Being your own boss has its perks, but when it comes to proving your creditworthiness, it’s not so clear cut and can be a major source of dread for sole traders. That is why an app called ‘Covid Credit’ was developed by a consortium of fintech companies earlier this year for sole traders to self-certify for government support.
At the onset of the UK COVID pandemic, the entrepreneurs quickly built a service that aggregates data from an individual’s banking accounts to generate a validated income statement to use as proof of income when applying for credit or in other cases- loss of income – when applying for government support.
It uses an open banking API from Credit Kudos, a UK-based fintech company. In addition to Credit Kudos other companies involved include Dinghy, a digital insurance platform for freelancers, backed by Allianz, which earlier this year offered two months of free professional indemnity insurance to protect freelancers from legal claims, and two months of its “Freelancer Assist” insurance to help them collect unpaid invoices over £250.
To learn more about Credit Kudos income verification for your business click here.