The investor behind the new funding is Sydney-based financier Global Credit Investments (GCI), a provider of specialist debt capital. The partnership between the two companies will allow Grapple’s strategy to continue to scale efficiently and maintain its current growth trajectory, the publication states.
According to the founder and CEO of Grapple, businesses continue to seek out alternative financing solutions from non-bank lenders, which allows Grapple to perform well. The current conditions, with falling property prices and rising interest rates, are making it harder for SMEs to secure business funding from banks and large financiers. Invoice financing is becoming an increasingly attractive option to businesses looking to improve cashflow, increase working capital, and accelerate their growth. We expect the influx of new customers to continue over the next 18 months, the company’s CEO concluded.
As reported by Australian Fintech, there is an approximately USD 200 billion shortfall in the capital requirements of Australian SMEs whose needs are becoming increasingly diverse. Grapple wishes to leverage its LendTech platform to provide a rolling line of credit that a business can access when and as they need it. In the current market, flexible and readily attainable finance can make a real difference to Australian businesses, the company states, according to Australian Fintech.
Grapple’s Invoice Financing solutions offer two new B2B payments solutions – Grapple Pay and Grapple Now – which appeal across a variety of sectors. Australian retailers have used Grapple Pay for bulk stock purchases ahead of seasonal peaks knowing they can pay overtime whilst small businesses have used Grapple Now to secure early payment of their invoices whilst their suppliers pay over time, improving their immediate cashflow and strengthening their supplier relationships, according to the company.
The company CEO said that Grapple has a product suite that appeals to sectors of the financing market that banks and traditional financiers have reportedly underserviced or in some cases ignored. The company’s proprietary tech is Australian-owned and operated and was built in consultation with Australian SMEs to give them the flexibility they desire to accommodate running and managing a business.
As mentioned above, in July 2022, the SME financier and fintech launched new B2B payments solutions to augment the cashflow of businesses. Grapple Pay allows businesses to register on the Grapple platform and pay their suppliers upfront, while they pay over four monthly instalments. Grapple Now delivers businesses immediate payment of their invoices while providing customers with the option of paying in four monthly instalments.
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