'Artificial Intelligence expands lending opportunities for small businesses, as discussed by the head of Juice'
In the fast-paced world of fintech, one startup is making waves by providing funding to some of the UK's smallest businesses. Juice, a fintech startup founded in 2019, is revolutionising small business lending with its data-driven, AI-powered approach.
Katherine Chan, the chief executive of Juice, comes from a corporate banking background. She believes that if big banks and smaller lenders worked together, they could make a difference in how businesses borrow money. Chan states that Juice fills a gap where banks are not providing funding to small businesses.
Juice operates in a competitive market with companies like Iwoca and OakNorth. However, its unique approach sets it apart. Juice uses various data sources, including card terminal data, marketing data from Meta and Google, cloud accounting, and open banking, to create a comprehensive view of a business. This data is then analysed using artificial intelligence to assess loan applications.
One such business that has benefited from Juice's funding is Grain and Frame, a furniture importer. They have used Juice's credit facility to fund production before making sales during their peak season. This funding has helped Grain and Frame to scale up their business and save on costs.
The funding offered by Juice can be a revolving credit facility, allowing businesses to take what they need and repay as needed. This flexibility is a significant advantage for small businesses, especially during lean months when funds may be tight. During these times, businesses can feel comfortable with the knowledge that their loan can lay dormant and they only need to pay for what they use.
In 2024, just 7% of small businesses sourced funding through a business loan, according to Zempler. This statistic highlights the need for alternative lending options like Juice. In the same year, 43% of small business applications were declined funding, according to SME Finance Monitor. Juice, with its AI-enhanced credit underwriting, can offer loans within 24 hours, whereas banks could take several months.
Juice has lent millions to UK businesses since its launch. It provides funds that small businesses need to start up, run, and grow. With its agile digital infrastructure, advanced data analytics, and flexible risk appetite, Juice is filling a vital gap in the market and helping small businesses thrive.
- Katherine Chan, the chief executive of Juice, who comes from a corporate banking background, suggests that by collaborating, big banks and smaller lenders could revolutionize the way businesses borrow money.
- Juice capitalizes on technology by utilizing various data sources, such as card terminal data, marketing data from Meta and Google, cloud accounting, and open banking, to assess loan applications for businesses using AI.
- As fintech startups like Juice emerge, they not only provide an alternative funding option for small businesses, but they also offer faster approval times (within 24 hours) compared to traditional banks, which could take several months for a decision.
