The alternative lender is now active in seven markets spread over three continents.
Image source: Rob Straathof / Liberis
Alternative finance provider Liberis today announced a change in strategy as the lender moves into Denmark.
Under the new regime, Liberis will only finance SMEs through partnerships with e-commerce and payment companies, rather than directly from the companies themselves.
Explaining the pivot, Liberis CEO Rob Straathof said: “Until now, we have been providing SMEs with revenue-based financing directly, as well as through partners. However, thanks to our growing ecosystem of partners, we reach many more SMEs, and the economies of scale we can achieve allow us to pass our savings on to their users. “
“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. Our partners are adding a new value chain to their customers, and everyone is happy. “
Liberis operates an integrated finance model in which it provides finance to SMEs through marketplaces, software providers and other acquirers such as Worldpay and Global Payments, where its lending products are offered directly to businesses.
Borrowers are typically offered pre-approved income-based financing of up to £ 300,000.
Along with a slight change of course, Liberis entered a new market, Denmark, in the hope of taking advantage of the 34,000 SMEs in the market.
“As Denmark begins to emerge from lockdown, we are delighted to be able to provide its owner-managed businesses with treasury support for staff, inventory and utilities,” added Pedram Tadayon, Commercial Director of Liberis.
“We are thrilled to now be the largest provider of revenue-based finance (merchant cash advance) in Denmark, offering a much needed solution and a new approach to help local businesses finance their growth.”
Thanks to its most recent expansion, Liberis is now active in seven countries on three different continents and has provided more than $ 700 million in financing to more than 17,000 companies to date.
At the end of last year, the alternative lender raised £ 70million from long-term backers British Business Investments, Paragon Bank, BCI Europe and new backer Silicon Valley Bank as it moves into was looking towards international expansion.