In October 2020, Flowcast (San Francisco, California, USA), a fintech company founded in 2015, launched a new service called "Tillful" to calculate the credit score of small and medium-sized businesses. It connects to a company's bank account and accounting software via API. Artificial intelligence calculates a company's creditworthiness on a daily basis, based on factors such as rent, corporate credit card payment history, and fluctuations in account balances. The service is free of charge for small and medium-sized businesses, but banks are charged a fee when they refer to the information analyzed by Tillful for loans.
In the U.S., online lenders OnDeck and Kabbage, and in Japan, accounting software companies Free and Yayoi, among many others, offer similar services to assess a company's creditworthiness. But “the number of financial institutions using Tillful has doubled every month since its launch," said Ken So, CEO of the company. The companies using Tillful range is broad, from e-commerce, retail stores, medical institutions, and restaurants.
The reason for its popularity seems to be that it is not limited to payment history, but also includes qualitative information such as "state government rent deferment measures" in its analysis. If the state government makes a "special exception," the credit score will not be affected even if you fail to pay your rent on time. This is a unique service born out of the pandemic. Mr. So said "This will help small and medium-sized companies get funds and rebuild their business.”