Defacto offers embedded credit products to small companies –

▤ Summary

Meet Defacto, a new French startup that wants to improve the credit infrastructure for small and medium companies. Defacto is an embedded finance product, meaning that it doesn’t distribute its credit offering directly to small companies. The fintech startup is already thinking about other potential partnerships with marketplaces for contractors, freelancers, logistics, freight and more. “We’re starting by lending from our balance sheet — that’s why we had to raise a first funding round in debt and equity,” Giuly said. Eventually, as the product gets better and as the company improves its risk scoring engine, Defacto expects to finance €100 million in transactions by the end of 2022.

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