The London-based and industry-leading embedded business platform Liberis is today announcing that it has entered into a partnership with Barclaycard to offer its small business customers access to personalised revenue-based finance. This announcement follows Barclays’ investment of £34.5M in Liberis finalised in Q4 of 2021 and will integrate the Barclaycard Business Cash Advance service with Liberis’ Cash Advance service.
The Merchant Advance program and its teaming up with Liberis
Merchant Cash Advances are a type of business finance where lenders purchase a percentage of a merchant’s future card takings. This is usually at a fixed cost and is often viewed by businesses as a more favourable source of finance as opposed to conventional bank loans.
The Barclaycard Business Cash Advance is a brand-new solution that is designed to assist small businesses by providing the funding needed to scale their operations. Cash Advance is an alternative finance product offered by Liberis, where it advances a sum of money to eligible merchants, expecting it to be repaid with interest. The advantage to merchants is the fixed cost financing with flexible repayment terms which allows them to access the funds they require when they’re needed.
By teaming up with Barclaycard, Liberis will better provide personalised business finance to their small business customers. The financing will help Liberis to further develop its API driven embedded finance platform as well as deliver innovative new products and solutions for its small business customers. Liberis also hopes to expand its international presence, having already integrated its platform with over a dozen global strategic partners in 8 countries including the UK, USA, Ireland, Denmark, Sweden, Finland, Slovakia and the Czech Republic.
It remains necessary to provide innovative financing solutions for small businesses, as highlighted by Barclaycard Payments’ CEO Rob Cameron, “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 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.”
Since its founding in 2007 by Charles Mindenhall & Paul Mildenstein, Liberis has helped over 10,000 small businesses globally access over £300M in funding, supporting 82,000 jobs in the process. The company is now led by Rob Straathof who steers it with the same aim since its inception: to deliver finance solutions directly to small businesses and providing a scalable finance platform for partners to assist them in building more valuable relationships with their small business customers
The fintech not only brags backing from Barclays but also other investors including the UK-based venture builder Blenheim Chalcot and US-based growth equity investor FTV Capital.