Timelio is a Melbourne-based fintech startup looking to disrupt traditional lending models by allowing businesses to turn invoices into cash by selling their invoices online on a P2P marketplace. It raised $5 million via an equity funding round last month. The investment is backed by the Thorney Investment Group, as well as by former ANZ board director John Dahlsen, who has in the past criticized banks for their lack of innovation. Timelio intends to use the investment to expand its current team, focusing on leadership, sales, and marketing, as well as to continue developing its technology. The company launched in 2015 and boasts “trading over $40 million in invoices and growing at rates up to 30% per month”.
As reported in Australia’s Financial Review:
“According to statistics compiled by the Ombudsman’s office, 90 per cent of small business failures are due to poor cashflow, small businesses are owed $26 million in unpaid invoices and the average owed for each small business at any one time is $13,200. In addition, small business owners spend an average 12 days a year chasing unpaid invoices and 27 per cent of small businesses have been forced to take out loans to pay their suppliers and wages.”
Co-founder and CEO Charlotte Petris describes that technology has not yet fully disrupted the space for small businesses to directly connect with investors to access fast and flexible growth capital. According to Petris;
“Increasing the awareness of new financing options for consumers and SMEs will help businesses across Australia take advantage of new opportunities for growth and create new jobs. Access to finance for businesses is proven to increase turnover, employment and profitability. …
30% of businesses miss opportunities because of a lack of access to capital. Every business that does not receive the funding they need, is not increasing productivity, is not bringing on new employees and this has a knock-on effect throughout the economy. Availability of appropriate finance is essential to ensure that businesses can achieve their potential and contribute to Australia’s economic future.”