Following this announcement, the platform was developed in order to optimise the manner in which small and medium-sized businesses (SMBs) access capital when they might otherwise not meet the criteria for traditional banks.
Praetura is set to deliver asset and invoice finance to SMEs on behalf of the financial institutions and banks that are unable to support the development of those businesses.
Banks asset or invoice finance books have closed and those financial institutions that do offer such facilities usually focus on larger businesses that are more likely to meet their lending criteria, terms, and conditions. Thus, the solution is set to be a response to the crisis that exists currently in financing for SMEs.
Throughout this partnership, BankiFi and Praetura will focus on launching a solution that can be used in order for traditional lenders to meet the diverse financial needs and preferences of the UK’s small businesses. At the same time, Praetura will adopt the risk of the initial investment. Banks and financial institutions will be positioned as go-to financial providers, with companies and businesses being expected to refer back to the bank once they’ve developed into the eligibility criteria.
As a UK-based embedded banking service provider for SMEs, BankiFi will continue to prioritise optimising its commitment to closing the loop between SMEs and securing financial opportunities, as well as providing a solution that aligns with the overall demand of small and medium-sized enterprises and businesses. The partnership with Praetura represents another step into the company’s plan of accelerating the development of existing SME payment solutions. These were designed in order to focus on reducing the time SMBs spend collecting money, as well as improving the way they manage cash flow, growth, and overall access to finance. At the same time, BankiFi will utilise the benefits of Open Banking in order to build an improved relationship with high street banks, as well as its bank-friendly distribution model.
Both companies will focus on meeting the needs, preferences, and demands of their small and medium-sized businesses, while also remaining compliant with the regulatory requirements and laws of the local industry.
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