finmid partners with Teya to bring flexible financing to merchants in Croatia and Hungary

Source: finmid / Hawthorn Advisors

finmid, the embedded lending infrastructure provider, has partnered with Teya, the financial services provider supporting local businesses across Europe, to bring fast, flexible financing to merchants across Croatia and Hungary.

SMEs in the CEE region continue to face obstacles to financing, like limited credit histories, insufficient collateral and outdated bank processes. Through this partnership, finmid and Teya are creating new opportunities for underserved SMEs in both countries to access the capital they need to grow.

Through the partnership, local businesses can access personalised, pre-approved financing based on real-time performance data from within the Teya platform. Funds are paid out in a median of three minutes, repayments follow with monthly revenue and capital can be used for anything from equipment to marketing.

The early stages of the partnership have seen more than 500 Teya merchants financed with a Net Promoter Score (NPS) of 86.

As part of the tie-in, finmid becomes part of Teya’s pan-European marketplace as a full-stack financing partner providing everything platforms and their merchants need, from underwriting to compliance, servicing and capital, to unlock untapped growth.

Teya already serves 80,000+ local businesses in nine European markets with payments, business accounts, and expense management technology. Today’s partnership extends that mission into financing while further cementing finmid’s presence across CEE, in addition to a newly-launched pilot programme in Portugal.

Teya joins a growing list of platforms using finmid as their embedded lending partner across 30+ markets, including Bolt, Wolt and Delivery Hero. Across finmid programmes, merchants typically see up to 45% uplift in sales, NPS above 80, and 80% go on to renew their financing. Platform partners using finmid then see a 70% reduction in churn.

Sahithya Vemana, head of banking at Teya, said: “Teya’s mission is to help local businesses thrive, and access to capital at the right moment is critical to that. Merchant Cash Advance makes funding simple, with financing embedded into Teya and repayments linked to sales.

“Together with finmid, we’re bringing this convenient experience to members in EU markets where it hasn’t previously been available, starting with Croatia, Hungary and Portugal.”

Max Schertel, co-founder and chief executive officer of finmid, said: “Small businesses in Croatia, Hungary and Portugal have enormous appetite to grow but what’s been missing is the infrastructure to get capital to them quickly and fairly.

“Our partnership with Teya changes that for merchants across markets and sends a clear signal to platforms across Europe – embedded lending is no longer a future ambition, it’s available now.”