Capitalise raises £10m to launch Capital Reports

Digital platform has raised £10m from Experian, QED Investors, Gauss Ventures, Hambro Perks and Post Finance to support the creation of Capital Reports, an integrated risk management service.

Capital Reports allows accountants to protect SMEs from unforeseen risks of their clients’ and suppliers’ credit positions by warning of potential defaults, analysing what is available to a business and its propensity or need to borrow, and providing real-time access to a curated panel of mainstream and alternative providers.

It claims that a stronger understanding of the financial risks posed by the suppliers and clients on whom they depend on makes SMEs more resilient while improving their own credit rating, allowing easier access to capital at more attractive pricing from both mainstream and alternative lenders.

The service will be available on the Capitalise platform through a free and paid subscription model.

On launch, it will be accessible to more than 450,000 SMEs via their accountants and many more via API and Open Banking partnerships, delivered through a free and paid subscription model.

Capitalise CEO and co-founder, Paul Surtees (pictured above, left), commented: “Everybody has had to think differently during the pandemic, including us, so we created a virtuous circle in which SMEs and their advisers are shielded from risk and helped to grow.

“Powered by Experian’s credit data, propensity modelling, and Open Banking, we underline our commitment to our accounting community by bringing their data to life and supporting their SME clients, in bad times and good”.

Ollie Maitlaind, CPO and co-founder of Capitalise (right), added: “Managing credit risk is central to lender activity, but SME owners typically overlook it.

“This restricts their growth and jeopardizes their survival.

“While the digitalisation of financial services was on course to deliver SMEs with efficient access to new capital providers, the pandemic highlighted the fragility of their supply chains.

“As they emerge, their ability to recover and protect capital, while boosting their appeal to the lending community, will be crucial.

“Capital Reports will make an unprecedented and timely contribution to SMEs’ ability to survive and grow in the UK within the coming months, in South Africa in Q4, [and] with more countries to follow.”

Yusuf Ozdalga, London partner at QED Investors, said: "Capitalise’s unique platform helps accountants better serve their clients by demystifying and streamlining the funding process and bolsters their position as trusted advisers.

“This is an exciting stage in the Capitalise growth story and we are excited to be a part of it.”

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