Wiserfunding, a London-based provider of credit risk assessment for SME lenders, has secured a £3 million investment from BGF and signed up Revolut as a client.
Founded in 2016 by Gabriele Sabato and Edward Altman, creator of the Altman Z-score, Wiserfunding has built a proprietary risk assessment platform that uses AI to provide accurate, reliable and unbiased credit risk assessment to ascertain the credit quality of SMEs and private firms.
The firm says its methodology has proven to be up to 30% more accurate than competitors, tapping into financial history as well as publicly available structured and unstructured data including corporate governance, management experience and macroeconomic indicators.
The startup is profitable, with more than 60 clients - bank and non-bank lenders, insurance firms, payment providers and asset managers - across three continents.
Jason Snelling, business credit manager at new customer Revolut Business, says: “At Revolut Business, we are using the Wiserfunding Rating Model to support the risk assessment of our business customers exposing us to credit risk. We also plan to deploy this solution into our underwriting process to expedite decisions in the future."
The new funding will be used to push international growth and to create new products for the supply-chain and procurement world.
Says Sabato: “This investment, alongside BGF’s expertise, will provide strategic support as we expand globally and will enable us to support the recovery of SMEs crying out for on-demand finance."