Close the information symmetry gap
Since freelancers work in a different way, it can be challenging to show the standard patterns of income. The traditional way of evaluating a business has limitations for this asset class.
What’s needed is a way to close the information symmetry gap that currently exists between banks and freelancers.
Our threaded finance platform and methodology allow Noumena to capture the stories of this asset class and present a richer picture to capital providers.
The freelancer is the business
Freelancers are resourceful and highly skilled self-starters. They want to be their own boss, create their own schedule, and choose their own projects and clients.
A freelancer plays multiple roles in their business. If they fail to deliver results, they don’t get repeat customers. If freelancers don’t perform, they don’t get paid. They manage all parts of the business, while maintaining excellent customer service and delivering superior work.
With so much at stake, who’s more invested in the business’s success than the worker who is the business?
The Great Resignation didn’t mean that millions of people suddenly stopped working. Millions of people left full-time, conventional jobs to blaze their own trails and launch their own businesses—and potentially create much more wealth.
In 2021, 44% of freelancers earned more money freelancing than in their traditional jobs; that’s up from 32% in 2019.
Financial solutions aligned to freelance behavior
Our business model is about providing lenders and investors with fresh insights into how freelancers operate their businesses. We’re also making sure that the type of capital aligns with the use of capital.
We're innovating financial solutions that are based on how freelancers use capital and how they earn. Our capital partners can use our solutions, customize, or even design or import their own financial products.
Examples of financial solutions currently available include:
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Revenue share financing for growth capital uses
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Income share financing solution for individual growth capital
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A contract purchase solution to pay freelancers faster
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An educational loan to help freelancers level up their skills
Rich data drives the future
In addition to access to our customer base, Noumena provides capital providers with a rich setup of traditional and proprietary data.
Traditional data includes Experian consumer and commercial credit bureau data and bank account data via Plaid to assess cash flow trends and detect other “risk signals.”
Conventional credit scoring and underwriting perform well, but traditional methods don’t always work for predicting wealth creation.
Solopreneurs on Noumena’s platform have provided proprietary data that has been found statistically incremental to these traditional metrics from a credit perspective. This data includes educational and professional experience, “hard” and “soft” skills, and attitudinal and psychometric variables. The freelancer/user retains data ownership, and we license the data from users.
Noumena uses the latest best-in-class anti-fraud and identity verification tools from both IDology and Experian.