AI-powered SMB credit advisor startup Charm Solutions has successfully raised $3.5 million in a seed funding round led by BootstrapLabs.
Charm’s SMB credit advisor service leverages self-learning AI to assist institutional lenders in transforming data into valuable insights that enhance profitability and empower SMBs to make informed business decisions.
Many lenders continue to rely on outdated manual processes, such as emails, PDFs, and spreadsheets, to gather borrower information, which can take over a week to compile. Additionally, many financial institutions still depend on traditional credit scores for underwriting, overlooking the extensive business data readily available.
Over the past decade, Charm has developed AI underwriting models and benchmarking insights, along with its proprietary SMB Score technology. This platform is currently utilized by lending institutions to expedite loan decisions, reduce processing times, and identify loans in their portfolio that require review amidst ongoing economic fluctuations.
Recently, Charm Solutions partnered with Abrigo, a company that provides technology for compliance, credit risk, lending, and asset/liability management. This collaboration will allow lending institutions to access Charm Solutions through their SageWorks platform.
Nicolai Wadstrom, CEO of BootstrapLabs, comments on the partnership, stating, “Charm brings a wealth of knowledge in machine learning, data science, and business & consumer lending technologies. They are well-positioned to empower small and medium-sized business owners to operate their businesses more efficiently, much like how Credit Karma has assisted consumers in improving their credit scores and reducing lending costs.”