The service allows SME businesses to convert invoices into cash.
The service allows SME businesses to convert invoices into cash.
Crowdfunding service Fellow Finance is opening a business invoice funding service for companies to receive funding from investors against their invoices.
The new service means small and medium sized business can get financing sooner, the company said. Companies wishing to get loans can upload their invoices to the service and will receive a funding offer immediately.
"Financing a trade receivable is one of the easiest and most reasonable ways for companies to acquire working capital,” said Jouni Hintikka, CEO of Fellow Finance. “By financing an invoice, a firm immediately receives its money, which accelerates money circulation and supports the growth of the business. The invoice finance service by Fellow Finance is technologically a forerunner compared to traditional services and operators in Europe.”
The new product is part of a broader trend of SMEs using alternative forms of financing as it becomes more difficult to get financing through more traditional means, such as bank loans. Fellow Finance entered into the small business lending space in September of last year .
The crowdfunding platform operates in northern Europe and offers peer-to-peer services to investors. It has facilitated €147m in loans to date and has 220,000 users from 43 countries.
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