Trade Finance Bank Neotrade was launched in the UK, offering financing to small and medium-sized enterprises (SMEs) using an artificial intelligence (AI)-based scoring system to provide a “personalized financing experience in minutes”.
As FinTech Futures reported on Monday, June 13, the company aims to serve SMEs that are struggling to find financing.
“Over 40% of requests are automatically rejected,” the company said. “In addition, as agile companies, SMEs need a simple, transparent and fast way of financing.”
Neotrade said it serves this underserved market with the aim of shaping “the trade finance market for SMEs in the future and closing the market gap”.
Using a four-step process, Neotrade said it can manage supplier payments, allowing customers to pay immediately based on their chosen payment terms.
See also: Barclaycard and Liberis offer revenue-based finance to SMEs
“We believe that international trade is an important driver of global growth. Businesses should have access to stable cash flow throughout the year,” Neotrade said. “Faced with the unexpected, the usual behavior is to watch, wait and lie down. We want to help businesses stay safe while anticipating all outages.
The launch comes days after small business working capital startup Factris secured €10 million in funding from NN Investment Partners, an asset manager owned by Goldman Sachs.
Read more: Factris obtains 10 million euros to finance the invoices of European SMEs
The Amsterdam-based FinTech offers capital to SMEs through factoring, which allows businesses to instantly get cash from unpaid invoices instead of having to wait months for the invoice to be paid. .
Also last week, payments company Barclaycard and integrated business finance platform Liberis joined forces to offer SME customers access to personalized revenue-based finance.
The London-based Liberis platform has been integrated with partners in the UK, US, Ireland, Sweden, Finland, Denmark, Slovakia and the Czech Republic.
The partnership gives customers access to Barclaycard Business Cash Advance, a new solution to help finance SMEs with fixed-cost financing.