Liberis announces a change in partnership strategy for SME financing
Liberius, the London-based global integrated finance platform, has announced a new change in strategy that will see it only finance SMEs through partnerships and collaborations with e-commerce and payment companies.
The fintech, which was founded in 2007, has to date funded more than 17,000 SMEs worldwide and previously provided direct funding services to small businesses.
Following its recent expansion into Denmark, Liberis now offers revenue-based financing to around 34,000 local small and medium-sized businesses. The company also made the Tech Nation Future Fifty List, cementing 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 globally with $700 million through 40,000 transactions. The fintech is also now the largest provider of revenue-based financing options for Danish SMEs.
Larger Marketplace for Liberis
According to reports, fintech has seen healthy growth over the past decade. To date, the company has raised a total funding amount of £200 million. The British company has more than 30 global partners, including e-commerce platforms, payment processors, SaaS providers, online marketplaces and ISOs.
The establishment in Denmark and the decision to operate through partnerships will expand the company’s potential in the market.
Speaking of the decision to only offer financing to SMEs via partnerships, Rob Straathof, CEO of Liberis explains: “Today, only 2 to 5% of SMEs seeking financing from banks are successful. Liberis has proven that businesses rejected by traditional banks lend themselves to pre-approved financing.
Straathof said that so far Liberis has offered revenue-based financing to SMEs directly, as well as through partners. However, thanks to its growing partner ecosystem, it can reach many more SMBs, and the economies of scale allow the fintech to pass the savings on to its users.
He continued, “By getting a different view of customer business through revenue data, we can pre-approve personalized financing offers that work for everyone.
“This system works: we see an 80% renewal rate from SMEs who can access the funds they need through the services they already use.”
Pedram Tadayon, commercial director of Liberis, said fintech’s entry into Denmark, fresh out of a nationwide lockdown, presents a wealth of opportunities for Liberis and small and medium-sized businesses. “We are delighted to be able to provide its [Denmark’s] cash flow support for owner-managed businesses for personnel, inventory and utilities.
“We are delighted to now be the largest provider of revenue-based finance (merchant cash advances) in Denmark, offering a much-needed solution and a fresh approach to helping local businesses finance their growth.”
Straathof added: “Our partners are adding a new value chain to their customers, and everyone is happy.”