Alchemy enters the commercial lending space with fully integrated financing software to help commercial lenders and small businesses automatically approve applicants through our integrated decision engine and service platform.
IRVINE, Calif., April 6, 2022 /PRNewswire/ — Small business lending landscape
Small and medium-sized enterprises (SMEs) are the backbone of the global economy. They play a major role in economic development, job creation and innovation. In addition, SMEs create up to 50% of jobs worldwide and account for nearly 90% of global trade.
According to research, entrepreneurs and business owners will create more than 600 million jobs over the next 10 years, 70% of which will be new jobs worldwide.
Small Business Financing
Today, small business owners are less likely to receive financing from large national or international banks. Instead, they rely on their own savings to start their business.
According to the International Finance Corporation (IFC), there are 65 million small businesses or 40% of all SMEs worldwide that have unmet financing needs. In other words, small business owners need financing to give them the boost they need to grow and expand their business.
Credit Information Infrastructure and Software Platform
There are many emerging markets such as Latin Americawho have begun to explore the credit information infrastructure where lenders and finance companies can secure small businesses by accessing the credit history and banking transactions of the SME.
Alchemy with other partners in Latin America and around the world have created white-label software that can help launch lending companies to begin offering much-needed financing products to millions of SMEs around the world.
Alchemy has helped develop government-backed lending systems and automated crucial elements of small business lending decision points.
To properly underwrite a small business, lending software must be able to automatically verify the small business’ corporate information as well as the personal identity of the true owner. We can automatically verify the personal identity of all small business owners to provide a high level of confidence that these applicants are using their identity.
Cash flow and accounts receivable
Cash flow is another critical part of the SME loan underwriting decision. Checking identity, personal and business credit tells us about the history and behavior of the business, but does not necessarily tell us about the current financial health of the business.
Alchemy has integrated with partners such as Codat and Plaid, which offer a deep dive into a company’s cash flow and financial stability.
Alchemy launches SaaS platform for SME lending
We’ve spent years perfecting our automated application process, decision engine and workflows that allow lenders to negotiate with their borrowers before signing a final offer.
Our powerful loan management system can handle lines of credit, installment loans, and income-based repayment structures.
The Alchemy Lending System covers repayments, payment reminders, and collections modules to help lenders stay on top of their portfolio and investment.
Contact us for a demo or walk through our system yourself by visiting smb.alchemylms.com
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