Capitalise.com, a digital “super” platform that enables accountants and their SME customers to gain access to capital with a range of credit and risk tools, has secured £10 million from Experian, QED Investors, Gauss Ventures, Hambro Perks, and Post Finance.
The investment acquired by Capitalise.com will be directed towards supporting the launch of Capital Reports, an integrated risk management solution that takes up where conventional credit reports leave off.
Powered by Experian and embedded within an accounting solution and SME balance sheet, Capital Reports enables accountants to protect their SME customers from unexpected risks of their clients’ and suppliers’ credit positions by identifying potential defaults. The software analyzes what’s currently available to a company and its propensity or requirement to borrow. Based on this information, the software offers real-time access to a curated panel of mainstream and alternative providers.
Approximately half a million UK-based SMEs have cash reserves of 4 weeks or even less. Out of these firms, around 230,000 are considered to be at high risk. Their average account balance is only about £45.000, however, the average SME has £30,000 in total delayed payments: with little idea or knowledge about when they’ll get paid.
A better understanding of the financial risks involved due to the actions of suppliers and clients on whom they depend makes SMEs more resilient. They’re also able to enhance their own credit rating, enabling easy access to capital at more affordable pricing from mainstream and alternative finance providers.
Paul Surtees, CEO and Co-founder at Capitalise, stated:
“Everybody has had to think differently during the pandemic, including us, so we created a virtuous circle in which SMEs and their advisors are shielded from risk and helped to grow. Powered by Experian’s credit data, propensity modelling and open banking, we underline our commitment to our accounting community by bringing their data to life and supporting their SME clients, in bad times and good.”
‘Capital Reports’ will be accessible via the Capitalise platform which underpins the digitalization and access to capital of more than 1,800 UK-based accounting companies and has provided more than £1 billion of offers from its 200 different capital providers.
Delivery will be provided through a free and paid subscription model. On launch, it will be offered to around 500,000 SMEs through their accountants and another 500,000 through API and Open Banking partnerships.
Ollie Maitlaind, Co-founder and CPO, remarked:
“Managing credit risk is central to lender activity but SME owners typically overlook it. This restricts their growth and jeopardizes their survival. While the digitalisation of financial services was on course to deliver SMEs with efficient access to new capital providers, the pandemic highlighted the fragility of their supply chains. As they emerge, their ability to recover and protect capital, while boosting their appeal to the lending community will be crucial.”
“Capital Reports will make an unprecedented and timely contribution to SMEs’ ability to survive, and grow, in the UK within the coming months, in South Africa in Q4 with more countries to follow.”
Yusuf Ozdalga, London Partner at QED Investors, noted:
“Capitalise’s unique platform helps accountants better serve their clients by demystifying and streamlining the funding process, and bolsters their position as trusted advisors. This is an exciting stage in the Capitalise growth story and we are excited to be a part of it.”