The collaboration will introduce the Paytrail Financing solution to offer revenue-based financing to ecommerce businesses in Finland through a streamlined 4-click process. According to the official press release, revenue-based financing is not widely adopted in Finland, although it offers advantages to small and medium-sized businesses (SMBs). The introduction of Paytrail Financing aims to provide Finnish SMBs with necessary funding within 48 hours. This financing model aligns repayment with the businesses' revenue, ensuring payments are made when the businesses receive payments from their customers.
The partnership will also provide pre-approved funding to around 7000 merchants in Finland, enhancing the availability of fast and flexible financing solutions in the Nordic region.
Paytrail, established in 2007, is a prominent online payment provider in Finland, serving over 20,000 customers according to the company press release. It facilitates online payment transactions for various sectors, including handling payments for the State Treasury's Suomi.fi payments service.
Established in 2007, Liberis aims to offer accessible and responsible finance to small businesses, believing that funding should be a positive influence. Liberis’ revenue-based finance is a form of receivables finance, not a loan, and amounts advanced are subject to status and underwriting processes.
In April 2024, Liberis collaborated with UK-based ecommerce software provider Shop Circle. The collaboration introduced Shop Circle Capital, a solution that aimed to provide seamless and instant funding solutions for merchants. By leveraging this partnership, Liberis was looking to extend its presence within the ecommerce sector, offering merchants flexible funding options.
The expansion came at a time when SMEs faced significant funding challenges. According to the official press release, in the UK, the SME funding gap stands at an estimated GBP 22 billion according to the Bank of England, while in the US, a notable portion of business owners struggled to secure the necessary funding in 2022, as reported by the US Small Business Administration. Shop Circle Capital, powered by Liberis, was designed looking to address these funding gaps by providing financing that aligns with the future revenue of businesses.
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