Monday morning, SMB lender Lendflow announced a partnership with data analysis platform Ocrolus to quickly determine borrowers’ viability and provide critical access to capital.
Lendflow decided to leverage Ocrolus’ document automation technology to search bank statements, W-2s, and business tax returns to provide critical insight into a business’s revenue and balances.
John Forrester, SVP of product at Ocrolus, said that Lendflow could use the platform to enable every partner firm to get cheaper access to credit.
“In a challenging economic environment with rising interest rates, small businesses are finding it difficult to access credit from traditional financial institutions tightening lending criteria to mitigate risk,” Forrester said. “Lendflow has stepped in to enable every lender, fintech, or SaaS company serving SMBs to provide faster, easier, and cheaper access to credit.”
Borrower data insight
Ocrolus provides insight from borrower data on cash flow to determine where a loan application should be routed within its lender network, the company release said. Lendflow also uses individual cash flow metrics provided by Ocrolus within its credit decisioning engine, which enables lenders to process SMB credit applications efficiently.
In a release, Ocrolus wrote that lending industry leaders for faster lending decisions and AI-powered automation. Ocrolus has more than 200 institutional customers across small and mid-market. The firm reported adding 40 new customers in the first half of 2022. The company said it processes more than 200,000 small business loan applications monthly.
Jon Fry, CEO and Co-Founder of Lendflow, said the partnership is a win-win: the Lendflow marketplace will help Ocrolus customers access SMB funding.
“Ocrolus has enabled us to drive efficiencies and automation at scale,” Fry said. “With Ocrolus, our customers can launch new credit products and get to market quickly, as cash flow analysis is at the core of the decisioning process. In turn, they can help their SMB customers with seamless and faster access to the financing they didn’t have before.”
Digital lending and credit SaaS
Ocrolus is a document automation platform that powers digital lending, and the firm said it automates credit decisions across small business, mortgage, and consumer lending. Financial services firms use Ocrolus tech to make decisions with proprietary data and detect fraud with what the firm called unparalleled efficiency. The company has raised over $100 million across four funding rounds through a Series C.
Lendflow provides embedded credit infrastructure for fintechs, lenders, and SaaS platforms to build, embed and launch credit products.
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The firm uses a “decisioning” engine that aggregates data to make and monitor decisions, assigning scores for a marketplace of lenders.
Fintechs use Lendflow to launch credit products within days, the company said. SaaS companies can increase customer engagement and retention with embedded credit, lenders can expand their reach to qualified SMBs, and SMBs can quickly access capital to power their growth.
