Codat, the universal API for small business data, announced its partnership with Moody’s Analytics. Moody’s Analytics is a global provider of analytic tools and risk assessment capabilities. The Codat API is being integrated into Moody's Analytics' CreditLensTM solution, enabling financial service providers that use Moody's Analytics' solution to connect with a variety of accounting platform providers, significantly enhancing underwriting efficiency for small company loans. This partnership's long-term goal is to increase credit availability for millions of small business owners globally.
Half of the small and medium-sized businesses (SMEs) in the United States report that obtaining a business loan is difficult or takes an unreasonable amount of time. While small firms frequently seek small-dollar loans, they usually have greater underwriting fees, making them more challenging for banks to lend economically. Automation enables even the tiniest SMEs to operate efficiently and economically.
"Moody's Analytics has impressive global scale and reach, so this partnership holds the potential to meaningfully reverse the credit crunch facing SMEs while opening up new profitable lines of business for financial institutions. Together, we will be able to extend the benefits of Codat's two-way flow of financial data to more lenders and financial institutions, allowing them easier access to a wider data set to make high-quality, data-driven credit decisions."
Peter Lord, CEO & Co-Founder of Codat
In addition, CreditLens offers industry-leading data and analytics. It standardizes credit data collection, analysis, and storage, paving the way for robust credit origination. Codat will improve the CreditLens decision framework by automating the dissemination of real-time accounting data. It will also use its capacity to automatically map accounting data from any small firm to a standard chart of accounts.
Eric Grandeo, Product Head of Moody’s Analytics Lending Solutions elaborated, "We are excited to welcome Codat as a new accounting data aggregation technology partner to boost the value of Moody's Analytics lending solutions. Codat provides a seamless interchange of real-time data to enable valuable credit insights and predictive capabilities. The partnership will afford small businesses across the U.K and U.S. access to more credit options, opportunity and growth."