Capitalise.com, a digital ‘super platform’ that allows accountants and their SME clients to access capital with a suite of credit and risk tools, has raised £10 million from Experian, QED Investors, Gauss Ventures, Hambro Perks and Post Finance.
The investment will support the launch of Capital Reports, an entirely new, integrated risk management service that takes up where traditional credit reports leave off.
Powered by Experian and embedded within an accounting service and SME balance sheet, Capital Reports allows accountants to protect their SME clients from unforeseen risks of their clients’ and suppliers’ credit positions by warning of potential defaults, it analyses what is available to a business and its propensity or need to borrow, and provides real time access to a curated panel of mainstream and alternative providers.
Half a million UK SMEs have cash reserves of 4 weeks or less. Of those, some 230,000 are at high risk. Their average account balance is £45.000 but the average SME has £30k in outstanding delayed payments: with little idea about when, or if they will be paid. A stronger understanding of the financial risks posed by the suppliers and clients on whom they depend makes SMEs more resilient while improving their own credit rating, allowing easier access to capital at more attractive pricing from both mainstream and alternative finance providers.
Capitalise CEO and Co Founder Paul Surtees says; “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 available on the Capitalise platform which underpins the digitisation and access to capital of over 1,800 UK accounting firms and has delivered over £1billion of offers from its panel of 200 capital providers. Delivery will be through a free and paid subscription model. On launch it will be available to approximately 500,000 SMEs via their accountants and a further 500,000 via API and open banking partnerships.
Capitalise CPO and Co Founder Ollie Maitlaind says; “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 says; "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".