Finom issues first credit line
European financial services platform Finom has issued its first credit line to a small business in the Netherlands, marking the company’s first foray into direct lending.
The allocation is part of the Dutch company’s pilot on-demand funding program for small and medium-sized businesses.
Read more: Macquarie launches European direct lending platform
“We’re addressing a critical gap in financing for entrepreneurs and freelancers while maintaining full control over the customer experience and credit quality,” said Finom’s chief executive Andrew Petrov.
“Entry into lending represents a significant step in our path to build a comprehensive financial ecosystem for European businesses.”
Read more: Navigating Europe’s alternative credit market
Finom uses a proprietary scoring engine to enable automated credit decisions quickly. The company aims to address a funding gap in the Dutch market, where small businesses and freelancers contribute 61 per cent of gross value added to the economy but face significant barriers to accessing credit.
The initial pilot will be available to select existing Finom customers who have been with the platform for at least three months. The company plans to expand across key served markets and to new customers in subsequent phases by the end of 2025.
The initiative is led by Finom Growth, the company’s dedicated credit solutions division.
Read more: Private credit market set for significant growth in 2025
