UK’s first online fintech platform launched to help SMEs manage debt and avoid borrowing pitfalls
In a bid to tackle the nation’s £90bn lending gap, the UK’s first purpose-built online alternative finance platform has launched today to help SMEs manage their true debt position and navigate the costly pitfalls of commercial borrowing.
Leeds-based Debeo aims to provide vital support to the thousands of SMEs that struggle to understand their debt situation and run into cash flow difficulties, encounter higher borrowing costs and even face bankruptcy as a result.
The fintech platform holds the SME’s hand throughout the lending process, by uniquely equipping them with the real-time data and insights to help them independently find the right lender and solution. It then assists them with preparing and structuring an application to both increase the likelihood of approval and accelerate the speed with which they receive the working capital.
Debeo will also support the wider UK economy by addressing the growing lending gap that is hindering SMEs and preventing them from accessing funding to drive growth. By providing clearer risk profiling and greater clarity around their true financial position, the platform makes firms more ‘lendable’ and broadens their access to capital beyond high-street banks.
The company is the brainchild of Alex Beardsley who owned a commercial finance brokerage for over 12 years and used her knowledge and experience of running SME-size businesses to recognise the gap in the market and develop the platform.
Alex commented: “With many SMEs confused by taking out multiple loans, overdrafts and asset finance agreements across different lenders, our new platform uniquely uses the latest data and insights to empower better business debt management and financing decisions.
“Most companies of this size unfortunately go into applying for commercial finance without seeing the whole picture, will then operate from a position of desperation and face immense risk as a result. We’re addressing the needs of those firms that simply don’t have clarity over their finances, struggle to access the right funding and don’t have the information at their fingertips to apply for a working capital agreement that meets their business needs and financial situation.
“It can be a minefield and so vital that SMEs understand their borrowing capabilities and are much more informed in advance about the affordability, complexity, covenant risks and potential pitfalls of the alternative finance available.”
As well as directly supporting SMEs, Debeo helps accountants, advisors, brokers and other intermediaries, by giving them full visibility of a client’s commercial debt status. This data transparency around potential business risks and opportunities goes beyond just relationship history and ultimately enables them to match their client with the right lenders and provide much better advice.
From a lender perspective, having a platform that helps SMEs understand their own financial position can reduce the number of incomplete or inaccurate applications, centralise key information within one place, speed up the overall process and connect them with more businesses that meet their specific lending criteria.
Alex added: “I believe Debeo will be a real game changer for many SMEs that are unfortunately making poor commercial finance decisions due to a lack of accurate, accessible data and are running into financial difficulties as a result.
“It will also streamline the entire application process by putting borrowers more in control and equipping lenders and intermediaries with the data and insights needed to deliver the best possible outcome. The wider economy will be in a stronger position as a result, the lending gap will be significantly reduced and SMEs will start to achieve greater financial stability and unlock growth.”