Factris has closed a new EUR 50m secured financing agreement with asset manager NN Investment Partners (NN IP)
The facility will be used to provide financing to European small and medium-sized enterprises (SMEs) via the purchase of their trade-related invoices, which allows companies to get paid quicker for their sales and thereby helps them to manage their liquidity position better. As invoice finance is proving to be one of the fastest forms of funding available to small businesses, it is becoming an increasingly valuable tool in helping SMEs to manage their working capital requirements. This has taken on particular importance during the Covid-19 pandemic, which has negatively impacted the cash position of many independent businesses.
This newly secured debt facility benefits from full trade credit insurance. This enhancement enables NN IP to meet its responsible investing (RI) ambitions by supporting the European real economy, while also delivering a lower risk investment opportunity for its clients. In addition, via combining NN IP’s RI criteria with Factris’s policies, the transaction ensures funding will be increasingly allocated towards more sustainable small and medium-sized businesses and sectors.
Factris’ CEO Brian Reaves comments, “Factris aims to help small businesses during the ongoing pandemic, and we are excited to have NN IP as a new funding partner. With their asset managers’ investment, risk management expertise, and our innovative platform, we are determined to help hard-working entrepreneurs during a time of global uncertainty.”
Factris is a proven financial leader through technological innovations, such as their Finance Automation for Business platform, or “FAB,” which automates tasks for employees to focus on personalised customer care. Since the launch of the FAB, Factris has experienced zero fraud cases, increasing the reliability of invoice financing. Effectively reducing opportunities for fraud is a key risk mitigant in this form of finance.
Channel Capital Advisors LLP was the arranger, structurer, and sole placement agent and is acting as Programme Manager on this transaction.