Faster financing finder Capitalise raises £10 million

London’s self-described ‘super platform’ for accountants and their SME clients, Capitalise has raised £10 million. The new funding is slated to support the launch of an integrated credit protection service, Capital Reports. Since its founding in 2015, the startup has capitalised on £13.5 million in funding.

In the UK alone, approximately half a million SME’s have up to a month’s worth of cash reserves on hand at any given point. Of these 500,000 businesses, almost half of them are at high risk. With outstanding delayed payments making the balance sheet a moving target, improving their own credit rating, and thus, easier access to more capital (at better rates) can be a bit of a challenge for these businesses.

Powered by industry stalwart Experian, Capitalise’s new offering will give SME’s an accurate assessment of clients’ and suppliers’ credit position and warns of any potential defaults.

“Everybody has had to think differently during the pandemic, including us, so we created a virtuous circle in which SMEs and their advisors are shielded from risk and helped to grow,” commented co-founder and CEO Paul Surtees.

Capitalise is in use by over 1,800 accounting firms across the UK, and has seen over £1 billion of offers from 200 capital provider partners pass through its doors. Upon launch, the new credit protection service will be available to some 500,000 SME’s via their accountants, and another 500,000 via API and open banking partnerships.

Co-founder Ollie Maitlaind adds, “While the digitalisation of financial services was on course to deliver SMEs with efficient access to new capital providers, the pandemic highlighted the fragility of their supply chains. As they emerge, their ability to recover and protect capital, while boosting their appeal to the lending community will be crucial. Capital Reports will make an unprecedented and timely contribution to SMEs’ ability to survive, and grow, in the UK within the coming months, in South Africa in Q4 with more countries to follow.”

Capitalise’s new capital was provided by Experian, QED Investors, Gauss Ventures, Hambro Perks, and Post Finance.