Factris, an Amsterdam-based fintech company, announced on Monday that it has launched its financing services across Belgium to help SMEs access capital through factoring.
The company says that this expansion, a part of its larger pan-European strategy, will bolster hundreds of thousands of SMEs, accounting for 99.85 per cent of all firms in Belgium.
Brian Reaves, CEO of Factris, says, “With our expansion into Belgium, Factris is one step closer to making our pan-European vision a reality, helping thousands of SMEs across the EU access quick cash flow, factoring will become an even more common alternative to bank loans.”
What is Factoring?
Factoring is a financial transaction and type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount.
A business will sometimes factor its receivable assets to meet its present and immediate cash needs.
Factris: What you need to know
Founded by Brice Laurent and Marcel Meijer, Factris is on a mission to provide quick and affordable capital to SMEs across Europe using financial technology with personalised guidance.
Factoring, which is Factris’ primary form of financing, helps 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.
According to the company, factoring has already seen steady growth in Belgium, averaging €4.12M growth in volume YoY over the past five years.
Factris plans to leverage and expand its platform by focusing on automation and AI-powered risk management. It will make applications easier and approvals faster while invoicing huge amounts compared to its rivals.
Currently, Factris finances SMEs in several European countries, including Lithuania, Latvia and the Netherlands. The company also plans to expand into two other markets by 2022.
To date, Factris secured a total funding of €62.9M from investors, including Speedinvest, NNIP, AB Ventures, and Dexteritas Investment.
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