Case study: Secured Line

The primary feature is a secured card, allowing business owners to access a line of funds that they pre-fund, providing a safer way for both the business and the provider to manage financial risk.

One of the essential benefits is that it underwrites businesses for larger amounts of funding than they would typically qualify for due to their limited or non-existent credit history.

This product is designed to help businesses establish and improve their credit over time. As these businesses demonstrate financial responsibility with their pre-pay card, they can build the credit necessary to potentially qualify for a traditional line of credit.

In addition to building credit, users of the Secured Line can earn rewards, adding value to the product beyond its core financial functionality.

A future goal for users is the ability to migrate from the secured line to a regular credit line as their business credit improves, offering greater financial flexibility and growth opportunities.

Research suggests that small businesses value the flexibility offered by the Secured Line, including the ability to pre-fund based on their current financial situation. However, they desire clear guidance on how to leverage the product to improve their financial standing.

• Finding #1: Small businesses have expressed that gaining access to credit is one of their primary challenges. They appreciate the Secured Line because it offers a bridge between no credit history and qualifying for larger credit lines.
• Insight: The product fulfills a significant gap in the market by helping businesses that would otherwise struggle to secure funding, demonstrating a clear need for this offering.

• Finding #2: Customers have shared interest in additional flexibility with their secured line, such as higher spending limits, faster transitions to unsecured credit, or more compelling rewards.
• Insight: Providing features that allow businesses to scale their use of the product, while enhancing reward programs, could increase customer satisfaction and drive usage.

• Finding #3: Early research indicates that businesses using the Secured Line tend to show better financial habits over time, such as paying their secured balance responsibly and gradually building business credit. This opens up opportunities for future product migration, including the shift from secured to traditional credit lines.
• Insight: The product has the potential not only to improve individual businesses' financial health but also to foster long-term retention as these businesses grow and continue using Bill.com products.

• Feedback: Some users may have found the product terms, particularly around how secured lines work and the transition to unsecured credit, confusing or difficult to understand.
• Insight: Improve customer education and onboarding processes to make the product more accessible, particularly for users unfamiliar with financial products.

Over 10,000 existing customers and small to medium-sized businesses (SMBs) are not getting approved in underwriting due to limited credit history or a short time operating as a business. By transitioning these businesses to the Secured Line, we expect a $3B increase as a financial lifeline that satisfies our current product gap. 

• Finding: Customers who are approved for the Secured Line tend to engage more with BILL’s platform overall. They are more likely to utilize additional services and tools to manage their finances, seeing BILL as a valuable partner in their business growth.