of business,” says Ryan Rosett, co-founder and co-CEO of Credibly.
Credibly also reached an agreement with Castlelake, a global alternative investment firm for the purchase of up to $350 million in home improvement installment contract receivables originated by ProApprove. ProApprove will service the receivables it sells to Castlelake.
“Through conversations with contractors who obtain financing from Credibly, we identified a significant market opportunity in the home improvement space,” Rosett says. “We believe our agreement with Castlelake will accelerate our expansion efforts by providing contractors with confidence that they can offer flexible financing solutions to all of their customers.”
Founded in 2010, Credibly states it has provided more than $2 billion in capital to small and medium-sized businesses, while maintaining a strong emphasis on risk management and a culture of compliance. In addition to its headquarters in Southfield, it has offices in New York and Arizona.
For more information, visit credibly.com.