Brazilian fintech startup Dock is launching a platform that allows firms to extend credit directly to their customers, without relying on traditional banks or credit card providers. The company provides payment services and digital banking solutions to businesses throughout Latin America. With the new platform, Dock clients will be able to offer customised payment plans to their customers, giving them greater control over repayment terms.
According to Antonio Soares, founder and CEO of Dock, many companies are better placed than banks to assess their customers' creditworthiness. "The companies know their clients best and we've created simple financial services that allows them to provide the service," he said. "The decision-making process for consumers who want to make purchases using credit has to change, it has to be more transparent."
The new lending platform is particularly timely in Brazil, where interest rates remain high, at nearly 14%. The ability to access more credit is therefore urgent for consumers with steady income streams. Dock's clients will be able to offer payment plans to customers and track their contracts and payments in real time. In addition, they will be able to extend loans based on certain criteria, such as guarantees from suppliers or employees.
One of Dock's flagship clients, Frete.com, which connects transport companies with truck drivers, is eager to take advantage of the new platform. The company plans to use it to extend credit to its drivers, providing a crucial source of funding in a difficult market.
"We have been waiting for a fintech like Dock to come along and help us reach our drivers in new and innovative ways," said Frete.com's CEO, Carlos Eduardo Ferreira. "With the new platform, we can offer much-needed financial support to our drivers without having to rely on banks or credit cards."
Dock's platform is expected to be a game-changer for Brazilian consumers, allowing them to access more affordable credit and giving them more control over their financial decisions. With around 39 million self-employed workers in the country, many of whom struggle to obtain credit from traditional sources, the new platform is expected to have a major impact on the economy as a whole.
Dock currently counts around 300 clients in Brazil and has recently expanded to Mexico, Colombia, and Chile, with its first clients in Panama also on board. The company employs around 1,400 people and makes its revenue from charging companies for access to its platform and through the use of licenses that allow them to provide financial services without being a bank.
After raising $134m in funding last year, Dock is close to achieving break-even status and has a valuation of $1.5bn as of May 2022. According to Soares, the company does not see the need for further venture capital funding at this stage, but may consider acquisitions that require financing in the future. Dock's long-term backers include Riverwood Capital, Viking Global Investors and Sunley House Capital.