Byzfunder launches AI underwriting platform for small-business financing

Byzfunder launched TraceDataIQ, a proprietary AI underwriting platform that the small-business financier says draws on performance history from more than $2 billion in financing to more than 35,000 businesses, according to its Sept. 17 company announcement.

The software operates inside ByzOS, Byzfunder’s origination and portfolio-management platform. Its assessments support credit approval, financing amounts, deal structure, pricing, fraud detection and expected recoveries.

Founder and CEO Ilya Fridman said the objective is faster, more consistent and more accurate credit decisions.

Rather than simply extracting figures from bank statements, the system is designed to evaluate cash-flow quality, revenue volatility, payment performance and signs of financial stress. It also screens court and public records and examines business websites, profiles and social media to help validate a company’s identity and operations. Those inputs feed a single risk assessment that Byzfunder describes as explainable.

The work extends beyond the initial application. Byzfunder says TraceDataIQ can reassess a business as new information becomes available, identifying changes in revenue, financial obligations, lender positions, banking relationships, payment performance and legal exposure.