s-Hertogenbosch, the Netherlands-based Floryn, an online lending market for small and medium-sized enterprises, announced that it has raised €65M from NatWest, a London-based retail banking company.
The Dutch fintech says it will use the funds to strengthen its position as the most cost-effective alternative to a bank. The announcement comes five years after raising €9M from Endeit Capital, Peak Capital, and Kalo Bagijn, among others.
In 2019, the company also received €60M in financing from NIBC Bank and others.
Founded in 2016 by Sven van der Biezen (CEO), Marijn van Aerle (CTO), and Gion van den Bogaert (CFRO), Floryn offers business loans up to €3M.
How does it work?
The Dutch company uses machine learning and data analysis to quickly evaluate risks by analysing recent banking transactions and other relevant data points.
The company makes it easy for customers to get started by connecting their bank accounts to the platform. Once connected, Floryn can read all tactions and even consolidate multiple accounts from different banks – making it easy for customers to get a complete financial picture.
The AI-based classification algorithm then labels each transaction with tags such as revenue, taxes, financing, and more.
Once all the data is available, Floryn sends that to its machine-learning models and runs different versions and iterations.
The ML model provides an easy-to-use dashboard for underwriters and salespeople to quickly access the data they need to make informed decisions. This model also guides underwriters through decision-making, providing easy decisions that lead to rejections or approvals.
A business applying for a loan on Floryn will know whether they will get it within a day.
Once the loan is approved, Floryn credits the money to the business account. The business can decide to withdraw the funds at any time.
According to Marijn, the fastest conversion was 4 hours and 22 minutes from signing up on their website to transfer money.
Since its inception, the company has received more than 60,000 credit applications.
“Despite a challenging market in recent years, Floryn has continued to grow as a financier with ambition, in which a good customer experience and service have played an important role,” says Gion van den Bogaert, CFRO of Floryn. “Floryn has provided more than 650 million euros in financing since its inception, and thanks to this expansion, we can now also help larger companies at more competitive rates, up to a credit limit of €3M.”
Floryn has a PSD2 licence from De Nederlandse Bank (DNB) and currently employs 60 people.
“NatWest is actively seeking opportunities to support fintech companies that make a distinctive contribution to the sustainable growth of the economy,” says George Ross, NatWest’s Head of Specialty Finance. “We are therefore delighted to welcome Floryn as a new client of an innovative lender that aligns well with NatWest’s core values of fostering the potential of companies to grow and succeed.”