Dancerace launches automatic data dashboard to fast-track SME funding during coronavirus
ABL platform provider Dancerace launched their ‘f3’ app this week to help lenders make faster funding decisions and enable SMEs to access emergency government funding and working capital more quickly during coronavirus.
Businesses of all sizes face a cashflow crisis. More than a third of UK SMEs are expected to run out of cash by this weekend (Source: Market Finance) – with 20% of UK firms having less than one month of cash in reserve (Source: Credit Strategy).
The working capital sector is uniquely placed to help in this crisis, but faces considerable obstacles in doing so. Dancerace has sought to help financiers and SMEs cope with these challenges with their latest lending innovation, f3.
Having started developing an ‘onboarding’ app earlier this year, the team have worked round-the-clock to fast-forward the launch of their app from May 2020 to this week.
Dancerace are now offering the platform at a 95% discount for the duration of the coronavirus crisis, in support of SMEs and lenders.
Faster Funding
f3 is a secure portal for SMEs to apply for government funding and working capital products, via a four-step, 15-minute application process on a lender’s website.
Within the lender’s f3 portal, applicants choose what lending product they want to apply for and enter their contact details and company name. f3 verifies and imports additional company information from OpenCorporates. The system imports financial information from the applicant’s accounting system automatically using data extraction technology by Codat.
This company and financial information is then presented to the lender in a simple, secure dashboard. This includes the datapoints lenders typically use to offer a range of ABL products – including P&L, balance sheet, customer, supplier, invoice, contra, dilution, concentration, ageing and DSO information, based on up to seven years of the applicant’s accounting data.
Lenders manage each application via a CRM workflow and communicate with applicants via secure messaging.
Gathering and presenting data this way helps lenders make faster lending decisions by cutting the information-gathering stage from months to minutes. Dancerace believes this will enable lenders to fund more businesses more quickly.
Simple, Scalable, Secure
F3 can be used by any lender, not just Dancerace users. More importantly, the system can be configured to offer government funding and working capital products, or working capital products only. Many UK lenders are currently unable to offer CBILS funding because of the way the government scheme is structured.
The ‘government funding’ version of the app is currently compatible with the UK government’s CBILS (Coronavirus Business Interruption Scheme). Dancerace plan to release versions for government funding schemes in Australia, New Zealand and the United States shortly.
There is no implementation fee for the app and lenders will be charged a flat rate of £10 per enquiry via their f3 portal, for the duration of the coronavirus.
Implementation takes 48 hours and needs minimal configuration for the lender.
Early Adopters
Since launching the platform on Wednesday 8 April, Dancerace have secured interest from several UK banks and lenders. The team has confirmed launch of the first f3 portal next week, beginning Monday 13 April.
Dancerace CEO Elliot Avison believes his team’s new app is uniquely placed to help SMEs and the working capital sector:
“Businesses and lenders face their biggest challenge in a generation thanks to the turmoil caused by coronavirus.
“Governments have pledged record sums to help firms but lenders face serious obstacles to support businesses – not least a sharp increase in the number of lending applications they receive on a daily basis.
“Delays in processing these applications will stop funds reaching businesses until it’s too late. This will hurt all of us.
“f3 is our contribution to help reduce this friction and get more businesses funded, more quickly.”
