Dutch Fintech firm Factris recently acquired €10 million in capital following their partnership with NN Investment Partners (NN IP).
This investment will be used to help finance trade-related invoices for European SMEs.
Currently among the largest alternative factoring firms operating in the Netherlands, Factris has started expanding its business into the other European markets.
The company’s factoring services are provided in five EU nations after entering Poland and Belgium’s markets in Q1 2022.
Thanks to the additional funding, Factris claims it is now well-positioned to enter other EU markets in the foreseeable future.
The growing demand for invoice factoring from small businesses is evident from Factris’ steady growth during the last year.
As noted in the update, Factris’ portfolio expanded by 41% this year in comparison to the same period in the past year, and more than 32% more clients than the year prior.
This rise in demand for financing may be due to the ongoing war in Ukraine and the COVID-19 crisis, with both issues presenting financial challenges for SMEs across the European Union.
Factris CEO Brian Reaves said:
“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.”
As noted by its management, Factris has offices in the Netherlands, Lithuania, and Latvia.
The firm claims it has been “disrupting the financial system with its innovative solutions to traditional banking since 2017.”
The company “focuses on assisting SMEs by providing low-cost working capital, along with other custom-tailored financial services.”
The primary weapon in Factris’ arsenal is “an innovative method called ‘factoring’.”
Instead of the traditional, complicated process of acquiring a small loan from a bank, factoring “allows an SME to receive almost-instant capital by Factris purchasing their unpaid invoice and managing its collection for a fee.”
What Factris has been able to achieve is “to place the power and resources of a multi-country financial company into the hands of local SMEs across Europe.”
This is achieved with a focus on customer service on a local scale, while at the same time “harnessing the power of automation technology through Factris’ “Financing Automation for Business” platform, or FAB Platform, allowing the Amsterdam-based company to support SMEs throughout Europe.”
