Nimbla enhances risk modelling through Wiserfunding partnership

The partnership provides Nimbla with high-quality data to enable quicker and more accurate insurance decisions.

As the number of UK SMEs in significant financial distress tops 500,000, our customers and partners will soon have access to enhanced protection against insolvency-linked losses.

Wiserfunding is the latest venture from Edward Altman, the creator of an industry-standard credit risk model, the Z-Score. Wiserfunding’s Artificial Intelligence (AI) enhances SME credit profiling by assessing intangible factors such as corporate governance, management capacity and macroeconomics.

Nimbla’s risk modelling will be even more precise as a result of integrating this technology. The scoring of SMEs by traditional credit bureaus is typically weaker as less data is available, and it is out of date. The partnership provides Nimbla with high-quality data to enable quicker and more accurate insurance decisions. With invoice insurance, Nimbla can help SMEs navigate the current landscape safely.

In fact, research from the British Chamber of Commerce shows that the majority of SMEs have cash reserves of just three months or less. To prevent the UK economy from stalling, this partnership offers SMEs immediate and enhanced insight into credit risk. It’s our shared objective to give SMEs the confidence they need to keep trading.

Both Nimbla and Wiserfunding sit on a fintech task force responding to the chronic need for credit by British SMEs facing cashflow problems during the COVID-19 crisis. Please check back on the blog to see updates on Government SME support schemes as details become available.

Flemming Bengtsen, CEO & Founder of Nimbla, comments:

“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. 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, adds:

“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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