For Small and Medium-Sized businesses or SMEs, it is crucial to manage and juggle the sources, timing and utilisation of cash flow. However, a lot of SMEs are shouldering the burden of ‘late payments’ at any given time. Well, imagine the whole lot of benefits small or medium-sized businesses can get from having more payment-related insights?
Factris, an Amsterdam-based fintech startup is changing the landscape with its financing solution in Europe. The company helps SMEs by turning their invoices into cash in just 24 hours.
Secured €5M funding
The Dutch startup recently received another capital injection of €5M from AB ventures, the corporate venture capital arm of the Arab Bank. Existing investors including Speedinvest, Optima Investments, and other high net worth investors also participated in the Series-A equity funding round.
A few days back, Factris raised €50M in a new financing agreement with asset manager NN Investment Partners (NN IP).
The company intends to utilise the funds to continue to expand operations and its business reach. Factris is now at various stages of onboarding other factoring companies to become Factris brokers or partners, thus further extending their financing impact throughout the EU.
CEO Brian Reaves explains the importance of partnering, “Factris is determined to help SMEs in this difficult environment either directly or via our partners. Factris is happy to be working with AB Ventures and is looking forward to providing financing services in partnership with them in selected markets”.
Provide low-cost working capital to SMEs
As per Factris, the additional equity, as well as the scale and reach via the partnerships, will help create more opportunities to finance businesses amid the COVID-19 pandemic.
Factoring, which is Factris’ primary form of financing, continues to help its customers by providing working capital using their unpaid invoices. The company claims that this alternative form of financing has proven to be substantially faster in sourcing the required cash flow to businesses, when compared to the more traditional forms of financing, such as businesses applying for a bank loan.
Finance Automation for Business (FAB)
Factris has developed a FAB (Finance Automation for Business) platform, which automates tasks for employees to focus on personalised customer care. The FAB platform lets clients upload their invoices, request credit limits, monitor payments, and receive same-day capital for invoices that are factored.
“AB Ventures is excited to be part of the Factris journey and is looking forward to closing cooperation with Factris in developing receivables based financing solutions in Europe and beyond,” comments Faisal Hakki, MD of AB Ventures.
Main image credits: Factris