Europe’s small business credit gap is not a shortage of money. It is a shortage of any cheap way to underwrite borrowers who are all different from each other.

Patrick Stäuble founded Teylor in Zurich seven years ago. It lends to small and medium-sized businesses, factors invoices, runs a private debt vehicle, and licenses its lending software to banks including Landesbank Baden-Württemberg. Since 2024 it has acquired the listed German lender creditshelf, grenke’s factoring business across five European markets, and Düsseldorf software firm CapeTec — three deals in eighteen months, no capital increase for the third.

Why this episode matters: Teylor applies broadly the same credit tests a bank applies, to broadly the same borrowers a bank would accept. The average borrower is a twelve-year-old company. The decision just takes a minute instead of three months. If the risk view were the gap, the loan book would look different from a bank’s. It does not — only the production cost does. Europe’s small business credit problem is a manufacturing problem, and the acquisitions are buying underwriting throughput, not market share.

With Jörn “Joe” Menninger:

• Why two companies reporting €10 million of revenue on the same street are completely different credits — and why that kept small business lending analogue while payments were automated
• The three tests every acquisition has to pass, and what creditshelf, grenke and CapeTec each actually bought
• Why the marginal euro went into buying competitors, with German corporate insolvencies at 4,996 in the second quarter of 2026, the highest since 2005
• The funnel trap that kills inexperienced lenders: a surge of applications can be adverse selection, not product-market fit
• Consolidator or eventually consolidated — the three futures he named: IPO, a European universal bank, or private equity

The correction in this episode. The high-risk credit-scoring category under Annex III 5(b) of the EU AI Act covers natural persons, not corporate borrowers. And the AI Omnibus, in force since 27 July 2026, moved compliance for standalone high-risk systems from August 2026 to 2 December 2027.

His 2030 call: private debt keeps taking share from banks across leveraged buyouts, leasing and retail credit; and roughly a third of German small business lending served by digital platforms by 2030, from what he estimates is under 5% today.

Guest: Patrick Stäuble, Founder & CEO, Teylor AG, Zurich.

Full write-up: startuprad.io

Related: extends The European Scale-Up Question from venture equity into credit. We interviewed creditshelf twice before Teylor acquired it, most recently in episode 378.

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