Codat, the universal API for small business data, today announced the general availability launch of Assess, its new flagship risk product that enables smarter credit decisions on small to medium-sized businesses with real-time customer data via a single API. Codat built Assess in response to lender requests for a product that would support faster business decisions without increasing risks. Since Assess was made available to existing clients, 25 financial service providers have already made use of the new product, and it has been used in the underwriting process for more than 271 small businesses.
Assess offers multi-platform coverage, the ability to create and manage multiple integrations and pulls real-time banking, commerce and accounting data from software customers already use. Codat cross-references data sources in order to ensure accuracy.
“Over the last 5 years, many millions of financial datasets have been processed via Codat’s infrastructure,” said Pete Lord, Codat’s CEO. “The financial ratios, intelligent categorization and validation that Assess offers is the culmination of the scale of our experience and copious feedback from customers. It will help credit providers underwrite faster and smarter, providing a lifeline for some of the millions of businesses in the US who have fewer than 15 cash buffer days.”
Before Assess, lenders had first to collect, enrich, and verify SMB data. This made underwriting tedious and time-consuming. There were many ratios to be categorized and calculated manually. This meant that the process was slow, prone to error, and difficult to scale. Assess allows SMB customers access their data quickly and automatically enriches the data with ratios and metrics. These can then be used to plug into credit models. This speeds up the process of underwriting and helps the SMB get the finance they need faster.
“We’ve traditionally had to oversee ratios and metrics calculations that are fed into our scoring engine. Financial reports that are not accurate or properly categorized can lead to discrepant scoring, and ultimately customer loss. Dan Shapir (CTO, co-founder of Precise Finance),. “We recently had the privilege of being part of the beta testing for Assess, which introduced a set of pre-calculated ratios and metrics and an auto-categories feature. It has reduced our development resources dramatically and yielded precise account classification, enabling us to increase customer acquisition.”
According to the U.S. Small Business Administration (USBA), the number of small-sized businesses in America grew to 32.5million last year. This underscores the need for data and tailored lending to this market.
Codat is continuing to grow its customer base, strategic growth initiatives and launched Sync for Commerce last month. It automatically synchronizes sales information with accounting platforms. Sync for Commerce is another product designed to simplify the reconciliation process and reduce the administrative burden for SMBs.