The German factoring market alone was more than 200 billion EUR in transactions last year, the largest in Europe, with a growth rate of 10% over the last six years.
To that end, Bezahlt is specifically targeting the freelancers and the SMEs who, according to the company, have yet to benefit from the advantages of factoring that many corporate players take for granted.
“This customer group is ignored by banks and other financial institutions that offer factoring services that have largely been directed almost exclusively at large corporates and companies with minimum sales of 100,000 EUR”, Sebastian Diemer, the co-founder of Kreditech and now Bezahlt, argues.
It plans to do this with better scoring technology, accepting invoices from as little as 1 EUR. There is also no minimum sales volume and no bank history necessary, whilst still resulting in a success rate of about 70%, apparently. The first invoice is free after which the startup charges a 2.3 to 3.3% monthly fee on the amount invoiced.
Bezahlt is backed to the tune of 3.5 million EUR with a mixture of equity and debt. Investors include Point Nine Capital, Fly.vc, German Startup Group, La Famiglia, Michael Brehm, Heiko Hubertz, Raffael Johnen (CEO Auxmoney), Marcus Börner (CEO Optiopay), and a number of unnamed banks.
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