capexpand Use Social Media to Underwrite Online Businesses
LONDON, January 31, 2013
LONDON, January 31, 2013 /PRNewswire/ --
capexpand, one of the UK's fastest growing providers of fast working capital
to online sellers, talks about how big data can lead to better lending
Academics call it the "Lemon Gap", it's the difference between the perceived
and actual risk of small business loans and it has always been a problem for
lenders. capexpand is looking to squeeze this gap with superior class leading
"We're a technology business first and a finance business second," said Mark
Hannay, capexpand's Chief Operating Officer. "When making a loan application,
our decision engine uses thousands of bits of data to assess an application;
however, quantity of data is only part of the story. You have to know what to
do with it to make the best lending decision."
The application process is built on the philosophy that encouraging a
potential applicant to share as much data about themselves and their online
business reduces risk.
If a merchant sells on eBay then linking their capexpand account to their
PayPal and eBay account via an API allows capexpand to crunch all trading
history, customer feedback and financial data of the business. If the business
owner also adds their personal Facebook, Twitter and LinkedIn profile then a
more complete picture can emerge reducing uncertainty and potentially
improving the amount and or terms capexpand can offer.
Other pieces of data that flow into the algorithms the business has built
include traditional credit reports and online ID verification from the major
credit reference agencies as well as more niche data providers. In the future
the firm plan to give customers the ability to link their business current
account to increase the power and speed of underwriting.
About capexpand ( http://www.capexpand.com )
capexpand was established in late 2012. Based in central London the founding
management team are all self-confessed geeks passionate about technology and
how it can make things work in the simplest most straightforward way. The team
has been active in the personal finance space since 2009 and have built a good
blend of disruptive technology and superior class leading credit decisioning
to give choice, control and flexibility to online sellers looking for credit.
For further media information contact:
capexpand firstname.lastname@example.org +44(0)20-7183-0433
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