Credibly Announces the Acquisition of ProApprove and the Closing of a $350 Million Forward Flow Agreement for the Purchase of Home Improvement Installment Contract Receivables

SOUTHFIELD, Mich.--()--Credibly, a leading fintech lending platform for small and medium-sized businesses, today announces its 2021 acquisition of ProApprove, a specialty finance company offering home improvement financing solutions to homeowners with prime, near-prime, and non-prime credit. ProApprove, now powered by Credibly’s industry-leading data science, technology, and risk management expertise, originates installment contracts through its growing network of home improvement contractors, helping those contractors drive significant revenue growth by enabling them to sell their products and services to homeowners across the credit spectrum.

Concurrently, Credibly reached an agreement with Castlelake, a global alternative investment firm with 17 years of experience investing in asset-rich opportunities, 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,” said Ryan Rosett, co-founder and co-CEO of Credibly. “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. 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,” Rosett added.

About Credibly

Credibly is a data science-driven fintech lending platform that improves the speed, cost, experience, and choice of capital for small and medium-sized businesses (SMBs). The company offers partnership opportunities that include balance sheet, syndication, and off-balance sheet funding options, while offering its synergy, white label, and investor partners access to its robust data science capabilities.

Founded in 2010, Credibly has provided more than $2 billion in capital to SMBs, while maintaining a strong emphasis on risk management and a culture of compliance. In 2017 Credibly became the first company in its space to acquire servicing rights to another alternative lender’s portfolio ($250 million). Credibly was chosen for its proven collections success and its approach in measuring and managing risk. Since then, Credibly has sustained its growth, maintaining operations throughout the entirety of the COVID-19 pandemic, and continuing on to post record origination numbers.

Credibly’s headquarters are in Southfield, Michigan, with offices in New York and Arizona. For more information, please visit www.credibly.com.

About Castlelake

Castlelake, L.P. is a global alternative investment manager focused on value-oriented, income-producing and asset-backed direct lending investments in real assets, specialty finance and aviation. Founded in 2005, Castlelake manages approximately $21 billion of assets. The Castlelake team comprises more than 250 experienced professionals, including 95 investment professionals, across six offices in North America, Europe and Asia. For more information, please visit https://www.castlelake.com/.

Contacts

Connor Osborn
Cosborn@credibly.com
(248) 633-1262
www.credibly.com

Release Summary

Credibly announces the 2021 acquisition of ProApprove, a specialty finance company offering home improvement financing solutions.

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Contacts

Connor Osborn
Cosborn@credibly.com
(248) 633-1262
www.credibly.com