TP24, a fintech provider of flexible revolving business credit, has raised £345m in debt funding from UK parties Barclays Bank Plc (“Barclays”) and M&G Investments.
The amount of £240m will be used for lending to SMEs in the UK and the Netherlands. Barclays is providing up to £200m in warehouse financing, while M&G is providing up to £40m in mezzanine funding.
TP24 provides SMEs with flexible revolving business credit based on their outstanding invoices, without taking over the debtor base. In addition to the amount of £200m for the UK and the Netherlands, an amount of up to £105 million has also been made available by Barclays for lending by TP24 in Australia.
Gordon Beck, European Head of Corporate & Sustainable Securitisation at Barclays, said: “Barclays is pleased to support TP24 on its mission to provide innovative lending solutions to SMEs across the UK, the Netherlands and Australia. 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.”
Alexis Dussault, ABS Portfolio Manager of M&G, said: “We are pleased to close this funding round with TP24. The product they offer to SMEs in the Netherlands and the UK will help them access affordable, flexible and fast financing to grow and support their business in a challenging environment. M&G is proud to contribute to the financing of the local and wider economy and to fund innovation with TP24’s outstanding team.”
Niels Turfboer, Managing Director of TP24 in the UK and the Netherlands, commented: “We are pleased and proud to announce these agreements today. The support from established parties like Barclays and M&G confirms the strength of our innovative product and the talent of our team and gives us the opportunity to grow further.”
Positive impact for UK SMEs
TP24 was launched in Switzerland in 2018 and in recent years opened branches in Australia (2019), the UK (2021) and the Netherlands (2022).
“With the committed capital from Barclays and M&G, we can really make a difference for UK SMEs.” says Niels Turfboer. “Small and medium sized businesses across Britain are facing unprecedented challenges that are impacting cash flow – from the cost-of-living crisis and soaring energy bills to high interest rates.
TP24 has created a valuable service that can help overcome these pressures by providing the capital that companies need to manage their operation costs and to scale up successfully. With over 5 million SMEs in the UK, these businesses are the backbone of the economy, and in the coming years, we will do everything we can to help as many SME entrepreneurs as possible realise their ambitions, and thus give the UK economy an extra boost.”
Unique proposition
UK SMEs looking for financing for further growth can turn to TP24 for flexible revolving loans from £250,000 to £5,000,000. The prerequisite is that they are based in the UK, have been operational for at least three years, and have a debtor base of more than £350,000. Unlike factoring, TP24 does not take over outstanding invoices.
TP24’s flexible revolving credit is a unique proposition for medium-sized SME entrepreneurs looking for working capital, filling the gap between the offer from banks and existing alternative financiers. Using innovative technology, customers are helped quickly and efficiently at an attractive rate, while remaining in control of their debtors.
