Hokodo taps Fuse to improve credit decisioning for SMEs

By Gloria Methri

Digital trade credit solutions provider Hokodo has partnered with AI-powered transaction analytics firm, Fuse, to enhance its credit offering to businesses in the UK.

The partnership helps businesses to access personalised credit options by combining Fuse’s credit risk and Income Verification tools with Hokodo’s B2B lending capabilities.

Using Fuse’s tools, Hokodo offers finance options to businesses that were previously excluded from credit such as sole traders, who are often not scored by traditional credit bureaus and therefore struggle to access credit.

By utilising customer income verification via Fuse’s innovative tools, Hokodo has streamlined the process for existing customers to expand credit lines by analysing repayment patterns on previous loans.

Hokodo recently became the first B2B BNPL provider with a full European payments licence after the acquisition of a Lithuanian payments business. The B2B lender is now available in seven of Europe’s largest markets. Over the past several months, it has announced a number of key partnerships including collaborations with BNP Paribas, Citi and payment service providers Mangopay and Lemonway.

Using insights formed through the analysis of Open Banking data, Fuse provides lenders with 97% accuracy for transaction enrichment, providing clearer insights into affordability, reduced rate of defaulted loans, and improvements to borrower outcomes.

Sho Sugihara, CEO and Co-Founder of Fuse said, “Hokodo is shaking up the B2B payments space and providing businesses with alternative credit options and we are proud to support this mission to improve the business finance market. By utilising AI transaction analytics, Hokodo can now unlock access to additional funding streams for thousands of businesses, as well as support groups such as sole traders who are typically excluded from mainstream credit options.

“By improving decision-making and offering more personalised credit products with lower risk of defaults, Hokodo can provide the financial support needed for businesses looking to kickstart their growth by utilising their innovative BNPL product.”