GLI Finance to launch first French online working capital financing platform

13th Nov 2014 09:49

GLI Finance, a loan business quoted on AIM, has raised $22.5m of funds required for a 26.44% stake in new French financing platform Finexkap.Other investors in the platform include Finsight, a globally focused Fintech investment fund which includes partner, former chief operating officer and board member of LendingClub, John Donovan, as well as Fintech private investors and family offices.With an annual volume of receivables for French business-to-business companies exceeding $800bn in 2013, France constitutes one of the largest factoring markets in the world.Finexkap is the world's first French working capital financing platform to purchase small and medium sized enterprises' receivables on the web through refinancing vehicles managed by Finexkap AM. The platform provides a market-disruptive short-term funding solution to entrepreneurs needing fast access to financing.Finexkap will fully launch its financing activities in the fourth quarter of 2014. The Company will use $15 million of the total funds raised for its refinancing vehicle to fund the first batch of receivables.Geoff Miller, Chief Executive of GLI Finance, said: "Finexkap has developed a flexible way of financing working capital for SMEs in France by allowing small businesses to choose the invoices they wish to clear and get funded without any sort of commitment, in stark contrast to traditional banks in France which typically do not offer spot financing."With a huge demand for this type of flexible finance and innovative proprietary technology, the platform has huge growth potential and should be a great partner for GLI Finance."As of 10:13, GLI Finance's share price rose 0.70% to 58.53p per share.