LoanCirrus Limited (LCL), a Kingston-based operation which produces lending software, is in take-off mode thanks to a cash-for-equity swap at year end 2016.

Although declining to share the level of the investment made by First Angels Jamaica(FAJ), CEO Michael Claire said the injection has enabled the software company to make inroads in 15 countries worldwide.

It is likely, Claire told the Jamaica Observer, that LCL, now one year old, will reach break even before year end 2017.

Shareholders in LCL swapped equity in the company for investment funds, becoming the 5th investment of FAJ.

Investment source First Angels is a network of Jamaican businesses and investors who came together in 2014 to back start-up ventures. At last count, the network had 22 members, of which 17 are individual investors and five were associates.

Joseph M Matalon, Sandra Glasgow and American John “JJ” Geewax were founding members. The network appears to have a penchant for technology companies or start-ups with products and services based on new technology.

LCL has an online cloud-based Loan Management System — LoanCirrus — that lenders of all sizes can use to manage their entire lending operations.

In the medium term, the CEO and his team of engineers, who are also shareholders, are hoping to double sales annually.

For Loan Cirrus, Claire outlined that it took almost a year for the development of the software.

“It took almost all of 2016. The company entered the market in earnest since January 2017,” he said, outlining that LCL has eight customers in Jamaica, and also clients from countries including Botswana, Kenya, Uganda, Nigeria, Belize, Trinidad and the USA, among other nations.

LoanCirrus Ltd was founded by Michael Claire and his partners Desmond Campbell, Karey Powell, and George Henry. Each is a shareholder and manager in the business.

According to Claire, who is both CEO and head of product for LCL, “Having owners in the business demonstrates a level of stability and long-term support behind the product and the business. Clients love that.”

They are operating what they describe as Jamaica’s first global software as a service (SaaS) business in a US$37-plus-billion global industry.

Claire outlines that an established lending company or someone just getting into the lending business “can quickly and easily get world-class software to manage their business operations without forking out a single penny upfront. You can be up and running within five minutes or less.”

The company offers a free 14-day trial of the software.

Claire comments, “You start using the real software right away…

“The best part of our business is our pricing. You pay monthly only for the active loans in your portfolio. As your portfolio grows you pay a little more, but you are always paying less as a per cent of your revenues generated from the loans.”

The CEO said companies will save on infrastructure and other input costs. “It’s a really great deal for lenders. They don’t need to fork out any cash. They just treat LoanCirrus like another employee — except Loan Cirrus works 24/7 with no breaks.”

LoanCirrus currently has a team of 12 workers all based in Jamaica. Claire cites the pending Microcredit Act as another reason for lenders to “pay close attention to systems that are secure, scalable, supports ‘know your customer’ requirements, and provides the level of process control and oversight required”.