Unlocking Sustainable Finance for SMBs: Zero Circle's AI Solution

Unlocking Sustainable Finance for SMBs: Zero Circle's AI Solution

Table of Contents

1. Introduction
2. The Challenges with Sustainable Finance
3. The Role of Zero Circle in Sustainable Finance
4. Unlocking Sustainable Finance for Small and Mid-sized Businesses
   • The Gap in the Middle
   • The Complexity of the Process
   • The Lack of Standardization
5. The AI-Based Solution of Zero Circle
   • Qualification of Organizations for Green Finance
   • Monitoring Ongoing Sustainability
   • Driving Impact Performance
   • Scoring Model for Lenders
6. Focus on Logistics and Construction Industries
7. Pricing Model and Market Potential
8. Traction and Partnerships
9. The Team Behind Zero Circle
10. Funding and Future Plans

Unlocking Sustainable Finance for Small and Mid-sized Businesses: The Zero Circle Approach

In today's world, sustainability is no longer just a buzzword; it has become a necessity for the survival of our planet. From climate change to resource depletion, the need for sustainable development is evident. However, one key aspect that often hinders progress in this area is the lack of funding. While there is a significant amount of money available in the financial industry, most of it is not directed towards green finance initiatives. This is where Zero Circle comes in.

Zero Circle is a startup on a mission to unlock sustainable finance within the B2B ecosystem. The company recognizes the gap that exists between large-Scale green finance projects and microfinance initiatives. They aim to bridge this gap by providing small and mid-sized businesses with a way to tap into the green finance ecosystem. The ultimate goal is to convert the $60 trillion of assets under management into comparable green loans and green assets.

However, achieving this goal is not without its challenges. The process of accessing green finance is complex, expensive, and lacks a standardized approach. This is where Zero Circle's AI-based solution comes into play. Through their proprietary AI model, they are able to assess and qualify organizations for green finance quickly. This allows small and mid-sized businesses to access financing aligned with various loan programs and bank criteria, while also ensuring ongoing sustainability through monitoring and meeting loan covenants.

Zero Circle has created a scoring model that drives impact performance based on lenders' scorecard criteria. This scoring model enables banks to configure their own priorities and criteria for sustainable lending. With different lenders having different requirements, Zero Circle's platform provides a way for businesses to find the best match for their financing needs.

Currently, Zero Circle is primarily focused on the logistics and construction industries, catering to loans ranging from $50,000 to $10 million. Their subscription pricing model is based on a subscription for the organization and a transaction fee with the bank. The potential market for sustainable loans is massive, with only 4% of the fund market currently focused on sustainability. As more companies commit to reaching net-zero goals, the need for financing will only increase. McKinsey estimates that an average of over $3 trillion of financing is required annually to achieve net-zero goals by 2050.

Zero Circle has already made significant progress in the field of green finance. They have several pilot programs underway, signed multiple loans, and have a strong pipeline connecting banks and qualifying organizations. The team behind Zero Circle is experienced and driven, with a background in supply chain compliance, sales, marketing, and technology.

Currently, Zero Circle is looking to secure funding, aiming to Raise $500,000 in a pre-seed round. This funding will be used to onboard around 200 organizations and banks onto their platform and launch the marketplace. With their ambitious goal of helping 100,000 SMBs access sustainable financing globally, Zero Circle envisions assessing and qualifying a trillion dollars in loans through their platform.

In conclusion, Zero Circle's innovative AI-based solution has the potential to revolutionize sustainable finance for small and mid-sized businesses. By simplifying and automating the assessment and qualification process, they are providing a much-needed bridge between businesses and the green finance ecosystem. With their scalable model and strong partnerships in the banking sector, Zero Circle is poised to make a significant impact on the Journey towards a sustainable future.

Highlights:

• Zero Circle aims to unlock sustainable finance within the B2B ecosystem
• Their AI-based solution assesses and qualifies organizations for green finance
• The platform enables small and mid-sized businesses to tap into the green finance ecosystem
• Zero Circle's scoring model drives impact performance based on lenders' criteria
• They are primarily focused on logistics and construction industries
• Only 4% of the fund market is currently focused on sustainable loans
• Zero Circle has pilot programs, signed loans, and a strong pipeline
• They are seeking funding to onboard organizations and banks onto their platform
• The goal is to assess and qualify a trillion dollars in loans through their platform
• Zero Circle envisions helping 100,000 SMBs access sustainable financing globally

FAQ

Q: What is Zero Circle's mission? A: Zero Circle aims to unlock sustainable finance within the B2B ecosystem.

Q: How does Zero Circle assess and qualify organizations for green finance? A: Zero Circle uses an AI-based solution to quickly assess and qualify organizations based on various loan programs and bank criteria.

Q: Which industries is Zero Circle primarily focused on? A: Zero Circle is primarily focused on the logistics and construction industries.

Q: What is the market potential for sustainable loans? A: Currently, only 4% of the fund market is focused on sustainability, presenting a significant gap in financing.

Q: How far along is Zero Circle in their journey? A: Zero Circle has several pilot programs underway, signed multiple loans, and has a strong pipeline connecting banks and qualifying organizations. They are currently seeking funding to further scale their platform.

Q: What is the long-term goal of Zero Circle? A: Zero Circle aims to help 100,000 SMBs access sustainable financing globally and is targeting to assess and qualify a trillion dollars in loans through their platform.