Experian is providing credit reference data and analytical services to support the peer-to-peer (P2P) lender’s speed of service, while helping it make good credit decisions for the growing number of SMEs applying for finance.

Around one third of RateSetter’s active loans are to businesses.

Experian’s Commercial Delphi scorecards have helped the lender assess the potential credit risk of business applicants by gathering a detailed understanding of their payment performance history and their ability to repay the finance applied for.

This has enabled RateSetter to grow the number of applications it processes each month from 150 to over 600.

“Speed and accuracy are right at the heart of what we do,” said Paul Marston, managing director of commercial finance at RateSetter (pictured above).

Paul explained that when a business approached RateSetter for finance, they wanted an answer quickly so they could put their business plans in place.

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“Working with Experian means that we have been able to greatly increase the number of applications that we can process each week without compromising on our credit processes, nor our quality requirements.”

For example, Michael Balance Plastics Limited – a Staffordshire-based supplier to the rubber and plastics sector – secured £50,000 from RateSetter Business Finance to upgrade its office, with the lender completing the due diligence and agreeing the deal within an hour.

Max Firth, managing director of business information services at Experian, added: “Looking at the increase in applications RateSetter has been able to process over a short period of time – and the role Experian has played in helping them – is particularly satisfying when you remember it’s helping small businesses to grow.

“It’s vital that smaller enterprises have as many routes to funding as possible, and our work with RateSetter broadens their options.”

In July this year, RateSetter passed the £2bn milestone in total lending, and last week received full regulatory authorisation by the FCA.