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Around a third of the $585 million will go towards growing the Australian SME lending business, the chief executive of the fintech lender has said.
Receivables-backed SME lending fintech TP24 has said it will allocate $100 million of the $585 million it has secured as part of a global debt deal with Barclays Bank to grow the Australian SME lending business, with a further $100 million available should growth require it.
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The non-bank lender – which is headquartered in Zurich but has offices in Melbourne (as well as in Amsterdam and London) – has welcomed the new funding deal with the UK bank, with the CEO of TP24 telling The Adviser that the company aims to utilise around a third of the funding ($100 million initially, with a further $100 million available) to help support more Aussie businesses grow, export, and create jobs.
The remaining $385 million has been allocated across the UK and The Netherlands ($585 million total).
Founded in 2021 under the name Tradeplus24, TP24 provides SMEs with revolving lines of credit of between $200,000 and $5 million, calculated against the value of their receivables. To date, it has provided over $88 million in capital to SMEs with an annual turnover of $1 million to $50 million and now has in excess of $250 million in funding capacity.
It is currently on the panel of Australian Finance Group (AFG) and works with brokers to distribute its working capital products to support businesses in a range of industries, including critical infrastructure, wholesale trade, export, manufacturing, and software.
Speaking to The Adviser, CEO Adam Lane said the funding boost means TP24 has “the ability to scale to help as many Aussie SMEs with their working capital as possible”.
“That’s why I’m here and that’s why we’re here; to help a lot more customers achieve their financial success,” Mr Lane said.
He added that TP24 was particularly popular with brokers looking to support export businesses as it “will comfortably fund overseas receivables as comfortably as domestic receivables” and because it has “built a product that is fair and transparent” and “doesn’t operate from a position of control over those customers”.
Mr Lane said the Barclays deal was “a big deal” for TP24 both globally and locally, adding that he believed it gave the lender “the endorsement and credibility to be able to be a scaled player in this market, which is something [TP24 is] really passionate about achieving”.
The TP24 CEO concluded: “Our customers are our reason for being, and with this round of funding we can bring global best practices to Australian businesses at a significantly larger scale, which is especially important in the current environment.
“In Australia, with so few banks and very little innovation from non-bank lenders in SME finance, Aussie businesses are left with very few options. This is not the case overseas, where the SME lending market has matured considerably, and businesses are given a much fairer go to succeed and thrive.
“Having the backing of a global player like Barclays is testament to our unique ability to scale and provide a meaningful, globally relevant, and fair service to Australian SMEs, which we know are the backbone of Australia’s economy.”
Gordon Beck, director of securitised products at Barclays, said: “Barclays is pleased to support TP24 on its mission to provide innovative lending solutions to SMEs across Australia, the UK, and the Netherlands. Progressive SME lending is critical to the health and success of many businesses, and TP24’s solutions are tailored, affordable, and convenient. Barclays is proud to be partnering with TP24 as it leads this innovation on a global stage.”
The Barclays deal was arranged by Australian debt advisory firm Neu Capital.
Edward Jones, managing director of Neu Capital, commented: “The global financing provided by Barclays allows TP24 flexibility and capacity to grow its newly-established UK and Dutch subsidiaries, as well as ramp up growth in the Australian market without compromising on cost or flexibility.
“This will also provide Barclays with exposure to the growing Australian non-bank lending market, with the Australian arm of the global TP24 financing showcasing Barclays’ global expertise and commitment to accelerate its growth strategy in Australia.”
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