CreditPlace

About CreditPlace

CreditPlace, founded in 2013, operates as a peer-to-peer (P2P) investment and debt trading platform in Israel. The company provides a digital marketplace designed to address the cash flow challenges faced by small and medium-sized businesses (SMBs) due to deferred payments from their large corporate clients. Through its online arena, businesses can sell their pending invoices at a discount to receive immediate payment, typically within 48 hours.

The platform targets private investors and family offices, offering them access to a credit market they might not otherwise reach. These investors can purchase the invoices, which are essentially short-term receivables from reputable companies like the Israel Electric Corporation and Partner Communications, mitigating non-payment risk. This model provides investors with a short-term investment opportunity, usually between 30 and 90 days, yielding annual returns projected between 4.5% and 7.5%. CreditPlace's revenue is generated through a dual-fee structure; it charges a commission of 0.5-0.7% from the business selling the invoice and takes 10% of the interest earned by the investor.

Significant milestones for the Tel Aviv-based fintech include a NIS 6 million financing round in 2016, which was aimed at increasing market penetration in Israel. This was followed by a more substantial $8 million funding round in 2018, led by OM2 Ventures, intended to fuel international expansion and further platform development. To ensure the security of transactions, receipts purchased by investors are insured by credit insurance company Coface S.A., and all funds are managed in a trust account administered by the BDO Ziv-Haft accounting firm. While one source indicates the company may be inactive as of early 2024, its historical model represents a distinct approach to SMB financing and alternative investments.