In an era where small and medium-sized enterprises grapple with persistent funding challenges, various platforms are emerging as potential solutions.
German Fintech A³ Handelspartner GmbH intends to address challenges SMEs are facing and is aiming to secure funding via Crowdcube.
A³ has launched its latest funding round on Crowdcube, inviting investors to fuel an alternative lending solution for UK SMEs.
The European Fintech aims to leverage technology to democratize access to finance, enabling SMEs to thrive amid economic challenges.
At its core, A³ appears to be on a mission to break down the barriers that have long plagued SME financing.
In much the same way that other Fintechs have noted, A³ explained that traditional banks, burdened by red tape and slow processes, often overlook these businesses, leaving a funding gap estimated at €400 billion annually across Europe.
A³ aims to step in with a streamlined, tech-driven approach, offering fast and easy access to alternative solutions.
Founded in 2018 and headquartered in Hamburg, the company has already disbursed over €150 million in loans, proving its mettle in a competitive landscape dominated by legacy institutions.
Central to A³’s success is its CreditEngine.
This digital platform leverages various algorithms, machine learning, and big data analytics to automate the lending process from end to end.
With CreditEngine, SMEs can apply for funding online, receive a decision in minutes, and access capital within 48 hours—all at competitive rates starting from 4.99% APR.
The engine assesses creditworthiness not just on financials but on holistic indicators like cash flow patterns, market trends, and even social media sentiment, ensuring inclusivity for underserved segments like startups and seasonal businesses.
What sets A³ apart is its industry-proven model, honed through partnerships with major players in retail, manufacturing, and e-commerce.
By automating 95% of the underwriting process, A³ slashes operational costs, boasting a cost-to-income ratio of just 25%—half that of traditional lenders, which often hover around 50%.
This efficiency translates directly to borrowers: lower overheads mean reduced interest rates and fees, making financing more accessible.
During the past financial year, A³ reported a 180% year-over-year revenue surge to €12 million, driven by a loan book that expanded 250% to €200 million.
The company says it reached profitability in Q2 2025, with EBITDA margins climbing to 35%.
Now via Crowdcube, the German Fintech is seeking €5 million in fresh equity to support its operations.
CreditEngine’s rollout across the EU, targeting expansion into high-growth markets like Poland and Spain.
In return, investors get 10% equity at a €50 million pre-money valuation, a compelling entry point for a company with a clear path to unicorn status.
Early backers on previous rounds have seen some returns, and with A³’s tech stack now integrating blockchain for secure, transparent transactions, the initiative appears to be making some progress.
This funding round seemingly arrives at a key moment.
Post-pandemic recovery has amplified SME resilience, yet inflation and geopolitical tensions continue to squeeze liquidity.
A³’s model attempts to address this, with 70% of its loans said to be going to green initiatives—think solar-powered wholesalers or eco-friendly exporters—with the goal of aligning with EU sustainability mandates.
By fostering a network of 500+ SME partners, A³ aims to serve as a lender and an ecosystem enabler, offering services like invoice factoring and supply chain finance.
With regulatory approvals from BaFin and a team of 50 fintech veterans, A³ seems to be focused on achieving business growth.
As SMEs are the driving force behind the EU economy as they employ two-thirds of the workforce, platforms like A³ could make a significant positive impact.
Have a crowdfunding offering you’d like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!