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Q&A with The Smarter Merchant

The Smarter Merchant was founded in 2013. With nearly a decade of operations, The Smarter Merchant endured a pandemic as well as current conditions of unprecedented rising rates. What has allowed The Smarter Merchant to still perform during punitive macro conditions?

We watch for emerging trends on Wall Street, which typically translate to Main Street a few months later. Another factor that allowed us to stay ahead is consulting with adjacent companies to gauge their recent successes and pain points. The combination of those two things, along with our real time data, allow us to make adjustments to our underwriting guidelines — thus staying ahead of the curve.

What unique approaches does The Smarter Merchant take when onboarding new merchants, and how have these tactics evolved over time?

Our process is built on traditional lending fundamentals and a deep understanding of what it is we offer. A lot of our competitors seem to have lost themselves along the way in that regard. Our approach has evolved with the introduction of new data sources and new insights

How does The Smarter Merchant leverage technology when performing risk analysis on clients?

By using real-time performance analytics, along with numerous integrations from data providers, we are able to adjust our scoring models in real time. We have also created an industry-leading KYC module, which has been a great deterrent for potential fraud.

How does Percent differ from other debt providers The Smarter Merchant has worked with?

With Percent, we get real-time feedback and an understanding of what the retail investors are feeling. This is quite valuable to us. Other debt providers typically can’t or won’t share that info with us. We quite like the structuring of their notes, as it gives us the flexibility to grow relatively quickly when we see opportunity.

How has The Smarter Merchant benefited from working with Percent?

Since inception, the team up at Percent has had their finger on the pulse of our business. They have been one step ahead when it comes to understanding our short term goals. The flexibility of Percent’s platform and note program also make Percent a key partner to have at such an important point in our business.

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