Debt management company Credit Intelligence (ASX: CI1) has become the latest financial service provider to enter the BNPL sector with the launch of YOZO Pay which has commenced lending to business owners, offering flexibility and transparency.

The launch of YOZO Pay is an extension of Credit Intelligence’s primary services where the profitable company’s operations have previously been focused on debt restructuring and insolvency management.

Using YOZO Pay however, SME owners are able to access credit facilities where the application and approval process is rapid thanks to an artificial intelligence engine that draws upon Credit Intelligence’s existing debt management infrastructure. Subsequently, SME owners can then choose from flexible repayment frequency options where costs are only incurred on facility drawdowns.

“We are excited to have commenced lending via the YOZO Pay BNPL service for SMEs,” said Credit Intelligence Executive Chairman, Jimmie Wong.

“This is a truly unique offering and is set to revolutionise lending for small and medium enterprise by providing a product which is not only aligned with the operations and cashflow of the business, but is also faster, cheaper and more transparent for the SME owner to use – allowing them more time to focus on the day-to-day running of their business.

“This SME BNPL service is totally different from other personal BNPL products being offered in Australia right now.”

Unlike traditional financing facilities like those offered by major banks, the YOZO Pay BNPL service enables same day loan approval and zero collateral with clients only paying for what they use.

While lending has already commenced, the AI engine that powers YOZO Pay’s lending decisions is continually being developed in collaboration with the University of Sydney with a core focus towards saving time and money for its users. In time, this will include 24/7 loan approvals where SME owners often cannot step away from their responsibilities during standard business hours to wait in queues, stay on hold or attend meetings at banks.

This extension into the lending space is also tipped to create large opportunities for Credit Intelligence’s debt recovery services which have long been a profitable division within the Company, further strengthened by the rise in consumer BNPL trends brought forth by industry leaders Afterpay (ASX: APT) and Zip Co (ASX: Z1P).

CI1 shares responded exceptionally well to news of YOZO Pay’s first BNPL loans to open at $0.11 which represented a 46% increase on their previous $0.075 close.