Invoice financing platform snaps up competitor’s book

By George Geddes on 28th November 2018

Fintech

The handover of management of Invocap’s invoice financing will enable the company to focus on its other products as well as developing its presence in the German market.

Invoice financing platform snaps up competitor’s book

Invoice finance provider GapCap has announced it is acquiring Invocap’s invoice finance book. The acquisition enables the financing platform Invocap to focus on other lending products and developing its imprint within the German market.

The invoice financing service is still available on Invocap’s platform however the client management will now be led by GapCap.  

Having financed more than £300m of invoices, GapCap is now a profitable company. Its objective is to support smaller businesses who cannot afford outstanding invoices by providing the company with an advance worth 85 per cent of the invoice’s total value. Once the invoice is paid to GapCap, it forwards the remaining 15 per cent to the business, minus fees.

UK-based Invocap has expanded its business into the Israeli and German markets. Sharing the same objective as GapCap of supporting smaller businesses which are experiencing cash flow problems, the company is looking to focus on its other products available. These products include a smaller short-term credit line or a larger long-term ledger loan which offers up to £500,000.

The CEO of GapCap, Alex Fenton, speaking with AltFi this week, said the takeover is a part of the company’s “aggressive growth”. Fenton also said that it’s very easy for a company to become comfortable with its day-to-day tasks and the Invocap takeover will help GapCap avoid a state of inertia.

Comments

AltFi London Summit 2019

The UK's oldest and best-loved conference for fintech and alternative finance insiders returns for its sixth iteration at etc.venues. We'll showcase the best of the UK's digital banking, online lending and digital wealth sectors through a series of uniquely in-depth discussions and presentations. Open Banking will be in full flight, just over a year on from its launch, and will be a central theme at the event.

18th March 2019


Companies in this Article:

GapCap

More like this:

Curve hits 300,000 customers

6th December 2018
George Geddes

AI platform bags €1.3m in Series A round

3rd December 2018
George Geddes