‘s-Hertogenbosch-based startup InvoiceFinance has raised 6 million euro from a group of investors and business angels from the financial industry and Peak Capital. The capital raised will be primarily used for further growth through investments in marketing activities and the recruitment of sales reps. A part of the money will be used for the further development of the data crunching power of the platform to perfect its the risk-assessments capabilities.
InvoiceFinance offers credit lines on outstanding invoices. This is specially critical for many SME’s, who are often regarded as the engine of the economies of many countries. SME’s have to wait long periods before their invoices are paid and run as a result into casflow problems or cannot grow as fast as they potentially can. Only 15 percent of the companies in the Netherlands pay invoices on time. In Europe it’s on average a bit better, but still just 28 percent (in Dutch). At the same time it’s very hard for SME to get loans or other forms of financing from banks.
InnvoiceFinance finances the needed cashflow within 24 hours, taking the outstanding fees as collateral. It calculates transaction fees starting form one percent of the outstanding invoice sum. Professional investors can fund the entrepreneurs via the platform and expect a return of 6 to 10 percent per annum.
InvoiceFinance is founded in 2015 by Sven van der Biezen, Marijn van Aerle and Gion van den Bogaert. Experienced software and business entrepreneurs that saw an opportunity in the space seeing that at banks the process of factoring was still largely done in a analog paper-heavy way. “Bogaert who was working at a bank said that credit files, still in paper, were sent form one desk to another. An extremely inefficient and time consuming process, while fast-growing companies are in desperate need of capital to sustain their growth”, says Van der Biezen to StartupJuncture.
The idea to automate this process, making it much more efficient and easy for entrepreneurs to get the money they have earned as quickly as possible is what inspired the founders to start the company. InvoiceFinance uses advanced machine learning and big data capabilities to calculate the creditworthiness of its clients. “If in the worst case our clients customers don’t pay, the credit we have provided can be regarded as a fast-track loan’ says Van der Biezen. Adding: “We also offer the possibility to insure the payment of your invoice if things might could south. But that almost never necessary.”
Besides using a plethora of datapoints to assess the creditworthiness of debtors InvoiceFinance doesn’t accept B2C companies as clients. Another threshold is that as a client you have to have a turnover of at least 50.000 per annum Van der Biezen says.
‘Exceeded our expectations’
“The level of performance by the founding team has exceeded our expectations in every facet”, says Johan van Mil of Peak Capital as a reasons why he decided to invest again in the company. Peak Capital participated in a 3.4 million euro Seed Round last year. Another reason is that the business model of InvoiceFinance is very solid says Van Mil. “Nowadays it’s even for fast-growing companies hard to get debt financing. The business model of InvoiceFinance is a very reliable way to finance Dutch companies. The invoice is the collateral.”
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