European monetary companies platform Finom has issued its first credit score line to a small enterprise within the Netherlands, marking the corporate’s first foray into direct lending.
The allocation is a part of the Dutch firm’s pilot on-demand funding program for small and medium-sized companies.
Learn extra: Macquarie launches European direct lending platform
“We’re addressing a vital hole in financing for entrepreneurs and freelancers whereas sustaining full management over the client expertise and credit score high quality,” mentioned Finom’s chief government Andrew Petrov.
“Entry into lending represents a big step in our path to construct a complete monetary ecosystem for European companies.”
Learn extra: Navigating Europe’s different credit score market
Finom makes use of a proprietary scoring engine to allow automated credit score selections shortly. The corporate goals to handle a funding hole within the Dutch market, the place small companies and freelancers contribute 61 per cent of gross worth added to the economic system however face vital boundaries to accessing credit score.
The preliminary pilot can be obtainable to pick out present Finom clients who’ve been with the platform for at the least three months. The corporate plans to increase throughout key served markets and to new clients in subsequent phases by the top of 2025.
The initiative is led by Finom Development, the corporate’s devoted credit score options division.
Learn extra: Personal credit score market set for vital progress in 2025