5 FinTechs leveraging AI to reinvent SME Lending in the UK

By Gloria Methri

A new wave of FinTechs and neobanks has been disrupting the SME lending ecosystem by embracing digital technology, data, and advanced analytics tools such as machine learning and AI. FinTech advancements allow lenders to accelerate their payment processing time and offer personalized experiences based on individual mortgage seeker’s needs.

They can automate credit decision-making to provide accurate, real-time approvals, allowing SMEs to gain access to funds quickly. Automating data collection, risk decisions and pricing, enables lenders to automate approvals and ensure funding is in hand within a matter of days.

Their products tend to be more flexible and more personalized to each SME’s unique needs, allowing them to not only survive but fully adapt to a changing, uncertain environment.

Here are five FinTechs utilising AI to offer streamlined lending services in the UK

• Capify

Capify is a FinTech company specializing in providing alternative financing options to SMEs in the UK. Through their AI-powered platform, Capify offers merchant cash advances and business loans based on future card sales and revenue projections. Their innovative approach to SME lending allows businesses to access funding quickly and repayments are structured to align with cash flow, making it easier for SMEs to manage their finances and pursue growth opportunities.

• Capital on Tap

Capital on Tap is a FinTech company that offers business credit cards and flexible financing solutions to SMEs in the UK. Its AI-powered platform analyzes transaction data and business performance metrics to provide tailored credit limits and personalized financing options. By leveraging AI algorithms, Capital on Tap simplifies the application process and offers quick access to funds, enabling small businesses to meet their financial needs efficiently.

• ClearScore

ClearScore is a financial technology company that offers credit scoring and financial management services to SMEs in the UK. Leveraging AI and machine learning algorithms, ClearScore provides real-time credit assessments and personalized lending recommendations to small businesses. Their platform helps SMEs understand their credit profile and access suitable loan products from a network of partner lenders, streamlining the borrowing process.

• Liberis

Liberis is a FinTech company specializing in providing revenue-based financing to SMEs in the UK. Their AI-powered platform evaluates business performance metrics, such as sales data and cash flow, to offer funding based on future revenue projections. This innovative approach allows Liberis to provide accessible financing options to small businesses without requiring traditional collateral or fixed repayment terms.

• Kriya

Kriya, formerly MarketInvoice is an online invoice financing platform that harnesses AI to empower SMEs by unlocking working capital tied up in outstanding invoices. Using machine learning algorithms, Kriya assesses the creditworthiness of invoices and advances funds to businesses against their unpaid invoices. This AI-driven approach enables SMEs to improve cash flow management and accelerate growth without waiting for invoice payment terms.