ESF Capital has signed a deal to provide £4.6 million to Satago, an online lender that provides cash-flow/receivable financing to UK SMEs. ESF Capital is the same entity that acquired peer to peer lender ThinCats while providing a significant capital injection.
Satago is also interesting as they are one of the first firms to raise capital via equity crowdfunding. Back in 2012, Satago utilized Seedrs to raise their seed funding.
The newly-signed financing arrangement includes an initial £3 million credit line from ESF and an equity investment of £1.6 million. Concurrently Satago raised a further £550,000, with follow-on participation from previous investors. Information provided by the company states there is further potential for additional equity and debt funding. Previously Satago has been in a pilot phase. The funding is said to match the launch of Satago’s finance solution which combines dynamic single invoice financing with an online credit control platform for SMEs.
John Mould, CEO of ESF Capital, said that alternative finance is growing rapidly and Satago posses the technology and expertise to thrive.
“Satago is a clear complement to ESF’s broader business: particularly significant to SMEs seeking a range of finance options and investors looking to diversify their portfolios.”
Satago’s service is described as an “all in one” cash flow solution for UK SMEs that is lower cost than factoring.
“Late payments are a perennial issue for SMEs, damaging their finances as a result. But with this support from ESF Capital, Satago has the firepower needed to finally put SMEs in full control,” stated Steven Renwick, CEO and Founder, Satago. “We’re the only finance company that actually tries to improve clients’ financial health before offering them finance, and we’re excited to now offer these capabilities to a much wider audience”.
According to Satago they have already signed up 1000 SMEs. Satago can finance up to £50,000 per client including invoices as small as £500.