Lemon and WiserFunding to speed up SMB credit decisions

This collaboration is set to transform the credit decision-making process for SMBs by integrating WiserFunding’s data analytics into Lemon’s platform. The integration is expected to reduce the pre-screening time for prospective borrowers from the traditional six weeks to just 24 hours.

WiserFunding’s alternative data capabilities will enable Lemon to gain immediate insights into borrowers, simplifying the credit underwriting process, particularly for Software-as-a-Service (SaaS) transactions. This advancement addresses a key challenge for SMBs, which often face difficulties in securing credit compared to larger businesses.

Lemon is also progressing towards its goal of supporting SMBs in managing their SaaS expenditures, following a pre-seed funding round of GBP 500,000 earlier in 2024. The funding round was led by SFC Capital, Pitchdrive, and SyndicateRoom, with support from angel investors such as Nick Dodd and Kimberley Waldron.

The partnership with WiserFunding is anticipated to improve Lemon’s ability to provide faster and more accurate credit assessments, thereby benefiting SMBs by facilitating quicker access to necessary financing and optimising their SaaS-related expenditures.

SMBs credit challenges

SMBs often face significant challenges in securing credit compared to larger enterprises. One of the primary difficulties is the extended timeframes required for credit approval. Traditional credit assessment processes can take several weeks, primarily due to the extensive documentation and thorough evaluations needed. This delay can be detrimental to SMBs, which frequently require quick access to funds to capitalise on growth opportunities or manage operational needs.

Additionally, SMBs encounter higher barriers in the credit application process. Unlike larger corporations with established credit histories and substantial financial resources, SMBs may lack extensive credit records or have less predictable revenue streams. This disparity can result in more stringent requirements, higher interest rates, and a greater likelihood of rejection. These hurdles are exacerbated by traditional lending institutions' risk aversion, which often leads to a preference for lending to larger, more established businesses with proven track records.