Funding Xchange closes its £1.5m Series A

Funding Xchange has closed its Series A on £1.5m with Calibrate Management and Kimera leading the investment.

The UK-based company has built underwriting technology to transform credit access for small businesses by using data made available through open banking, cloud accounting and other sources. Xchange offers banks, alternative lenders, and specialist financing providers with ‘one-click’ funding applications.

Financing options on offer include business cash, flexible credit lines, invoices, merchant funding, non-profit and secured and unsecured business loans.

This equity injection will be used to further development of its automated decisioning technology and incorporating live transactional data sources. Funding Xchange also hopes to boost digitalisation and automatic underwriting, in order to lower costs and drive speed.

Funding Xchange co-founder and CEO Katrin Herrling said, “The SME finance landscape is changing rapidly – regulatory reform, open banking and innovation from lenders are all helping to create transparency and are enabling small businesses to take control of their finances. The role of Funding Xchange in this changing eco-system is to provide solutions that help SMEs to grow, by accessing the best finance terms that are available to them.”

This deal comes as the company forms a partnership with payroll platform Sage to implement Open Banking and provide SMEs with finance options through a single click option.

Sage executive vice president Seamus Smith said, “Through our partnership with Funding Xchange we hope to not only benefit our customers who will access the best possible lending option for them, but also the banks & lenders who will see a significant reduction in their cost of acquisition and credit decisions.”

Last year, Calibrate Management took a minority stake in the alternative finance platform Crossflow Payments. The London-based company offers suppliers with alternative channels for supply chain financing.

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