Treyd provides cutting-edge inventory financing for small and medium-sized businesses. Through Monto, the hot fintech company is able to enhance its understanding of each customer in Sweden, based on a reliable feed of real-time financial data.

Key benefits of Monto:

• Unified access to real-time ERP data through one API
• Business insights on SMEs – unlocking new growth opportunities
• Improved monitoring and closer customer relationships

Following tests in 2022, Treyd knew it had found a low-maintenance solution that suited its business. Through Monto, the company gets seamless access to enriched financial information from leading accounting software in Sweden.

“Having high quality data is key for making our credit model more accurate, and for having a good system in place to monitor our portfolio and follow up on the performance of our clients,” says Sameh El-Ansary, Co-founder and CTO at Treyd.

Real-time data – a must-have for modern lenders like Treyd

Treyd’s ‘capital on demand’ solution addresses one of the big growth bottlenecks that trade companies face: major gaps between factory and customer payment terms. Treyd essentially pays supplier invoices up front on behalf of customers, who are granted a dynamic credit line and four months repayment time.

In credit decisioning, the fintech naturally puts a lot of weight on the current financial health and growth trajectory of a business.

By having up-to-date income statements and balance sheets, as well as synced information on invoicing through Monto’s API, Treyd can better understand the performance of prospective and existing customers.

“A real-time information flow between lender and borrower definitely improves things and fosters a long-term relationship. Our customer grows faster with growth financing, and that financing is on demand from a player like Treyd.”

True value of data sharing? Closer customer relationships

Treyd and Monto share a vision of enabling small businesses to gain access to fair and transparent financing. Monto’s CEO, Leonard Schreij, says: “We developed our platform in order to enable innovative lenders like Treyd to reach their full potential, in terms of credit assessments. Equipped with the best and latest insight available, lenders are better able to make informed decisions.”

Monto’s API-based solution makes both data sharing and collection automated and systematic. The main benefit, El-Ansary notes, is that the credit team gains a deeper understanding of each business, which creates trust.

“Building long-term relationships with a client depends on understanding their business. Now, we can discuss things way more in depth [with clients that share their real-time data], in contrast to having only financials that are updated  every six months or so. In [the latter case], the client relationship becomes more distant.”

Credit monitoring is a way to help customers thrive

Treyd recently secured extensive credit facilities to fuel its already-impressive growth, primarily in the Nordics and the UK. Its typical customers are micro, small or medium-sized (often online-based) businesses that sell everything from electronics and food produce to clothing.

Insights gained from ERP data is a crucial asset not just in initial credit assessments – it’s also useful in following up on customer performance over time. Related to this, El-Ansary highlights that credit monitoring is about much more than managing downside risk.

It’s equally about identifying valuable upsell opportunities.

A continuous feed of real-time data allows Treyd to proactively identify new opportunities in the portfolio to provide additional credit. “This way we can give our customers exactly what they need, based on their growth trajectory. They get more predictability [into their cash flow] as well.”

Say hi to Reliability Indicator

A more recently launched feature of Monto’s platform is Reliability Indicator, which has become a key addition to Treyd’s credit risk assessments in Sweden. The reason is straightforward. Quality accounting data requires consistent bookkeeping  – and some businesses lag or make mistakes with their entries.

“There is always a human being on the other side, inputting all the information into accounting systems. That information may not always be up-to-date,” says El-Ansary.

With Reliability Indicator, viewed through Monto’s visual interface, Treyd can understand which periods have more reliable information than others.

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Other benefits of Monto, according to Treyd:

Seamless onboarding: As soon as a company onboards and creates an account with Treyd, they will go through a flow of sharing various types of financial information – including an integration to accounting software. Through Monto’s pre-built authorization flow, this process becomes seamless (in Sweden).

Data Model: Treyd appreciates Monto’s data model, meaning all data is categorised so it can easily be plugged into credit processes. “Solid data categorisation is extremely important, and Monto delivers that better than any other player on the market. We do not want to commit our in-house resources on categorisation, we want to put it on something else,” says Sameh El-Ansary.

Monto App: A visual interface that provides all the API information in one dashboard provides a quick overview of connected companies. Reliability Indicator allows Treyd to stay on track with the reliability of data.

Continuous data sharing (with consent): Setting up data sharing enables Treyd to understand the financial health of clients – even those that haven’t initially qualified for credit. “We may be able to reassess the situation maybe in six months’ time and provide them a limit,” says El-Ansary. She refers to newly founded companies that apply for financing but don’t have a lengthy track record.

.. interested in getting started with Monto? Get in touch with us here, or drop us a line at hello@monto.ai