CRIF and Penny Partner on Instantly Paid Invoices

CRIF, a provider of credit information in Europe, has partnered with invoice financing provider Penny to allow UK SMEs to have their invoices paid instantly, according to a company statement.

The new partnership combines Penny’s instant payment services with CRIF’s credit scoring solution.

The companies explain that Penny’s invoice financing solution works by allowing a business to advance money against the amount due from their invoiced customers. The invoiced customer then pays Penny directly with terms typically over 30, 60, or 90 days. However, if a true picture of a small businesses’ financial situation is unavailable, this can lead to them being declined. The new service utilizes CRIF’s Credit Passport, which uses open banking data to provide a secure way of speeding up the decisioning process.

Apparently, the decisioning process can be cut to less than 30 seconds with funds available in 24 hours. The open banking process reduces risk while expediting cash to an SME.

Sara Costantini, Regional Director for the UK & Ireland at CRIF, said that SMEs are the backbone of the economy but the challenging economic environment can create challenges:

“Compounding this is the fact that some businesses are denied access to financial support when lenders are unable to build a clear, accurate picture of their finances – particularly if they haven’t been trading long. At CRIF, we want to solve that problem. That’s why we’ve partnered with Penny to bring the power of open banking to invoice financing, so more small businesses can get their invoices paid instantly, helping with cash flow while improving future creditworthiness”

Colin Gunnell, CEO of Penny, shared that UK SMEs have long been underserved by banks and lenders:

“There is a huge portion of the SME market that is not able to access business finance products due to the inability of conventional funders to make real time decisions. Penny and CRIF have both individually identified this as a universal problem in the UK which needs to be resolved, building sophisticated platforms to breach the funding disadvantage experienced by SMEs.”

The new service will be available to customers in June.

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