Leveraging Open Banking data and sophisticated AI, TRIVER funds small business’ short-term working capital needs, underwriting the risk of small business borrowing instantly and automatically. Faster and more easily than high street banks, it can provide advances on a business’s client invoices 24/7, offering peace of mind of simple access to capital when needed.
The GBP 20 million raise follows a GBP 7 million equity funding announced in April 2023. TRIVER subsequently launched its first prototype in May 2023 and a commercial proposition with paying customers in August 2023. It has already advanced invoices with a combined value of more than GBP 1 million. The average invoice size is GBP 12,000 and the average duration of funding is 30 days.
Officials from TRIVER said that most SMEs they interact with are willing to grant them 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 them.
With TRIVER, small businesses are granted a new facility within 3 hours of starting their application, and invoices typically take 2.5 minutes to fund. In coming months, TRIVER plans to reduce this to sub-10 minutes to open a new facility, and less than 1 minute to advance an invoice. In comparison, banks typically take up to 4 weeks to open a facility and 24 hours to advance an invoice because of their manual processes.
Investing partners from Avellinia Capital commented that they are proud to support TRIVER in its journey to become a significant funding provider to UK SMEs. TRIVER has by now a proven model that is set to transform the SME finance market in terms of user experience, decisioning speed, and attractive pricing. Credit provided by banks is slow to be approved and typically costs between 2% and 4% for a 30-day term versus 1.8% offered by TRIVER. There is enormous potential.
The team at TRIVER added that in the current economic climate, they 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, they are confident they can manage the credit risk of customers over the short horizon of their invoices.
TRIVER is designed to be embedded within digital service providers already serving SMEs. These providers benefit from easy-to-integrate, automated processes that make it simpler to provide a short-term working capital solution to support their customers. They can also receive a value-share back when their customers use TRIVER’s service.
The company has already 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. It also is in conversations with prospective partners in other sectors including banks, accounting software, insurance, utilities, and FX, and plans to launch more partnerships in the near future, as per the press release.
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