Credibly's New AI Patent Aims to Revolutionize SMB Underwriting

DETROIT, MI – January 28, 2026 – In a move that underscores the deepening integration of artificial intelligence into the financial sector, fintech working capital company Credibly announced today it has been issued a new patent by the United States Patent and Trademark Office. The patent, U.S. Patent No. US 12,505,113 B2, protects core components of the company's AI-powered platform, signaling a significant step in its strategy to reshape how small and medium-sized businesses (SMBs) access capital.

This latest addition to Credibly's intellectual property portfolio focuses on embedding Generative AI and Machine Learning directly into the underwriting process. The company asserts that this technology moves beyond the experimental phase of AI, aiming to fundamentally overhaul the legacy systems that have long created bottlenecks for small business owners seeking funding.

A New Blueprint for Lending

For decades, the underwriting process for business loans has been characterized by fragmented systems, manual document review, and lengthy decision timelines. This traditional approach often creates significant friction for both lenders and the SMBs they serve. Credibly's patented technology is designed to replace this outdated model with an integrated, intelligent framework.

The system leverages machine learning, deep learning, and Generative AI to automate complex workflows. This includes evaluating a business's affordability for capital, structuring customized financing offers, and continuously adapting to new risk signals by learning from vast datasets. The intended result is a lending process that is not only faster but also more precise and consistent for entrepreneurs.

"Each new patent we secure reinforces our long-term commitment to building durable, purposeful AI infrastructure for small business financing and doing it in a way that actually improves access to capital for SMBs," said Ryan Rosett, co-founder and co-CEO of Credibly, in the company's announcement. "This isn't about experimenting with AI around the edges — it's about operating in ways that meaningfully improve the speed, accuracy, and outcomes for small business owners."

By building on a prior patent grant, this new issuance fortifies the company's proprietary technology, which it has been developing since its founding in 2010. The focus on making AI a core, foundational capability distinguishes this approach from simply applying analytical tools to existing processes.

The High-Stakes Race for AI Supremacy

Credibly's patent acquisition does not exist in a vacuum. It represents a strategic maneuver in the intensely competitive fintech landscape, where technology and data have become the primary battlegrounds. Numerous online lenders, such as OnDeck and BlueVine, have long utilized proprietary algorithms and data analytics to assess credit risk more quickly than traditional banks. Pioneers like Kabbage, now part of American Express, broke ground by using real-time data from business accounts to offer instant funding decisions.

However, Credibly's explicit focus on patenting its core AI infrastructure, particularly its mention of Generative AI, suggests a strategy aimed at creating a deeper, more defensible competitive advantage. While predictive AI analyzes existing data to forecast outcomes, Generative AI can create new content and solutions, potentially allowing the platform to dynamically structure novel financing products or identify non-obvious correlations in risk assessment. By securing intellectual property rights, Credibly aims to protect its investment and solidify its market position against both established players and new entrants.

This “patent play” is becoming increasingly critical as the lines between technology companies and financial services providers blur. A strong IP portfolio can be a significant factor in company valuation, partnership negotiations, and long-term defensibility in a sector characterized by rapid innovation.

Democratizing Capital or Deepening the Divide?

The broader industry impact of AI-driven underwriting is a subject of both optimism and intense scrutiny. Proponents argue that these technologies can democratize access to capital. By analyzing a wider array of data points beyond traditional FICO scores—such as daily cash flow, bank transactions, and even online customer reviews—AI can build a more holistic picture of a business's health. This can be a lifeline for new businesses, minority-owned enterprises, or companies in underserved communities that have historically been overlooked by conventional lending criteria.

The speed offered by AI platforms is also a critical advantage for SMBs, where the ability to quickly secure funds can mean the difference between seizing a growth opportunity and facing a cash flow crisis.

However, the rise of AI in lending is accompanied by significant ethical and regulatory questions. A primary concern is algorithmic bias. If an AI model is trained on historical lending data that contains implicit biases, it may learn to replicate and even amplify discriminatory patterns, disadvantaging protected groups. The “black box” nature of some complex AI models, where the reasoning behind a decision is not easily explainable, poses another challenge. This lack of transparency can make it difficult for businesses to understand why they were denied a loan and for regulators to ensure compliance with fair lending laws like the Equal Credit Opportunity Act (ECOA).

Regulatory bodies, including the Consumer Financial Protection Bureau (CFPB), are increasing their scrutiny of AI in finance, emphasizing that lenders are ultimately responsible for the outcomes of their algorithms. The industry is now grappling with how to balance innovation with the need for fairness, transparency, and accountability.

A Strategic Pillar for Growth

For Credibly, which has facilitated access to over $3 billion for more than 60,000 SMBs, this patent is a key pillar of its growth strategy. It validates the company's long-term investment in technology and reinforces its identity as a fintech innovator. The company has operated continuously since 2010, navigating economic shifts including the COVID-19 pandemic, and has built a reputation for its focus on risk management and compliance.

"This patent represents another step forward in making AI a foundational capability throughout Credibly's platform," noted Minyang "MJ" Jiang, Chief Strategy Officer. "We've been deliberate about developing AI systems that scale responsibly — with the real-world needs of small businesses always top of mind."

By developing and protecting its own technology, Credibly is working to create a scalable and efficient engine for growth. The patent supports its mission to improve the speed, cost, and overall experience of acquiring capital, positioning the company to compete effectively as the financial services industry continues its technology-driven transformation.