Invoice financing provider Stenn is facing legal action from HSBC, which has filed an application in the UK High Court to place the company into administration.

Court records show that on December 2, HSBC Innovation Bank filed two administration applications against Stenn Assets UK, which Stenn’s corporate filings say acts as a “discrete funding vehicle” within its group-wide “managed marketplace” model.

It has also filed an application against Stenn International, which is the managing agent of Stenn Assets as well as servicer and origination agent for invoices it finances.

Stenn declined to comment, though a spokesperson told startup-focused publication Sifted the company is “actively defending” the action and attributes it to “sudden action by an investor”.

A spokesperson for HSBC tells GTR: “We do not comment on client relationships, even to confirm or deny that a relationship exists.”

Since being founded in 2015, Stenn has typically catered to smaller firms that may otherwise struggle to secure trade finance.

It says it has provided over US$18bn in invoice and revenue-based finance solutions to SMEs and large corporates in dozens of markets globally, and has offices in London, New York and Atlanta.

Companies House records show the group made US$28.4mn losses in FY23, up from US$8.1mn the year before, while also recording a 5% drop in revenue.

Companies House filings also show HSBC Innovation Bank acts as security agent on a revolving credit facility (RCF) that Stenn Assets UK signed in November 2022, originally valued at US$25mn.

Stenn initially signed the RCF agreement with Silicon Valley Bank (SVB) UK, which later collapsed and was acquired by HSBC for £1.

Stenn has previously secured significant investments from banks such as Barclays and Natixis to drive liquidity into the SME market.

Crayhill Capital Management has been another active backer, approving US$200mn in funding for a programme rolled out by Stenn in the initial months of the Covid-19 pandemic.