After emerging from “stealth” with a $31 million Series B in August, integrated lending architecture fintech Jaris announced a partnership with HoneyBook.

According to CEO Chris Aristides, jari built an integrated funding platform for the gig management company called HoneyBook Capital. It allows HoneyBook users to access financing where they usually access customer payments, contracts, and billing.

Jaris Founder and CEO, Chris Aristides

“You have to find a way to provide reasonable financing, and so the underwriting process is fair, that’s super important. What I think of when we partner with HoneyBook: “Who should know their customers better than HoneyBook?” And the answer is, nobody,” Aristides said.

“We should use their data. We should help them subscribe. We should help these guys get competitive and reasonable funding.

Without going into specifics, Aristides said the announcement comes after months of working with HoneyBook and numerous successful loans to independent contractors.

“The thing is, the product is moving. There is actually a legitimate volume running through it,” Aristides said. “And we spent a lot of time together adapting it. So it’s, it’s in good condition. I’m happy.

Everything in a box

Aristides said jaris takes pride in creating white label subscription solutions for any application. jaris brings a complete integrated financing product in one box, offering underwriting, servicing and financing, Aristides said.

“So [with HoneyBook] we’ve done all of the upfront subscriptions, we’ve created offers, customers have taken the offers, but now we have to maintain all of these balances, we have to maintain compliance with our banking partnership. Then becomes like after the loan, And then you go to maintenance and maintenance requires a license.

With jaris, HoneyBook Capital can provide its clients with quick access to capital, a streamlined and simple application process, and a single, simple fixed-fee repayment structure. Clients can receive funds as early as the next business day.

“Right now we’re actually doing the whole credit facility – we’re completely managing the risk component,” Aristides said. “At some point we will also allow the partner to fund the client as well.”

Get out of “stealth”

The partnership comes after a successful funding round. Still, Aristides didn’t jump at the chance to comment on the fundraiser. For the Burlingame, Calif.-based company, based just outside of San Francisco, competing in Silicon Valley is tough enough without streaming what it’s working on.

“I don’t really like talking about us until we do more stuff. I don’t want people announcing $3 million rounds,” Aristides said. “Because, you know, at in many ways, the Valley is a pretty competitive space. And when people realize what you’re doing, they’ll be like, ‘Oh, I can do the same thing.’

Since its founding in 2017, Jaris has had its head down, building a platform without writing “the playbook for someone else,” Aristides said.

Growing gig economy, growing demand

Part of the good news was recognizing the great work being done at HoneyBook. Entrepreneurship has exploded over the past two years, with more than 4 million new business applications filed through September 2021, and HoneyBook has continued to grow.

“We are thrilled to partner with Jaris and provide our members with the access to capital they need to run and grow their businesses,” HoneyBook CEO Oz Alon said in a statement.

“Early on, we saw the demand for financial products and services, and specifically the ability to access capital faster and easier. HoneyBook Capital fills this need and furthers our mission to help independent businesses succeed.

According to Statista, it is estimated that the independent economy will encompass more than 50% of the total U.S. workforce by 2027.

Two decades in the valley

Aristides has 18 years of financial services under his belt, and after years he said he needed to take a step back. He had seen Silicon Valley grow with a front row seat, but had waited for fintech to progress before joining.

“I came here in 2000, first as an analyst and later as a portfolio manager, so I’ve worked in a bunch of places you probably know,” Aristides said. “Alliance Capital was my first boutique, then Citadel and SAIC and magnetar, and a bunch of big funds and partner funds for a long time. And I’ve seen this part of the country grow to a point, I wasn’t there the first day, but I was kind of here the second day, right? »

Technology and more specifically fintech have grown to the point that by 2017 there was enough to use, enough from a technology standpoint where Aristides said he could start building financial apps.

The goal is to provide a middle ground between the hard-to-get bank loans for small businesses and the expensive merchant cash advances that most small businesses typically have to contend with, Aristides said.

“There are no rules in the MCA world,” Aristides said. “By definition, an MCA has no maximum term, has no minimum payment, and has virtually no service rules. Have you ever looked at the rates charged by an MCA provider?” says Aristide.

“If you’re a good ol’ solid credit geek like me, the average weighted factor rate for these rates seems to be around a three at 130-133, which is a solid 150-250%. ‘about six months is like 250%.”

The way he offers middle ground is through a banking partnership, but the in-house underwriting department, Aristides said.

And after?

Along with creating new integrated funding products for a growing network of partners, the plan is to create a team of data experts to manage the growing Jaris ecosystem, Aristides said.

The partnership with HoneyBook is the latest in a series of announcements for the jars, including its collaboration with SpotOn to launch SpotOn Capital.