Small merchant fintech company Dailypay is expanding funding for early-stage businesses and young small merchants by promoting a model that calculates financial limits for small merchants based on transaction data. The company said it improved access to finance by reflecting actual transaction stability and liquidity rather than guarantees, collateral or existing financial records.

Dailypay said on Oct. 19 it is expanding financial support based on its Dynamic Credit Limit (DCL) for early-stage businesses in their first 1 to 3 years and young small merchants in their 20s and 30s.

DCL is a model that uses non-financial and unstructured data such as real-time sales details, return rates and delivery status to assess an operator's current liquidity and credit, then dynamically adjusts financial limits accordingly. Dailypay said this lowers the barrier to funding for early-stage businesses that lack financial history or collateral.

Dailypay said the share of its overall customers who are early-stage businesses in their first 1 to 3 years was tallied at 36.24%, while small merchants in their 20s and 30s accounted for 72.59%.

Their reuse rate was 96.75%, and their cumulative amount used accounted for 81.85% of total payments.

Dailypay plans to keep expanding financial solutions tailored to businesses' growth stages and funding needs, based on real-time big data analysis.

Dailypay CEO Hae-woo Lee (이해우) said, "Small merchant finance is focusing on what transactions are generated and how stably, rather than the size of a company or whether it has a guarantee." He added, "We will develop it into financial infrastructure that combines transaction data, dynamic risk evaluation and real-time liquidity."