UK alternative finance provider Liberis has formed a deal with Barclaycard to offer revenue-based financing to the acquirer's small business customers.
Operating under the name Barclaycard Business Cash Advance, the product offers fixed cost financing with flexible repayment terms. Cash Advance is an alternative finance product where Liberis advances a sum of money to eligible merchants on the grounds that they will pay back the sum plus a pre-agreed fee.
The arrangement between Barclaycard and Liberis follows a £35.4 million investment by Barclays in the company in Q4 2021. Other investors in Liberis are UK based venture builder Blenheim Chalcot and US based growth investor FTV Capital.
Rob Cameron, CEO of Barclaycard Payments, says: “Small businesses underpin the UK economy and it’s critical that they have quick and easy access to the flexible finance products they need to support their growth. Having a bit of extra breathing room with repayments through Barclaycard Business Cash Advance will give many SMEs the confidence they need to invest in growing their business. We’re looking forward to continuing to work closely with Liberis to enhance our innovative suite of products.”
Liberis has integrated its platform with over a dozen global strategic partners in eight countries including the UK, USA, Ireland, Sweden, Finland, Denmark, Slovakia, and Czech Republic, and is looking to expand further into Europe.
With direct reach to more than 1 million small businesses, Liberis has provided nearly $1 bn of funding in over 45,000 transactions.
Rob Straathof, CEO of Liberis, comments: “We are very excited to launch our finance partnership with Barclaycard to provide personalised business finance to their small business customers. This investment is a testament to our leadership position in embedded business finance and shows how banks and fintechs can create vital partnerships to help even more small businesses obtain the funding they need to grow."