Customer: Capitalise

Removing the Hurdles: How Capitalise & Plaid are Reshaping SME Funding

For many small and medium-sized enterprises (SMEs) in the UK, accessing the necessary funding for growth can be a daunting journey. Traditional lending processes often involve lengthy applications and mountains of paperwork, consuming valuable time that business owners simply don't have. 

Approximately one in six have recently been rejected for business loans; 19% due to limited time available to complete lengthy loan applications. This reality inspired Capitalise to seek a simpler, more efficient way to connect SMEs with the capital they need.

For many small and medium-sized enterprises (SMEs) in the UK, accessing the necessary funding for growth can be a daunting journey. Traditional lending processes often involve lengthy applications and mountains of paperwork, consuming valuable time that business owners simply don't have. 

Capitalise: Simplifying Business Funding for UK SMEs

Capitalise is a financial platform that helps UK SMEs understand and control their business finances by providing business credit score insights and simplifying access to funding. By integrating Plaid’s open banking technology into its Instant Offers framework, Capitalise connects over 150,000 SMEs with funding, eliminating delays and manual processes.

The Bottleneck: Manual Processes and Delays

Before Plaid, manual uploads and lengthy reviews slowed applications, frustrating SMEs and lenders alike. This friction impacted application completion rates and, ultimately, the ability of SMEs to secure essential funding.

"The feedback from customers was consistently that traditional funding applications were taking too long," explains Ollie Maitland, Co-Founder at Capitalise. "We knew there must be a better way, a way which didn't waste the business owners' precious time."

Faster Funding Decisions

Quick access to capital is crucial for SMEs. Capitalise’s lending marketplace, powered by Plaid, connects businesses to over 100 lenders, including 10 open finance lenders. With Plaid’s secure bank connectivity, SMEs can receive pre-approved offers instantly, avoiding manual bank statement uploads and reducing errors.

Plaid’s real-time financial data enhances credit decisioning, reducing lender admin and increasing approval rates. This means SMEs receive tailored funding offers faster and more efficiently.

“Cash flow is one of the biggest challenges for UK businesses. By integrating Plaid’s technology, Capitalise is making financing faster, simpler, and more accessible for SMEs, ensuring they have the resources they need to thrive.” — Zak Lambert, Europe Product Lead at Plaid.

Recognising open banking’s potential, Capitalise integrated Plaid’s secure data connectivity to automate financial data sharing, eliminating manual steps.

How It Works

• Direct Bank Connection: Businesses securely link their accounts, granting lenders real-time financial data access.

• Automated Data Flow: Lenders receive instant insights, accelerating underwriting decisions.

• Security First: Capitalise and Plaid ensure data is handled securely.

"Our goal was to create a funding process that was both efficient and secure," says Ollie Maitland, Co-Founder at Capitalise. "Plaid's technology allowed us to achieve that, providing a seamless experience for our customers."

The Impact: Real Improvements for SMEs

Integrating Plaid has led to significant improvements in the funding experience for SMEs:

• +48% Increase in Application Completion: More businesses are successfully completing their applications and moving forward with the funding process.

• +180% Increase in Pre-Approval Offers: Capitalise’s pre-approval journey, powered by Plaid, is delivering a 180% increase in offers compared to the general marketplace.

Meeting the Needs of SMEs in a Competitive Landscape

With challenger banks and alternative lenders now covering 60% of SME lending, businesses have more options but also more complexity. Open banking simplifies this by providing real-time financial data for faster approvals.

“Plaid’s technology is a natural fit for enhancing our Instant Offers framework, ensuring our customers benefit from quicker, easier funding journeys.” — Ollie Maitland, Co-Founder at Capitalise.

Plaid’s collaboration with Capitalise underscores a commitment to driving innovation in SME financing and empowering businesses with the tools they need to succeed. For SMEs, the future is clear: faster, smarter funding solutions are here to stay.

Want to learn more about how Plaid’s open banking capabilities can enhance your customer experience get in touch today.