Lending with Codat
An overview of the lending use case supported by Codat
During lending, the lender evaluates a borrower's financial history, income, assets, and debts to determine the financial risk the borrower poses to the lender. The goal, in the end, is to provide loans and insurance products for SMBs based on the outcome of that assessment.
How Codat can help
We can support traditional banks, neobanks, and digital lenders in their lending activity by leveraging our Assess and Accounting, Commerce, and Banking API products.
Relevant products
Accounting API
Banking API
Commerce API
Assess
Accounting, Banking, and Commerce APIs
We have done the heavy lifting for you by building integrations with a standardized data model to the accounting, commerce, and banking platforms your customers already use. This gives you access to real-time data that you can pull, create, or update to support your use case.
For example, if you need a customer's invoices as part of your assessment, our integrations allow you to pull and monitor invoices and the associated customers.This can even include line-item breakdowns and a PDF copy of the invoice where available. This approach removes the manual effort required to upload and extract the data, saving you time and effort, and providing your customer with a better digital experience.
You can do this for any data types we support, and even automatically synchronize them on a schedule.
Codat can also support an automatic reconciliation process, helping your customer to reduce the time and effort of manual processing, and increasing accuracy. For example, you can push a payment to their accounting platform and reconcile it against the invoice, marking it as paid.
Assess
Assess uses ML-powered categorization on top of the latest accounting, commerce, and banking data, standardizing the data irrespective of its source. It also provides pre-calculated financial metrics and reports based on contextual, real-time data, helping you make more informed risk assessments.
You can also use this data to produce additional insights (e.g. calculate financial ratios) and automate decisioning based on these insights, all via one API.
Use case guides
We're working on guides so you can see how to build a simple application with Codat:
Follow the demo guide to perform the end-to-end loan qualification process, from submitting a loan application to assessing a borrower's financial health using custom metrics, to issuing an automatic final decision on the application.
Invoice financing allows the SMB to raise capital using unpaid invoices as security for the funding. It gives the business access to a percentage of the invoice value quickly and helps improve its cash flow.
Read next
Review the full range of use cases Codat can support you with and find one that suits you best.