UK fintech company Satago has secured £4.6mn in funding from ESF Capital, signalling the launch of Satago’s financing solution, which marries dynamic single-invoice financing with a free, online credit control platform for SMEs.
The financing comprises an initial £3mn credit line and an equity investment of £1.6mn, with further potential for additional equity and debt funding from ESF, an institutional P2P accelerator business.
Satago’s all-in-one cashflow solution is marketed as a more flexible and lower-cost alternative to traditional financing arrangements such as factoring. Its offering uses technology to give smaller companies the same level of credit control as major corporations. With more than 1,000 SMEs already signed up to its platform, the firm can currently finance up to £50,000 per client (including invoices as small as £500) and is predicting strong growth in the year ahead.
The total portion of debt (£3mn) from EFS Capital will be directly used to fund SMEs, GTR understands.
“Late payments are a perennial issue for SMEs, damaging their finances as a result. But with this support from ESF Capital, Satago has the firepower needed to finally put SMEs in full control,” says Steven Renwick, CEO and founder of Satago. “We’re the only finance company that actually tries to improve clients’ financial health before offering them finance, and we’re excited to now offer these capabilities to a much wider audience.”
John Mould, CEO of ESF Capital, comments on the deal: “Alternative finance is a rapidly growing sector, and Satago – boasting both the necessary technology and specialist expertise – will quickly become a key player in the sector’s progression. Satago is a clear complement to ESF’s broader business: particularly significant to SMEs seeking a range of finance options and investors looking to diversify their portfolios.”
Concurrent with the investment from ESF, Satago raised a further £550,000, including follow-on participation from previous investors.