Crediyo

Crediyo helps patients pay for their out of pocket medical expenses (e.g. their deductible) by giving them access to completely customized, low interest credit products at the point of service. Additionally, Crediyo pre-funds healthcare providers on behalf of their patients, giving medical practices immediate access to cash flow. Crediyo’s analytics platform allows medical practices to identify and evaluate all patients’ propensity to pay- even those with limited credit histories. Overall, Crediyo creates a retail-like pricing, billing, and credit experience at the point of service, where prices are transparent, patients are rewarded with discounts for positive repayment behavior, and providers collect more.

1. Origination fees - similar to other marketplace platforms, Crediyo charges an origination fee for loans created on its platform.   The fees range from 2.0-5% depending on the type of financial product and the origination channel.  The origination fee is incurred at the time the loan product is created/funded.  

2. Servicing fees -  In addition to the origination fees, Crediyo will charge a servicing fee for collections of consumer payments.   The fees will be incurred as patients make payments on their outstanding balance. Some patient segments (i.e. near prime and subprime credits) will not qualify for a loan product and our technology will facilitate payments on the provider A/R balance.   We will take a fee from 5% to 15% depending on the type of customer and the contracted agreement with the provider.

Marketplace lending

Marketplace lending has been established as a viable alternative to traditional brick and mortar banking institutions for consumer and small business lending.  The trend started by the success of Lending Club, Prosper, and On Deck Capital (among others) will continue to accelerate. There are new ‘origination channels’ and specialties that are benefiting from the supporting ecosystems of investors, technology partners (loan servicers, etc.).   Investors like foundation capital forsee marketplace lending becoming a $1 trillion dollar marketplace.  

https://foundationcapital.com/assets/whitepapers/TDMFinTech_whitepaper.pdf

Crediyo has sourced an initial pool of lending capital from High net worth individuals that are part of a Special Purpose Vehicle (SPV) that will provide great risk-adjusted returns for our initial set of investors.   Over time, Crediyo plans to utilize a marketplace lending model where multiple sources of capital can participate on our lending platform.  

The Crediyo team has existing relationships with a number of sources of capital (hedge funds, family offices, select commercial banks) for experience in prior startups as well as H&R block (over $8B of annual consumer lending products).

Research has shown that a point of service payment solution increases the likelihood that a patient will pay. By offering our service when the patient is still at the medical practice or hospital, we believe that patients will be more likely to pay. Hospitals and medical practices must operate more and more like a retail store -- they must provide their patients with point of service payment options, allow web-based payment, accept all major credit and debit cards, integrate payments with clinical data, and create consumer-centric payment plans that incentivize payment.