The London business lending platform Trade Ledger is joining forces with Wiserfunding to give lenders and alternative financing providers the ability to evaluate the creditworthiness of its commercial users, Trade Ledger announced Tuesday (March 10).
An expert in mid-market commercial lending-as-a-service, Trade Ledger wants to implement Wiserfunding’s SME Z-Score so it is convenient for lenders and administration.
“Inaccurate and slow credit risk assessment for [small- to medium-sized business (SMB)] commercial loan requests is one of the major reasons that over 50 [percent] of loans are currently declined by financial institutions (FIs),” said Roger Vincent, chief innovation officer at Trade Ledger. “This has created a … global credit gap and is stunting economic growth and social mobility. To address this issue, risk assessments must be exceptionally accurate and utilize unstructured, as well as structured, big data inputs and machine learning techniques in this continually evolving environment. Wiserfunding uniquely does just that, but offers the reassurance of the best of academia and its established client base, while drastically reducing the time taken to underwrite counterparties.”
“Trade Ledger [was] the perfect fit for our credit risk assessment solution,” said Gabriele Sabato, CEO of Wiserfunding. “As one of the fastest-growing lending technology providers in the world, their data-driven approach to commercial lending provides the ideal platform for underwriting and portfolio management teams to accelerate their risk management capabilities. With Wiserfunding’s SME Z-Score embedded within the platform, these institutions can now start to think about more advanced segmentation, automation and straight-through-processing, advancing the accuracy to record levels and profiting from this hugely underserved market.”
The global partnership will go after mid-market lenders and banks that generally use manual risk assessments to spot dicey clients.
Wiserfunding, in partnership with modefinance, announced in July the launch of Europe’s first certified credit rating for SMBs. The service gives SMBs the ability to get a credit rating that only larger, public firms have been able to use to show their creditworthiness to potential investors and lenders.