Lending fintech Quasar Flash raises US$4.5M to accelerate credit analysis for Brazilian SMEs

Contxto – In an ideal world, accounts receivable departments always have a steady cash flow because customers pay for everything immediately. But most businesses know all too well that that’s rarely the case (if ever).

In general, large companies are bulky enough to withstand these irregularities, while small and medium-sized enterprises (SMEs) can struggle. Startup Quasar Flash is quite familiar with this dilemma and wants to help more SMEs in Brazil make ends meet.

To that end, the lending fintech recently closed R$25 million (~US$4.5 million) in a Series A round led by Valor Capital Group.

Because time is literally money in this line of business, Quasar Flash will use the funds to speed up its platform’s credit risk analysis capabilities.

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Quasar Flash wants to lend in a flash

With its focus on SMEs and microentrepreneurs in Brazil, Quasar Flash offers financing solutions for receivables. Correspondingly, it’s developed software that evaluates a company’s balance sheet. It also pulls data from other sources like credit bureaus to determine eligibility and the amount to be granted.

To top it all off, it uses artificial intelligence for data analysis so as to make a credit line proposal, reportedly within seconds. Moreover the entire operation is digitized: from document submissions, to the credit line offer, and signing of contract between parties. 

“We want to revolutionize the factoring business in Brazil which is still very regionalized. We seek to achieve a large scale through technology,” says Carlos Maggioli, CEO and Founder at Quasar Flash.

In the future, the startup hopes to launch more products for SMEs including a corporate credit card and payroll loans.

Giving AR a break in Brazil

2018 was a crucial year for accounts receivable departments in Brazil. At the time, the country’s Central Bank enabled the registration of receivables for financing. The goal was to improve the chances of small businesses accessing credit through third parties like Quasar Flash.

Meanwhile, lenders were encouraged to partake in these financing ventures because the registration system hosts quality controls to prevent fraudulent schemes.

This also helps explain the growth of startups working to finance AR departments throughout Brazil such as Liber Capital, Adianta, and Rapidoo.

Related articles: Tech and startups from Brazil!

-ML