The bank we offer the finance through run full credit checks and assess the risk. Non-payment is only tied to our lending bank, the tradesperson isn't at risk. If the customer is a risk of non-payment, the bank will elect not to lend to them. For the tradesperson, we'll let them know if the customer has been rejected for finance, and they can choose to proceed with the work and hope the customer can pay them if they choose, or decide the customer isn't worth the risk
> If the customer is a risk of non-payment, the bank will elect not to lend to them.
This seems a little glib. Everyone is a risk of non-payment. I have total confidence that over ten years of operation, there will be at least one occurrence of non-payment.
If you're actually providing 0% financing -- you pay the tradesperson $X up front and collect $X over the next 24 months -- that would mean you start out being able to employ zero people, and even the most infinitesimal risk of non-payment immediately puts you in the red.
There are other companies that you can sell invoices to to get cash instantly that will recoup the money from the client or sell the debt on to someone else (e.g marketfinance.com).
Pipe is doing a similar thing but their threshold is $100kARR