The newly-signed financing arrangement comprises an initial GBP 3 million credit line from ESF and an equity investment of GBP 1.6 million, with further potential for additional equity and debt funding. The deal signals the launch of Satago’s financing solution, which marries dynamic single invoice financing with a free, online, universally-accessible credit control platform for SMEs. Satago invoice finance had previously been in a pilot phase since January 2016.
More than 1000 SMEs already signed up to Satago’s platform, the company can currently finance up to GBP 50,000 per client (including invoices as small as GBP 500) and is predicting strong growth in the year ahead.
Satago’s all-in-one cash-flow solution acts as a more flexible and lower-cost alternative to traditional financing arrangements such as factoring; it provides a dynamic, near-instant source of finance as an alternative to traditional bank overdrafts; is designed to assess and improve clients’ financial health prior to offering any financing; incorporates a fully-integrated solution for invoice reminders; allows clients to visualise credit risk from their sales ledger – enabling users to formulate credit risk policies and limits, and seamlessly links with online accounting software, allowing compatibility with existing infrastructure and software packages.
This is ESF’s second strategic partnership, following its acquisition of 73.5% of ThinCats, a provider of secured P2P SME loans, in December 2015. The investment in Satago complements ESF’s strategy to support innovative platforms providing a range of financing options to SMEs.
Concurrent with the investment from ESF, Satago raised a further GBP 550,000, including follow-on participation from previous investors.
Satago is an all-in-one online finance and cash-flow platform offering finance and receivables management to microbusinesses and small- and medium-sized enterprises (SMEs).
ESF – European Speciality Finance – Capital is a marketplace lending investment and operating business, founded in July 2015.
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