Berlin fintech business Tilta received a €30 million loan facility from Fasanara Capital. It plans to use the financing arrangement to bridge B2B working capital gaps.
The fintech company can finance €250 million in B2B transactions annually with the debt facility.
Tilta looks forward to helping customers and sellers get paid immediately and risk-free.
“We are thrilled to partner with Fasanara to provide access to a previously inaccessible asset class of short-term, small ticket, and highly liquid B2B receivables,” says Tilta co-founder Christoph Nicola
Fasanara Capital CEO Francesco Filia says, “In today’s challenging macroeconomic environment, in-context financing solutions that can support the transition of B2B transactions from offline to online and solve the inherent working capital gap are essential”.
Filia says Fasanara is impressed with the Tilta Team’s tech-driven white-label approach to embedded credit risk assessment and business transaction financing and advancement.
“We are happy to partner with them in closing the working capital gap for SMEs in online business transactions,” he says.
The firm raised €4M in startup funding in May 2023.
The €1.1T European B2B market is currently too unrefined for such markets. Businesses and clients still transact via phone, fax, or sales meetings. These behaviors squander money and time.
Rising interest rates and inflation exacerbate these difficulties. This causes additional payment delays and longer durations.
As operating cash flows dwindled, banks curtailed credit to European SMEs.
“With 1 in 4 businesses closing due to liquidity constraints, the working capital gap remains the biggest challenge for European SMEs,” Nicola explains.
Tilta helps B2B and SME marketplaces. Credit-backed payment infrastructure is Tilta’s solution. The technology lets B2B merchants and marketplaces offer in-context purchase financing.
Transaction process features include legislative framework, money access, seamless working technology, and risk hedging.
Businesses ordering online can have clear individual credit lines with the infrastructure. The infrastructure allows installment payments over 30, 60, or 90 days.
Tilta’s white-label solution covers transaction aspects with one API integration.
The marketplace vendors receive their risk-free sales revenues immediately.
Customers get more value from marketplaces. Marketplaces can expand their revenue streams by selling financial services.