SYDNEY--(BUSINESS WIRE)--SME Credit Score today launched a first of its kind credit scoring tool for Australian small and medium sized enterprises (SMEs). The new platform makes it easier for SMEs to access the finance they need at the best possible rate by educating them on their business credit score and connecting them with the most appropriate lender. It is free for SMEs seeking finance.
Co-founders James Watson and Jonathan Raymond said better access to finance would support SMEs invest in innovation and compete locally and globally.
“Small businesses cite lack of access to funds as the number one barrier to innovation – no surprise, given 44% of small business loan applications are rejected. Also, with business lending remaining flat over the past year, it is a growing concern that SME lending is declining. In the face of this, we want to provide businesses with valuable insight into their creditworthiness and give them the confidence to apply for the right loans,” said Watson.
“We found a major impediment to SMEs being able to access the right finance at the right rate is borrowers’ lack of knowledge about their business credit score. This can lead them to apply for loans which are unsuitable for their business and credit rating. As a consequence, some borrowers may have their applications declined by three or four lenders before securing finance,” he said.
SME Credit Score reduces this risk. Those seeking finance can visit the site and access their business credit score within minutes. They are then matched with an appropriate lender based on their score and finance requirements. The underlying credit scores are sourced from Veda while the lenders are selected from a growing panel of more than 60 lenders, including Prospa, Scottish Pacific, and a range of other bank and non-bank lenders.
Watson and Raymond, who also co-founded SME business loan brokerage Merchant Cash, have witnessed the challenges SMEs face and wanted to make the funding process easier.
Raymond said, “We encountered a large number of SMEs seeking credit through Merchant Cash who were unaware of their business credit score. Many borrowers do not even know such a score exists and even fewer realise the damage they can do to it by applying for unsuitable loans.
View the new platform at https://smecreditscore.com.au/.
