Liberis Changes SMB Funding Strategy

Liberis Changes SMB Funding Strategy

Global embedded business finance provider Liberis has announced that from now on, it only plans to fund small- to medium-sized businesses (SMBs) through partnerships with eCommerce and payments companies, according to a press release.

Up till now, Liberis has been offering SMBs revenue-based finance directly, as well as through partners, the release stated.

Liberis CEO Rob Straathof said in the release that the company reaches “far more [SMBs], and the economies of scale we can achieve enable us to pass on our savings to their users.”

“By getting a different view of customers’ businesses through revenue data, we can pre-approve personalized financing offers that work for everyone,” he said in the release. “This system works. We are seeing an 80 percent renewal rate from [SMBs] 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.”

The company also announced its expansion to Denmark, which comes with serving 34,000 local SMBs via partnerships with local companies. Liberis is now active in seven countries across three continents.

“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,” said Liberis Chief Commercial Officer Pedram Tadayon in the release. “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.”

In December, the company landed $93 million in funding from BCI Europe, Paragon Bank and British Business Investments in addition to financing and venture debt from Silicon Valley Bank (SVB).

That funding boosted Liberis’ overall funds to around $267 million, with the inclusion of over $67 million in equity funding.

Straathof said at the time that the uncertainty in the market was making it hard for SMBs to get funding, which in turn was making it harder for them to survive the adverse effects of the pandemic.



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