Small and medium-sized enterprises (SMEs) are the backbone of the global economy, driving innovation and creating jobs. However, these businesses often face challenges when it comes to accessing finance. Traditional lending institutions may be hesitant to provide loans to SMEs, especially those with limited credit history or collateral. This is where alternative funding options come in. But how can SMEs find and access these options? The answer lies in free data insights tools, like Pulse, that make use of Open Banking and Open Accounting. 

What is Pulse? 

Pulse is a free data-insights tool that uses AI and machine learning to provide real-time insights and analysis. Once a business has connected their banking and accounting software to Pulse, they receive x-ray vision of their business finances. These reports can highlight strengths, weaknesses, opportunities and threats based on their Open Banking and Open Accounting data. What’s more, our interactive dashboard can help SMEs monitor their cash flow, profitability, liquidity and solvency. 

Improved credit acceptance rates and tailored loan products 

Let’s face it, traditional methods of assessing the creditworthiness of an SME can be limiting. Lenders often rely on credit scores and financial statements to determine whether a business is eligible for a loan. However, these methods only provide a snapshot of the SME’s financial situation at a specific point in time, which can be insufficient. 

Thankfully, Pulse is here to change the game. By sharing your current account and cloud accounting data with lenders through Pulse, you can improve your credit acceptance rates and gain access to more tailored loan products from Nucleus. 

But how does Pulse do this? By giving Nucleus regular access to your financial data, we can see the big picture of your financial situation, covering your cash flow, revenue and expenses. This makes it easier for Nucleus to know how your business is performing financially and show your data in a way that lenders appreciate. And ultimately, that means you have a better shot at getting the funding you need. 

Let’s say you run a business selling ice cream. During the winter months, your revenue may dip due to the seasonal nature of your business. However, by sharing your financial data through Pulse, Nucleus can see the impact of these fluctuations on your cash flow and assess whether you are still a viable candidate for a loan. This means that even if your financial statements show a dip in revenue during a particular season, you may still be able to access funding from Nucleus with the help of Pulse. 

To sum it up, Pulse shows lenders the full and true story of your finances, which can help you get funding that might have been impossible with old-fashioned methods. 

Regular updates of transactions 

Gone are the days when SMEs had to go through the tedious and error-prone process of manually gathering and sharing accounting information with lenders. It’s the 21st century, and with the help of Pulse, lending has changed for the better! 

Pulse integrates with various accounting platforms to automatically gather scrambled and display that data back to them in a way they can fully understand. This means SMEs can easily identify trends, patterns and anomalies in their data, get alerts for potential issues and access personalised recommendations based on their goals. 

Let’s say an SME wants to make a big decision for their business. Normally, they’d have to dig through piles of accounting data like tax returns and bank statements. But with Pulse, all they need to do is connect their accounting software to the platform. And as if by magic, Pulse transforms their data into easy-to-understand insights and reports, making the decision process much faster, smarter, and far more efficient overall. 

Regularly updated accounting data is of paramount importance for lenders like Nucleus, a leading fintech company. With access to real-time financial insights through Pulse, Nucleus can make better-informed credit decisions, benefiting both the SME seeking funding and the lender itself. 

Acquire actionable insights with data 

Pulse can be a game-changer for SMEs who want to better understand their financial data and make more informed business decisions. By integrating with different accounting platforms, the platform can provide SMEs with real-time access to their financial data, which can help them identify growth opportunities, funding needs, and potential risks. 

By using Pulse, you can acquire regular updates of cash flow trends and customer payment behaviour, allowing you to plan your finances more accurately and avoid cash flow shortages. You can also use the platform to spot bad debt risks, giving you the ability safeguard your business from avoidable losses. 

Empowering accountants 

If you run an SME and decide you want to delegate financial decisions to an accountant, Pulse can equip them with the info they need to provide personalised strategic recommendations based on your business’ financial data. By analysing cash flow trends, repayment behaviour and more, our platform can help accountants to advise businesses on how to manage their cash flow ahead of significant changes in operations. This is particularly useful for a business planning to gauge whether it has the capacity to enter a new market or start a new venture. 

And that’s not all – Pulse provides accountants with a comprehensive view of their client’s financial health. Using the same metrics outlined above, accountants can use this information to make informed decisions on how a client should approach lending and advise them on the best loan products for them. With Pulse, your accountant can provide you with the insights you need to raise capital and achieve their goals. 

Connecting data with open platforms can even help SMEs exploit the power of open data for commercial exploitation and innovation. Pulse can also help SMEs manage their finances more effectively by providing insights into cash flow trends, growth opportunities, and potential risks. This can help you make more informed business decisions and take advantage of new opportunities as they arise. 

With the use of AI and machine learning, Pulse can analyse the accounting data of SMEs and provide them with actionable insights, such as growth opportunities, cash flow needs, repayment behaviour and risk alerts. Try Pulse for free today!