Credit Line update

Important Notice About Changes To Your Credit Line From Vaya

Please see the FAQs below for an important update about our credit offerings.

Since we started providing credit services, our goal has been to understand how best to serve small businesses like yours. To do that, we ran pilot programs with our customers to test different approaches and learn what works.

Based on what we learned from those pilots, we are making some changes to how we operate credit lines.

As part of this transition, we are shifting our business model to partner with external lending institutions rather than providing credit directly. While this shift will take time, we need to close out existing credit lines in the meantime. To make this transition easier, we are converting your outstanding balance into a structured 9-month term loan, giving you more time to repay rather than requiring immediate repayment.

At the same time, we are working as quickly as possible to establish partnerships with external lenders so we can reinstate or renew credit lines in the future. Our goal remains the same—to provide small businesses with the financial tools they need to grow—and we appreciate your patience and support as we move forward.

If we didn’t cover something in the FAQs or if you have a more specific question about your account, please reach out to us at help@vaya.finance.

Frequently Asked Questions (FAQ)

1. Why are you making this change?

We are transitioning our business model from providing direct lending to partnering with external lending institutions. This shift will enable us to scale our offerings in a sustainable way and bring you better credit solutions in the future.

2. What will happen to my current credit line and my outstanding balance?

Starting on Feb 1, 2025, withdrawals from your current credit line will no longer be available.

Any outstanding balances will automatically convert to a 9-month term loan with a fixed repayment schedule with the same interest rate. This is designed to provide you with a predictable and manageable way to repay your balance.

3. Why can’t I continue to use my credit line?

As part of our transition to working with external lending partners, we need to close the existing credit lines. This step is critical for ensuring that we can continue to serve you and other small businesses in the long term.

4. When will new credit products be available?

We are actively working to establish partnerships with external lenders and hope to resume offering credit solutions as soon as possible. While we don’t have a specific timeline, we will keep you informed about new developments.

5. How will the 9-month repayment schedule work?

If you have an outstanding balance when your credit line closes, it will automatically convert into a 9-month term loan with the same interest rate.

Here’s how it will work:
• The loan will have a fixed repayment schedule with equal monthly installments over 9 months.
• Your current billing cycle will stay the same, and you can log onto your existing loan dashboard to see the payment schedule. See example below.
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• You will also receive regular monthly payment reminders as you normally do now to remind you of the scheduled payments. These payments will also continue to be automatically deducted as usual.
• There will be no additional fees or penalties for the conversion. Your current interest rate will also stay in effect for the repayment period.

6. Can I opt out of the 9 month repayment and close my credit line out now?

Yes, you can log on to your loan dashboard to close the loan by repaying the full amount at any time without penalties.

7. What happens if I struggle to make payments?

We strongly encourage you to prioritize your loan payments to stay on track and maintain financial stability. On-time payments help you:
• Avoid late fees that could increase the cost of your loan.
• Protect your credit score, which is essential for accessing future financing.
• Avoid adverse legal or collections actions, which we want you to avoid. But, unfortunately we are required to refer late or missed payments to a collections agency.
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Reminder, as with any loan, it’s important to make timely repayments to avoid impacting your credit score or facing legal action.

8. Will I still be able to apply for credit in the future?

Yes! While we are pausing direct lending for now, we plan to resume offering credit through external partnerships in the future. Our goal is to provide you with enhanced, sustainable credit solutions tailored to your needs.

9. How does this change benefit me?

By transitioning to external lending partners, we will be able to scale our offerings and focus on developing innovative tools to support your business goals. This ensures we can better serve you in the long term, with solutions that are reliable and sustainable.

10. How can I stay updated on new products and offerings?

We will share updates about our progress and new offerings through email and [preferred communication channel]. Be sure to keep an eye out for announcements!

11. Who can I contact if I have more questions?

If you have additional questions or concerns, please don’t hesitate to reach out to our team at help@vaya.finance. We’re here to help!