Startup Finiata, the finance platform targeting SMEs, freelancers, and the self-employed, has picked up $21 million of financing.
The round will help the startup execute its planned European expansion. Finiata Just one year old but already claims to have over 5,000 customers.
Finiata provides data-driven, automated micro-factoring services to European freelancers and SMEs.
The company, formerly known as Bezahlt, aims at the German ‘factoring’ market but has a specific focus on smaller companies, including one-person operators.
Finiata provides invoice factoring (or invoice financing) whereby companies secure credit by selling outstanding invoices to a third party at a discount. The idea is that they can free up working capital in the business to reinvest or simply in order to get paid more quickly.
Through its finance platform, the startup is trying to solve the problem of providing freelancers, small companies and startups, who are ignored by banks and other financial institutions, with fast, easy and cheap factoring.
Banks and other financial institutions that offer factoring services almost exclusively provide to large corporates and companies with minimum sales of 100,000 Euro.
Finiata developed a credit scoring system that mixes manual processes, traditional scoring algorithms and alternative data sources. This allows the company to provide financing to businesses that traditional refactoring providers typically don’t.
Finiata’s automation has the additional benefit where the company can provide a financing framework for all customers, which informs them of exactly how many invoices they can get pre-financed through the startup.
Finiata is founded by the minds behind credit scoring and loans company Kreditech.