With over 500,000 UK SMEs facing significant financial distress because of COVID-19, the partnership between invoice insurance provider Nimbla and credit risk assessment platform Wiserfunding could provide some peace of mind.
Together, they have set out to improve the availability and pricing of commercial credit insurance, with the goal to ensure that SMEs can continue trading and prevent the UK economy from stalling.
Nimbla has previously made a name for itself by protecting SMEs against insolvent customers with trade credit insurance on a per-invoice basis. The thing that makes Nimbla stand out from traditional insurers is that the company’s invoice insurance allows businesses to review the risk rating of each invoice and insure them individually. If a customer becomes insolvent and an invoice goes unpaid, Nimbla will quickly replace the money that has been lost.
Similarly, Wiserfunding has also established itself in the market by empowering businesses to get better assess the credit profile of SMEs by analysing more comprehensive data.
The partnership will see Nimbla integrate Wiserfunding to strengthen its ability to more accurately assess and appropriately price the risk of insuring invoices. This supports its goal of safeguarding SMEs against insolvent customers, particularly relevant during economically challenging times such as the COVID-19 pandemic where SMEs will be reliant on cash flow to maintain liquidity.
“SMEs can become vulnerable overnight if their customers become insolvent, and this risk is exacerbated by the challenging economic conditions that COVID-19 has created,” said Flemming Bengtsen, CEO and founder of Nimbla. “We are integrating Wiserfunding into our platform to improve our risk management and enable quicker and more accurate insurance decisions, reducing the risk of defaults. Fundamentally, this will allow SMEs to trade with security and confidence.”
Gabriele Sabato, co-founder and CEO of Wiserfunding, added, “With 500,000 SMEs already in significant financial distress, we need to move quickly to protect the backbone of the British economy and ensure the right companies are protected from harm. Commercial credit insurance is the key to accelerating economic recovery, but trade credit is facing significant challenges and may disappear entirely during this difficult economic period – increasing the magnitude and length of the recession we are about to enter.
“Nimbla’s mission aligns with Wiserfunding’s in ensuring that credit and insurance are delivered to the right SMEs at the right price. By combining the best innovations from the FinTech, insurance and risk management worlds, we will be better positioned to support UK SMEs and mitigate the impact of the recession.”
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