UK-based Hokodo has partnered with Fuse to improve credit decisioning and offer finance options for SMEs. Through this partnership, Hokodo utilises Fuse’s credit risk and Income Verification tools to evaluate businesses’ financial position, provide more personalised products, and improve value on B2B borrowing.

Fuse’s solutions provide lenders with a more accurate profile of a borrower’s financial vulnerability and affordability, allowing a more customised and appropriate credit product offering. By using Fuse’s tools, Hokodo can offer finance options to businesses that previously were excluded from credit, including sole traders, who are not scored by traditional credit bureaus and struggle to access credit. According to the latest figures from the ONS, there are more than three million sole traders operating in the UK, emphasising the scale of the micro-business finance market.

Moreover, figures from the Federation of Small Businesses show that demand for business finance is projected to increase by 81%, with finance brokers expecting a rise in the second half of 2023. On the other hand, 84% of them also said that high street banks were hesitant to lend to small and medium-sized businesses (SMEs). More information about the partnership Hokodo can streamline the process for its existing clients by using Fuse’s customer income verification tools.

This enables the expansion of credit lines by analysing repayment patterns on previous loans. Officials from Fuse stated that by utilising AI transaction analytics, Hokodo can unlock access to additional funding streams for businesses and support groups that are excluded from mainstream options. Moreover, improving the decision-making process and offering more customised credit products with lower-risk defaults may help Hokodo in providing the financial support businesses need to begin their expansion journey. In addition to their BNPL products, Hokodo now has access to Fuse’s Open Banking data that will not only help in risk decision-making but also understand buyer behaviour in a B2B context. The company’s objective is to enable small enterprises to access the credit they require for their business growth.

Hokodo’s past developments With offices in the UK, France, and Lithuania, the company offers a scalable, all-in-one Buy Now, Pay Later (BNPL) payment solution for B2B businesses. Back in May 2023, Hokodo entered a partnership with Mangopay to augment the payment offering for B2B platforms. With the integration of Hokodo’s solutions, companies that use Mangopay’s payment infrastructure can provide their customers with flexible and transparent payment options. Hokodo also received a Series B funding extension from financial services provider Citi to support its growth.

Also, the funds support Hokodo in its expansion plans into new geographic regions, in addition to the already entered markets, including the UK, France, Spain, Germany, Belgium, and the Netherlands. .