Funding Xchange and Experian team up to help banks triage CBILS lending enquiries
Funding Xchange and Experian have launched an online service for banks so businesses requiring funding during the Covid-19 pandemic can check if they meet their lending criteria.
The service instantly assesses funding applications from businesses and informs them of which loans they meet the lending criteria. It covers both CBILS (Coronavirus Business Interruption Loan Scheme) and other loans. Once a business has chosen a loan, it digitally completes the application process for them.
Funding Xchange’s data shows four in five of business loan applications don’t meet lenders’ qualifying criteria, for reasons including the amount requested or the company’s location.
Businesses can use the service to find out if they are eligible for funding from their own bank, or more than 40 other lenders who are offering finance. Funding Xchange and Experian are currently in talks with major banks across the market.
The service is free for applicants to use and is never more expensive than going direct to a lender. Businesses will be able to understand if they meet the qualifying criteria for a loan so it’s worth making an application, reducing the time spent by both applicants and lenders on unsuccessful applications.
Katrin Herrling, Co-Founder and CEO of Funding Xchange, said: “We are delighted to be working with Experian to provide a solution to alleviate the pressure on banks and help small businesses get the funding they need at this critical time.”
James McGarva, Managing Director of Business Information Services at Experian, said:
“Businesses have no time to lose in getting the funding they need to keep their company afloat. The Covid-19 pandemic has spiked demand for finance at a time when banks have been forced to close their doors and many staff are unable to work. We’ve worked with Funding Xchange to connect businesses in need of finance with the lenders who can help them through this crisis.”
The government has moved to address the cashflow crisis that 20%* of businesses are facing in April. However, since the launch of the Chancellor’s Coronavirus Business Interruption Loan Scheme (CBILS) some banks have experienced a 40-fold increase in the number of enquiries at a time when staffing levels have been affected by the pandemic and branches are closed.
This has left banks with a backlog of funding queries. The added assessments required under the CBILS scheme has led to the creation of offline processes which further slow applications. Businesses who can’t wait for a lending decision then go on to make additional applications elsewhere, exacerbating the problem.
To reduce and manage the operational challenges banks and lenders are facing, Funding Xchange and Experian have worked together to create the online portal. It uses Experian’s Commercial Acumen to help businesses gather and submit transactional data, including management accounts. Funding Xchange’s marketplace capability instantly assesses eligibility for available solutions and surfaces indicative offers, so combined it provides a co- branded solution to help banks triage CBILS enquires.
The solution allows businesses to complete an online application journey to assess their eligibility in minutes for both CBILS and non-CBILS finance. It works out of the box for lenders and does not require technical integration.
Notes to editors
*Corporate Finance Network, via CityAM. April 1st, 2020.
For Funding Xchange:
Sam Coe, Senior Solutions Delivery Manager
Tel: 07717 516531 / Email: Sam.coe@fundingxchange.co.uk
For Experian:
Ade O’Connor, Senior PR Manager, Corporate & Business, Experian UK&I Tel: 07583 085 796 / Email: ade.o’connor@experian.com
About Funding Xchange
Funding Xchange is an intelligent decisioning platform that transforms efficiency in SME lending distribution by holding lenders’ underwriting models and integrating with their decisioning. Funding Xchange accurately mirrors lenders’ decisioning based on their credit policies, affordability models and risk pricing. By using access to live transactional data, including closed group CRA data, Funding Xchange provides accurate, personalised terms for SMEs – and are never more expensive than going direct to a lender. By holding decisioning within the Funding Xchange platform, applicants’ personal data is protected, and businesses have full control over the funding process.
Through deep integration with lending platforms, businesses can generate quotes within 4 minutes, and be fully approved for funding within 10 minutes, without leaving the Funding Xchange site.
Its white label ‘lending in a box’ solution also digitises key steps in the underwriting process so that banks and lenders can quickly and cost-effectively serve business customers.
About Experian
Experian is the world’s leading global information services company. During life’s big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organisations to prevent identity fraud and crime.
We have 17,200 people operating across 44 countries and every day we’re investing in new technologies, talented people and innovation to help all our clients maximise every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group.