Fintech challenges Veda, Dun & Bradstreet
CreditSME – founded by Adam Welsh, a former M&A and debt at Origin Capital Group and Goldman Sachs – is offering a sort of broker role, giving them a credit rating and then advising them on which lenders would be the best for them – be it traditional bank or online unsecured lenders.
CreditSME, launching on Wednesday, is the latest in an explosion of ex investment banker-led fintechs targeting the small businesses traditionally treated with disdain by the banks.
But it’s not lending them money, rather it wants to give SMEs (and their lenders) easy access to a credit rating, just like a big business.
There are various operators that do this already – including Veda Group and Dun & Bradstreet. But CreditSME’s primary customer is the small business rather than the bank, so it will get access to all their financials, which it claims will make for a more accurate assessment more akin to the big ratings agencies.
Typically, an SME will go to their bank to ask for a loan, with a small number considering the numerous online alternatives that have cropped up in recent years.
But CreditSME – founded by Adam Welsh, a former M&A and debt banker at Origin Capital Group and Goldman Sachs – is offering a sort of broker role. It gives them a credit rating and then advises them on which lenders would be the best for them – be it traditional bank or online unsecured lenders.
It says it has 15 lenders – banks, and non-bank lenders – signed up to accept its credit ratings, saving them the trouble of doing the credit checks themselves.
CreditSME will make its money by charging a flat fee to the borrower starting at around $160 for a rating, ranging up to around $500 for advice on how to maintain their credit rating, and which types of loans will be best for them.
