Customer spotlight: How Parafin used Finley to quickly scale up its capital markets infrastructure
How has fintech startup Parafin scaled its Finance team through unprecedented growth?
In just two years, Khan Shoieb, Head of Business Operations and Platform Growth, has seen the embedded lending platform kick off national partnerships with DoorDash and Mindbody, raise a $34 million Series A, and grow to 42 employees.
A big part of Parafin's growth has been built on its debt capital strategy and its use of an asset-backed credit facility. Here’s Khan on why Parafin chose to scale capital markets and debt capital management with Finley:
“All lending businesses are really two businesses. So you have the business that is supplying capital to the customer, whether it’s the small business or the consumer. And that requires its own product strategy, etc. But what doesn’t get nearly enough attention is the business of acquiring capital, debt capital specifically, to then lend out.”
“We had an entirely technical team of engineers and data scientists [and needed] to start a lending business without the traditional capital markets personnel and infrastructure that a large lender has, or even mature fintechs have. That’s not something that we could have scaled up in 30 days, which is what we needed be able to do.”
“[Finley] helped us set up the right workflows, to be able to accurately identify what our assets were, and be able to actually sell them to our lenders and have a very efficient workflow saving us, at that early stage in our company’s life, such critical time, because the opportunity cost [was] so high.”
In the clip above, Khan explains:
2️⃣ How all lending businesses are actually two businesses
⚒️ Why starting a fintech lender without capital markets personnel and infrastructure presents significant operational challenges
💡 How Finley Technologies, Inc.'s software helped Parafin scale up sophisticated capital markets capabilities in 30 days
📊 Why credit facility reporting is difficult even for teams with highly technical backgrounds, if they lack finance expertise
⌛ How Finley's debt capital workflows saved Parafin's team critical time when the opportunity cost was at its highest
Want to learn more?
Finley is debt capital management software that helps high-growth startups save time and money by automating routine credit facility management tasks. Today, Finley manages over $2 billion in debt capital for high-growth fintechs like Ramp, Parafin, and Arc. If you're interested in learning more about software that can help you streamline your debt capital raise and management, just schedule a demo or take a self-guided product tour of Finley. We'd love to chat!