Small business working capital startup Factris secured 10 million euros in funding from NN Investment Partners, a Goldman Sachs-owned asset manager.
Headquartered in Amsterdam and co-founded in 2017 by Brice Laurent and board advisor Marcel Meijer, the FinTech offers capital to small and medium-sized enterprises (SMEs) in Europe, Silicon Canals reported on Thursday (June 9).
See also: Factoring Grows Up as Truckers Pair Modern Financial Products With Faster Payments
The startup aims to offer personalized guidance to SMEs when providing affordable capital and relies on factoring as its primary form of financing. In factoring, Factris gets SMEs money instantly on unpaid invoices instead of having to wait a month or longer for the invoice to be settled. Factris charges a percentage of the invoice for its fee.
Factris expanded into Poland and Belgium in the first quarter of this year and works with SMEs in five countries in the European Union (EU).
Read more: FinTechs Think Big to Help Africa’s SMBs Find Working Capital
“With all of the problems European SMEs face, Factris is proud to be part of the solution. Thanks to more funding, we can increase capacity and offer alternative financing to new markets and more businesses — all to help sustain and grow EU businesses,” Factris CEO Brian Reaves told Silicon Canals.
Factoring is a faster way for SMEs to keep the necessary cash flow on tap when compared to applying for a small business loan, Factris said.
The startup posted double-digit growth over the past year and grew its portfolio by 41% this year compared to 2021. The firm also has 32% more customers now than it did last year, according to the report.
Related: UK SMEs Gain ‘Instant, Single Click’ Lending Via Embedded Finance
In April, Factris partnered with pan-European integrated payments and mobility platform Eurowag. Targeting the commercial road transport sector, the companies will offer Eurowag Cash to help transport and logistics companies finance invoices, according to a press release.
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