borrowers

European fintechs Qonto and October revolutionize small business lending

Qonto, the European finance management solution that simplifies everyday banking, accounting and expense management for more than 150,000 businesses, and October, the SMEs lending platform leader in continental Europe, have joined forces with a common goal: to simplify credit access for small businesses and the self-employed.

 

 

Qonto and October revolutionize small business lending

© Photo Ahmad Baryali – Alexandre Prot and Olivier Goy 

 

This partnership gives Qonto customers access to simple, ultra-fast, 100% online financing with no personal guarantees, directly through their app. They can receive an instant decision on their loan application based solely on their Qonto account transactions, without having to upload financial statements or other documents. The funds then would arrive on their account just 4 days later. This feature, which is a first for European fintechs, bolsters Qonto’s offer and extends October’s instant decisioning technology to small businesses and the self-employed in Europe. These loans, available in France since April, will be opened to Italian companies in May and then extended to other European countries where Qonto & October are both active, like Spain for example.

An Instant Loan offer for small businesses and the self-employed

Qonto and October, European fintech flagships and members of the French Next40 ranking, are now offering two types of loans to VSEs and SMEs: a classic loan and a state guaranteed loan (SGL). Qonto customers will be able to borrow up to €30,000 over 24 months for the classic loans and the same amount over 60 months for the SGLs. This is the first time that the SGL are directly distributed to VSEs without going through a traditional bank.

Only a few days after the launch, more than 10 SMEs have already been approved for approximately €500,000 of funding. These can be added to the €550 million that October has already lent to more than 1,300 businesses since its creation.

 

“For the first time, our customers who want to benefit from a loan, including an SGL, have the possibility to access a quick and easy credit solution to finance their project. They can finally centralize everything from their Qonto account, taking advantage of October’s expertise. This new offer marks a turning point for Qonto, which has added to its range of financial management and accounting solutions a safe and efficient way to finance small businesses and the self-employed,” says Alexandre Prot, CEO & Co-founder of Qonto.

 

“The integration of October’s technology into Qonto is a precursor to what business credit will be like for everyone in the future. A simple and fast experience for borrowers that, in a few clicks, gives access to reliable data to make a credit decision. The first loans granted in this way are the result of 6 years of R&D. We wanted to simplify credit access to entrepreneurs: here we are!” says Olivier Goy, CEO of October

 

A brand new credit experience 

The loan application takes 10 minutes and its automatic analysis provides the user with a smooth experience. The connection between the two fintechs (via API) allows the customer to submit its application in seconds and with just a few clicks. After answering less than 5 questions, the customer receives an instant offer generated by an innovative scoring model based on bank transaction analysis and automated fraud detection. The funds are then made available in the borrower’s Qonto account within 4 days, thanks to the contribution of October’s community of lenders; of which there are now 25,000 today. 

Proven effectiveness…

Pierre-Antoine Errard, founder of Solarian (web development), obtained a state-guaranteed loan of 22,500€ to recover his cash flow and anticipate future expenses.

In 2020, Pierre-Antoine faces the Covid-19 crisis and sees significant traffic drops in his websites .

Anticipating important cash flow needs, he applies for a state-guaranteed loan directly through his Qonto account.

 

“Applying for a loan with October and Qonto was extremely quick and easy. In a click, my informations were sent to October and they made me an offer immediately. What i really liked was the transparency throughout the process. I had visibility every step of the way, including dates and deadlines, which made me feel very confident.

 

A few clicks, 5 questions and an instant analysis of his banking transactions later : he gets a firm offer in just a few minutes.

“I received the funds in my account 4 days after the request.”  Even before getting an appointment with the traditional bank…

 

 

More on : borrowers’ stories

 

 

For more information: https://qonto.com/en/financing/