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Bridging the SME Funding Gap
Allison Karavos
Ten Companies Embracing Lending Innovation
SMEs remain the powerhouses of most economies, both global and regional. But it’s often still difficult for them to get the funding they need to thrive. How can we bridge the $5.2 trillion global funding gap for these deserving yet underserved businesses? And how can lenders expand into this high-demand market segment?
By embracing digital transformation and implementing intelligent risk decisioning, loan providers can ensure greater accuracy and agility when making lending decisions for SMEs. While there is still much untapped potential in the industry, more and more lenders are willing to embrace innovation, better serving the needs of SMEs without increasing their risk. Check out our list for some of the SME lenders leading the way.
- Fundbox:
- OnDeck:
- Konfio:
- Clearco:
Canadian lender Clearco seamlessly integrates and analyzes revenue data and evaluates the health of the business directly from an SME’s store and/or bank account. Instead of looking at past performance like many other lenders, Clearco uses fundamental business data to predict future success and generates funding capacity accordingly.
- KLYM:
With a mission to build a scalable credit system for SMEs in LATAM and South America, KLYM uses data to deliver real-time financial services. Able to make funding decisions in minutes, KLYM automates much of their process through electronic invoice analysis and machine learning so they can offer agile solutions for growing businesses.
- Novicap:
- Prospa:
Promising fast access to flexible funding solutions, Prospa features the ability to apply online in under 10 minutes, receive a same-day decision, and access to approved funds in less than 24 hours. As the number one online vendor to small businesses in Australia, Prospa offers business loans and accounts, evaluating the health of your business with a proprietary complex credit assessment tool that considers over 450 separate pieces of information.
- Validus:
- IFS Capital:
- OakNorth:
Faster, More Agile Loan Approvals
SME lenders across the globe are trailblazing new, future-proof ways to serve SMEs and transform formerly clunky, complex application processes into streamlined, optimized ones. Utilizing innovative tech can enable you to automate credit decisioning to provide accurate, real-time approvals, allowing SMEs to gain access to funds quicker than ever before. By automating data collection, risk decisioning and pricing, lenders can enable faster approvals and ensure funding is in hand within a matter of only minutes.