Small and Medium-Sized businesses or SMEs can sometimes struggle in managing their liquidity position better. Amsterdam headquartered fintech Factris helps such SMEs by turning their invoices into cash in just 24 hours. The startup seemed to be taking it slow with an initial seed funding back in 2018 and quick money raise via grant funding earlier this year. However, the company has now zoomed ahead with a notable €50M in a new financing agreement.
Helping SMEs better manage their liquidity position
The latest €50M funding for Factris is based upon a secured financing agreement with asset manager NN Investment Partners (NN IP). The company is poised to utilise the fresh funds for providing easier financing to European SMEs. It does so by purchasing their trade-related invoices, which enables SMEs to better manage their liquidity position.
Benefiting from full trade credit insurance, this newly-secured debt facility option is said to enable NN IP to meet its responsible investing (RI) ambitions. It will be realised by supporting the European economy while delivering a lower risk investment opportunity for NN IP clients. Furthermore, by combining NN IP’s RI criteria with Factris’s policies, the transaction ensures funding will be geared more towards better sustainable small and medium-sized businesses and sectors.
Factris’ CEO Brian Reaves says, “Factris aims to help small businesses during the ongoing pandemic, and we are excited to have NN IP as a new funding partner. With their asset managers’ investment, risk management expertise, and our innovative platform, we are determined to help hard-working entrepreneurs during a time of global uncertainty.”
Factris: An online invoice factoring platform
As per Factris, invoice finance is becoming an increasingly valuable tool for SMEs as it works as one of the fastest forms of funding available. Along with helping SMEs better manage their working capital requirements, the option apparently gained notable importance during Covid-19, as the cash position of many independent businesses were negatively impacted by the pandemic
Factris also offers a Finance Automation for Business platform (FAB), which automates tasks for employees to focus on personalised customer care. The company says it has registered zero fraud cases since the service was launched.
Image credits: Factris