UK Revenue Based Finance (RBF) Company Outfund plans to invest £500m ($627m) in loans to more than 5,000 businesses over the next 12 months.
According to multiple reports on Wednesday, April 27, this announcement follows Outfund’s recent £115 million ($144 million) Series A completion.
In addition, the company plans to use the funds to lend more capital to borrowers, raising the maximum loan per small business to £10m. The funding means Outfund is now the largest revenue-based finance company in the UK, Spain and Australia.
“Our ambition is for Outfund to be the place to go to grow your business, without compromising your equity or wasting time fundraising,” said Daniel Lipinski, the company’s founder and CEO.
“That’s why we’ve spent time developing a way to make the process of securing funds for growth easier, fairer and, most importantly, faster. Our approach has been warmly welcomed by founders and directors alike. ‘now, and now we’re looking at how we can open it up to more companies and continue to be part of their journey to success for a long time.
Founded in 2020, Outfund is an alternative investment platform that focuses on venture capital funds and bank loans to invest in businesses such as e-commerce, software as a service (SaaS) and retail. retail.
Outfund can lend between £10,000 ($12,500) and £10 million ($12.5 million) in funding, available to businesses that accept online payments. These companies must have a monthly turnover of at least £10,000 and have been in business for at least six months.
Read more: Revenue-Based Financing Drives E-Commerce and SaaS Growth in MENA
Earlier this month, PYMNTS spoke with Ahmad Coucha, co-founder and CEO of Cairo-based finance firm FlapKap.
While RBF has become popular in the developed world, it remains relatively new in regions like the Middle East and North Africa (MENA), where Coucha says FlapKap is the first company of its kind.
“Our AI solution helps us understand the client’s accounting processes, spending habits and correlation with sales to determine if they have the potential to grow should their advertising spend increase – one of largest expense items for businesses,” he said.
NEW PYMNTS DATA: THE FUTURE OF BUSINESS SUPPLIER INNOVATION STUDY – APRIL 2022
On: While more than half of SMBs believe an all-in-one payment platform can save them time and improve cash flow visibility, 56% believe the solution could be difficult to integrate with AP systems and existing ARs. The Future Of Business Payables innovation report, a collaboration between PYMNTS and Plastiq, surveyed 500 SMBs with revenues between $500,000 and $100 million to explore how all-in-one solutions can exceed customer expectations. SMEs and help sustain their activities.