Liberis announces partnership strategy shift for SME finance
Liberis, the London-based global embedded finance platform, has announced a new strategy shift that will only see it fund SMEs via partnerships and collaborations with ecommerce and payments companies.
The fintech, which was founded in 2007, has financed more than 17,000 SMEs worldwide to date and previously provided direct finance services to small businesses.
Following its recent expansion into Denmark, Liberis is now offering revenue-based financing for an estimated 34,000 local small to medium-sized enterprises. The company has also made the Tech Nation Future Fifty list, cementing its position as o ne of the UK’s leading fintech businesses.
Liberis is now active in seven countries across three continents and has funded SMEs globally with $700M through 40K transactions. The fintech is also now the largest provider of revenue-based financing options for Danish SMEs.
Bigger marketplace for Liberis
According to reports, the fintech has enjoyed healthy growth over the past decade. To date, the company has raised a total funding amount of £200M. The UK firm has more than 30 global partners including ecommerce platforms, payment processors, SaaS providers, online marketplaces and ISOs.
The move into Denmark and the move to operate through partnerships will expand the company’s marketplace potential.
Speaking about the decision to only offer finance to SMEs via partnerships, Rob Straathof, CEO Liberis explained, “Today, only 2 5% of SMEs that apply for funding through banks are successful. Liberis has proven that the businesses that get rejected by traditional banks are suitable for pre-approved financing.”
Straathof said that up until now, Liberis has been offering SMEs revenue-based finance directly, as well as through partners. However, through its growing partner ecosystem it can reach far more SMEs, and the economies of scale enables the fintech to pass on savings to their users.
He continued, “By getting a different view of customers’ businesses through revenue data, we can pre-approve personalised financing offers that work for everyone.
“This system works: we are seeing an 80% renewal rate from SMEs who are able to access the funds they need through the services they already use.”
Pedram Tadayon, Chief Commercial Officer for Liberis, said the fintech’s entry into Denmark, which is ju st emerging from a nationwide lockdown, presents a wealth of opportunities for Liberis and small to medium-sized businesses alike. “We are thrilled to be able to provide its [Denmark’s] owner-managed businesses cashflow support for staff, stock, and utilities.
“We are excited to now be the largest revenue-based finance (merchant cash advance) provider in Denmark, offering a much-needed solution and new approach to help local businesses fund their growth.”
Straathof added, “Our partners are adding a new value stream to their customers, and everyone is happy.”
The FinTech Show: Alternative payments and Open Finance
In episode four of the FinTech Show (originally broadcast live on 7 May at 1pm BST), Scott Birch and Will Girling discuss:
Alternative payments (read the original web story here) - 2:39 to 6:57
The May 2021 edition of FinTech Magazine - 7:00 to 13:26 (featuring Smita Gupta at Finastra)
Unbanked communities - 19:16 to 21:16 (featuring Bogdan Dinu at Thunes)
Open Finance - 22:55 to 25:31
We also poll our LinkedIn community on the question 'Have you used an alternative payment method since the pandemic?’ and conclude with our infamous gameshow section (this week: FinTech Fortunes). A splendid time is guaranteed for all.
Before you go! Follow us on LinkedIn and make sure to tune in on 28 May for the next FinTech Show.