Defacto leverages different sources of data to feed the underwriting algorithm to define the limit of the line of credit.
In general, there are 4 levels of data Defacto leverages:
Public data based on company registration number or VAT number
Historical data available on the partner's platform
Additional financial data and business KPIs provided by the borrower or via AISP
Peripheral data for example, social media presence, sales pipelines, etc.
We first verify the legal existence and the public data of the company, to give an initial credit line.
The credit line amount is zero if the borrower is not eligible for our credit products.
Generally, the more data we have access to, the better we will be able to offer the borrower a credit line matching their needs.