In an exciting development in the financial world, Tradeplus24 AG (TP24), a Zurich-based FinTech SME lender, has successfully closed a groundbreaking debt financing round, raising CHF 400 million. The funding was secured from two esteemed financial institutions, Barclays Bank Plc and M&G Investments, and marks one of the largest fundraising initiatives in the global private debt market for alternative SME lenders and the fintech industry in 2023. In this comprehensive article, we delve into the details of TP24’s impressive feat and explore how this significant capital injection will enhance SME lending in the UK and the Netherlands, fostering accelerated growth and economic empowerment.
TP24’s Landmark Debt Financing Round
On July 19, 2023, TP24 proudly announced the successful completion of a substantial debt financing round, securing CHF 355 million from Barclays Bank Plc and CHF 45 million from M&G Investments. This multi-currency facility is set to be allocated across Australia, the UK, and the Netherlands, further solidifying TP24’s global presence. The forward-thinking team at TP24's visionary initiative demonstrates their dedication to providing cutting-edge lending solutions that are specifically suited to the needs of small and medium-sized enterprises (SMEs).A Pioneering Approach to SME Lending
Founded in 2016 and headquartered in Zurich, TP24 made its debut in the financial landscape two years later, offering revolving business credit to SMEs based on their outstanding invoices without taking over the debtor base. This unique asset-backed lending solution, known as CreditLine, enables SMEs to leverage their receivables as collateral, thus accessing affordable, flexible, and fast financing to fuel their growth. The credit is secured against a floating asset base, monitored daily through a proprietary automated process, and backed by an innovative insurance package, ensuring a seamless and secure lending experience.Strategic Expansion and Global Impact
TP24’s ambitious expansion strategy has seen the company venture into various international markets. Following a successful launch in Switzerland in 2018, TP24 expanded its operations to Australia in 2021 before expanding to the UK and the Netherlands in 2022. By establishing a strong presence in these regions, TP24 is well-positioned to support SMEs across diverse industries and economies, empowering businesses to overcome financial challenges and scale up successfully.Collaboration with Barclays and M&G: Enabling Entrepreneurial Success
The invaluable partnership with Barclays and M&G highlights the recognition of TP24’s unique business model, state-of-the-art technology, and dedication to fostering entrepreneurship within the SME ecosystem. The commitment from both financial institutions reinforces TP24’s mission to provide tailored, affordable, and convenient financial solutions to SMEs in need. This collaboration not only enhances TP24’s capacity to make a positive impact on the SME landscape but also exemplifies a collective effort to drive economic growth and prosperity.The Vision for the Future
With the secured capital, TP24 is poised to make a significant difference in the UK and the Netherlands, where SMEs face unprecedented challenges. The funding will enable TP24 to address issues such as the cost-of-living crisis, high interest rates, and cash flow constraints that impact SMEs’ operations. Armed with the backing of Barclays and M&G, TP24 is well-equipped to deliver incomparable financial solutions, revolutionizing the way businesses access capital and thrive in today’s dynamic market environment.
