Embedded finance provider Liberis has announced a change in strategy that means it will only fund SMEs through partners rather than directly, and revealed it has expanded into Denmark.
The strategy shift will see Liberis partner with ecommerce and payments companies to provide funding to SMEs.
According to Rob Straathof, CEO of Liberis, only 25% of SMEs that apply for funding through banks are successful.
“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,” Straathof said.
“By getting a different view of customers’ businesses through revenue data, we can pre-approve personalised financing offers that work for everyone.”
He added: “This system works: we are seeing an 80% renewal rate from SMEs who are able to access the e-funds they need through the services they already use.”
The company also announced its entry into Denmark, where it will offer revenue-based financing for 34,000 local SMEs through partnerships with local companies, taking its reach to seven countries across three continents.
Pedram Tadayon, chief commercial officer for Liberis, said: “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.
“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.”