SME working capital provider Triver has raised a further £20m to bolster how small businesses can access finance.
In a statement, the company said the deal – a £20m debt facility with Luxembourg-based Avellinia Capital – will enable it to offer over £200m of funding annually to help small businesses in the UK as well as further its product development.
The fintech, which uses Open Banking data and AI technology to funds small business’ short-term working capital needs, previously secured £7m equity funding in April 2023 involving Andreessen Horowitz, Stride VC, Axeleo Capital, Motive Partners, and Sequoia Capital.
It subsequently launched its first prototype in May and a commercial proposition with paying customers in August. According to the firm, it has already advanced invoices with a combined value of more than £1m while the average invoice size is £12,000 and the average duration of funding is 30 days.
Speaking on the deal, Jerome Le Luel, Founder & CEO of Triver, said: “The vast majority of SMEs we interact with are willing to grant us access to their bank data via Open Banking. They’re familiar with this tool because it is commonly used with their accounting software. They see the benefit of a simpler process than manually providing bank statements and other data. Nor do they have to make personal guarantees when applying to us.”
Triver said it also plans to reduce the time it takes to apply for and open a new facility to less than 10 minutes. Currently small businesses are granted a new facility within 3 hours of starting their application.
In addition, it wants to reduce the time it takes to advance an invoice from 2.5 minutes to less than 1 minute, strengthening its proposition when compared to processing times as traditional banks. As part of its growth plans, it has signed 11 distribution partners since launching, spanning commercial brokers and lending platforms. These include Funding Options by Tide, Newable, Swoop, Clear Business Finance, and Capitalise.
“In the current economic climate, we see significant demand from SMEs to access short-term cash flow financing as payment terms extend and banks tighten access to credit. Thanks to continuous access to Open Banking data, we are confident we can manage the credit risk of our customers over the short horizon of their invoices,” Le Luel added.
