Credit risk

London’s Wiserfunding secures £ 3million to disrupt SME credit risk space

Wiserfunding, a London-based fintech company specializing in assessing SME credit risk, has secured a £ 3million investment from BGF, the UK’s and UK’s most active growth capital investor ‘Ireland.

How will the funding be used?

The company will use the funding to accelerate its international expansion and strengthen its global position.

Wiserfunding will use part of the investment to create new products for the supply chain and the purchasing world, as well as to add unique new features for financial institutions.

Disrupt the credit risk space of SMEs

Founded by Dr Edward Altman and Dr Gabriele Sabato, Wiserfunding’s mission is to disrupt the credit risk space for SMEs.

The company’s proprietary risk assessment platform uses AI to provide accurate, reliable and unbiased credit risk assessment to determine the credit quality of SMEs and private businesses.

Its unique methodology has been shown to be up to 30% more accurate than its competitors, the company says.

The platform uses financial history as well as publicly available structured and unstructured data, including corporate governance, management experience, and macroeconomic metrics.

The model suite is specially designed for SMBs, offering geographic and industry segmentation to maximize predictive power.

Helped 30,000 SMEs

Over the past 12 months, Wiserfunding clients have helped more than 30,000 SMEs access nearly £ 3 billion in financing. The company currently serves more than 60 clients on three continents, a mix of bank and non-bank lenders, insurance companies, payment providers and asset managers.

Clients include – Revolut Business, Bank North, Assetz Capital, ArchOver and Fasanara Capital. Notably, Wiserfunding is one of the few profitable fintechs in the UK.

Jason Snelling, Business Credit Manager at Revolut Business, said: “At Revolut Business we use the Wiserfunding scoring model to support the risk assessment of our business clients who expose us to credit risk. We also plan to deploy this solution in our underwriting process to speed up decisions going forward. The team responded to our needs and worked constantly to ensure the right solution for our super global application.

Gabriele Sabato, CEO of Wiserfunding, said: “Access to capital is essential to ensure a post-pandemic recovery for SMEs around the world, as the current economic landscape means that the financial sector needs a clear vision and precise risk. This investment, combined with BGF’s expertise, will provide strategic support to our global expansion and allow us to support the recovery of SMEs seeking on-demand financing. With sales increasing eightfold in just two years, we are closer than ever to achieving our mission of becoming the market benchmark for SME risk assessment.

James Austin of BGF said: “Wiserfunding is a really exciting business, with a clear path to providing SMEs with better access to finance. The team’s credentials and the quality of the results are second to none. With funding from BGF, we will be able to accelerate the ongoing commercial deployment and pursue the development plan that will continue to add depth and breadth to the product. This investment is also a great addition to BGF’s growing FinTech portfolio, which we hope to expand significantly in the near future. British fintech should be the envy of any global market and Wiserfunding is a prime example. “

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