Liberis announces a change in partnership strategy for financing SMEs | Financial services (FinServ)
Liberis, the London-based integrated global finance platform, has announced a new shift in strategy that will only allow it to finance SMEs through partnerships and collaborations with e-commerce and payments companies.
FinTech, which was founded in 2007, has funded more than 17,000 SMEs worldwide to date and previously provided direct financing services to small businesses.
Following its recent expansion in Denmark, Liberis now offers revenue-based financing to approximately 34,000 local small and medium-sized businesses. The company also made the Tech Nation Future Fifty List, consolidating its position as one of the UK’s leading fintech companies.
Liberis is now active in seven countries on three continents and has funded SMEs around the world with $ 700 million through 40,000 transactions. FinTech is also now the largest provider of revenue-based financing options for Danish SMEs.
Largest marketplace for Liberis
According to reports, fintech has experienced healthy growth over the past decade. To date, the company has raised a total funding amount of £ 200million. The UK company has more than 30 global partners, including e-commerce platforms, payment processors, SaaS providers, online marketplaces and ISOs.
The move to Denmark and the transition to operations through partnerships will expand the market potential of the company.
Speaking of the decision to only offer financing to SMEs through partnerships, Rob Straathof, CEO Liberis explained: “Today, only 25% of SMEs that apply for financing from banks are successful. Liberis has proven that businesses rejected by traditional banks lend themselves to pre-approved financing.
Straathof said that until now, Liberis has offered revenue-based financing to SMEs directly, as well as through partners. However, thanks to its growing ecosystem of partners, it can reach many more SMEs, and economies of scale allow fintech to pass the savings on to its users.
He continued, “By getting a different view of client activities through revenue data, we can pre-approve personalized financing offers that work for everyone.
“This system works: we are seeing an 80% renewal rate from SMEs that can access the funds they need through the services they already use.
Pedram Tadayon, Commercial Director of Liberis, said the entry of fintech into Denmark, which has just emerged from a nationwide lockdown, presents a multitude of opportunities for Liberis and small and medium-sized businesses. “We are delighted to be able to offer [Denmark’s] Support of the cash flow of owner-managed businesses for staff, inventory and utilities.
“We are thrilled to be now the largest provider of revenue-based financing (merchant cash advances) in Denmark, offering a much needed solution and a new approach to help local businesses finance their growth. “
Straathof added: “Our partners are adding a new value chain to their customers, and everyone is happy. “