By Aisling Finn on Thursday 22 April 2021
The alternative lender is now active in seven markets across three continents.
Alternative finance provider Liberis has today announced a change of strategy as the lender puts down roots in Denmark.
Under the new regime, Liberis will only fund SMEs through partnerships with ecommerce and payments companies, rather than directly to the businesses themselves.
Explaining the pivot, CEO of Liberis Rob Straathof said: “Until now, we have been offering SMEs revenue-based finance directly, as well as through partners. However, through our growing partner ecosystem we reach far more SMEs, and the economies of scale we can achieve enable us to pass on our savings to their users.”
“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. Our partners are adding a new value stream to their customers, and everyone is happy.”
Liberis operates an embedded finance model where it provides SME funding through marketplaces, software providers and other acquirers like Worldpay and Global Payments, where its lending products are offered directly to businesses.
Borrowers are typically offered pre-approved revenue-based financing that can be up to £300,000.
Alongside a slight change of direction, Liberis has entered a new market, Denmark, in the hopes of tapping into the 34,000-strong SME market there.
“As Denmark starts to emerge from lockdown, we are thrilled to be able to provide its owner-managed businesses cashflow support for staff, stock and utilities,” Pedram Tadayon, chief commercial officer for Liberis added.
“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.”
Thanks to its most recent expansion, Liberis is now active in seven countries across three different continents and has dished out over $700m in funding to more than 17,000 businesses to date.
At the end of last year, the alternative lender raised £70m from long-term backers British Business Investments, Paragon Bank, BCI Europe, and new backer Silicon Valley Bank as it set its sights on international expansion.