Banxware is transforming by shifting from a traditional structured finance model to a capital-light, highly scalable forward flow arrangement. This change aims to unlock the potential of embedded lending for small and medium-sized enterprises (SMEs) across Europe.
Having previously utilised a structured warehouse facility, Banxware is now entering a new phase of growth. With the forward flow agreement, its banking partner will take on 100% of the loan portfolio generated through Banxware's partnerships with embedded platforms. This transition allows Banxware to reallocate its equity towards scaling operations, increasing product development, and pursuing international expansion, rather than focusing on capital-intensive loan funding.
Banxware is experiencing growth and is now integrated with over 40 digital platforms. The company has launched a collaborative lending product with UniCredit, enabling businesses to access financing ranging from EUR 1,000 to EUR 5 million through a single integration and application process.
As a connector between digital platforms and a selective network of banks and lenders, Banxware ensures that pre-qualified borrowers meet each lender’s criteria. This approach increases conversion rates and optimises unit economics.
Banxware for Brokers enables loan brokers to assist clients through its platform, partnering with HypoVereinsbank/UniCredit, improving transparency. The new capital from UniCredit will support Banxware's expansion as a middleware layer for SME lending, focusing on user experience, platform integrations, AI-based underwriting, and market expansion.
In December 2023, Banxware secured EUR 15 million in Series A financing from UniCredit, Fabrick, and other investors, paving the way for a partnership with HypoVereinsbank. UniCredit, as a strategic investor, optimised this collaboration by leveraging its extensive network to improve lending efficiency and increase customer offerings for SMEs.
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