AI-Enabled SME Lending Platform (Baltics Focus)Equity Raise

AI-Enabled SME Lending Platform (Baltics Focus)

Equity Raise: €1M | Debt Facility: €2M

Investment Opportunity

A fast-growing European fintech platform is scaling an AI-driven SME lending solution focused on the Baltic region, delivering instant, data-based credit decisions using real-time bank account data and automated underwriting.

The company provides short-term working capital loans to underserved SMEs and is currently raising €1 million in equity together with €2 million in debt financing to expand lending capacity, automate operations, and accelerate regional rollout.

Market Opportunity – Baltics and EU/UK - 12 k banks connected

• EU and UK SMEs face funding gaps due to slow bank approvals and collateral requirements

• Traditional approvals typically take 1–4 weeks, leaving many businesses underfunded

• Strong demand exists for fast digital working capital financing

The platform targets SMEs with recurring revenues and active bank accounts across:

• Latvia (current core market)

• Planned expansion across Lithuania and Estonia

• Future rollout to Northern and Western Europe

Target sectors include e-commerce, retail, hospitality, services, education, and consumer-facing businesses.

Product & Lending Model

Businesses can:

1. Connect bank accounts via Open Banking

2. Receive AI-powered automated credit assessment

3. Obtain funding within minutes or hours

4. Repay through flexible revenue-linked installments

Loans are typically short-term working capital facilities priced up to ~35% annualized interest (APR) depending on borrower profile, structure, and duration.

This pricing reflects:

• unsecured SME lending risk profile

• instant underwriting and fast disbursement

• short duration with rapid capital turnover

Technology & Risk Management

• Real-time AI/ML cash-flow underwriting

• Predictive models for default, repeat borrowing, and loss forecasting

• Continuous borrower monitoring for financial risk signals

• Personal guarantees required for each loan

These capabilities support scalable lending with disciplined portfolio risk control.

Traction & Financial Snapshot

• €500K active loan portfolio

• 30 SME borrowers funded

• €65K revenue generated

• ~2.39% gross default rate

• Early investor backing secured

The company has already raised:

• €275K equity investment

• €120K debt financing

Business Model

Revenue streams include:

• loan origination fees (~10% per loan cycle)

• borrower interest income (up to ~35% APR)

• fast loan turnover (typically ~6 months)

Customer acquisition metrics demonstrate efficient scaling:

• CAC ~€199

• CAC ≈1.19% of loan value

• Payback period approximately one month

Funding & Use of Proceeds

Equity: €1M

• Automation and scoring technology

• Team and operational scaling

• Market expansion preparation

Debt: €2M

• Direct deployment into Baltic SME loan portfolio

• Increased lending volume and revenue generation

Growth Outlook

Near-term milestones:

• >70% automated loan decisions

• €2M+ loans issued before next round

• Additional Baltic expansion and partner integrations

The company targets rapid portfolio scaling followed by entry into broader European markets.