The fintech has signed commercial arrangements to provide managed services to four more Dutch factoring companies
Factris has put recent funding to work by purchasing or managing factoring company’s portfolios worth 23 MM EUR
Amsterdam-based fintech Factris has just acquired the factoring portfolios of the Dutch factoring company Payfix. Factris was able to acquire the portfolio and provide services to the factoring companies thanks to recent funding, with a 5 MM EUR funding deal struck last month with the private debt fund Dexteritas and partnering for 50 MM EUR with the asset manager NN IP in Q3 of 2020. Factris will now begin using their own tech-enhanced financing method on the newly-acquired invoices from the five factoring portfolios.
The portfolios contain invoices which Factris will use to finance the SMEs to whom the invoices belong. This takes place when an SME “factors” an unpaid invoice by selling the invoice to Factris for a small fee, thus quickly converting their debt into working capital. Factris then pursues payment for the unpaid invoice that they recently purchased. The portfolios will add significant value to the fintech, allowing them to acquire Special Purpose Vehicle (SPV) funding at a lower price range. And with thousands more invoices to factor, Factris is slated to see major growth in their financing services.
Factris’ CEO Brian Reaves sees this next step as essential in helping SMEs across the EU. Comments Reaves, “We are providing our financing infrastructure on commercial terms to help factoring companies finance SMEs with the benefit of our technology, risk management, and funding at scale.”