Background
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.”
Solution
“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," said Shoieb. "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.”
Impact
By partnering with Finley, Parafin was able to:
- Scale up a Capital Markets function in the span of 30 days
- Maintain 100% credit agreement compliance with its lender
- Maintain its growth trajectory on the way to its Series B funding round
.jpg)
