Amsterdam, Netherlands, 6 June: Sprinque, the flexible payments platform for local and cross-border B2B transactions, has secured a debt facility of €20M from Avellinia Capital. The funds will go towards supporting B2B e-commerce merchants, from across Europe, who sell on a Pay-by-Invoice basis to business buyers. The €20M will allow Sprinque to finance approximately €200M in transactions per year.
For their merchant financing services, Sprinque built a dedicated Special Purpose Vehicle structure with Collections Foundations. This structure is the first building block for a pan-European financing network that will support B2B merchants across all European countries in the near future.
The first few months of 2023 saw the European economy experiencing slow growth across multiple markets. Retail and e-commerce have experienced the effects of the current macroeconomic climate first-hand, resulting in businesses and merchants needing to explore alternative options to support financial stability. To mitigate looming financial pressures for business buyers, particularly for SMEs, making the option available to either Pay-by-Invoice or Pay-in-Installment is critical.
“In light of the economic situation, the Senior Loan Facility further extends our support to B2B e-commerce merchants across Europe. In addition, Sprinque's financing vehicle, combined with this facility, creates a solid foundation to continue expansions across Europe and in our core merchant markets of Germany, Spain, and the Netherlands.” - Bas Kentie, Head of Legal and Compliance.
Historically, the process of applying for Pay-by-Invoice services has not been very accommodating towards businesses, especially when considering time sensitivity. Taking this into account, Sprinque handles applications online and in real-time to create fast and friendly buyer purchasing experiences. Not to mention, Sprinque takes on all default risks for approved transactions.
Sprinque's comprehensive Pay-by-Invoice solution aims to help businesses mitigate the effects of economic pressures. The debt facility offers more liquidity to current and future B2B merchants who sell on Pay-by-Invoice with net payment terms of 7, 15, 30, 45, 60, or 90 days, as well as alternative options for Pay-in-Installments.
The flexibility offered by Sprinque also allows merchants the option to share, or pass on, Pay-by-Invoice related fees to business buyers for extended net payment terms. Next to this, merchants can decide on an invoice level when they would like to be paid, so they can optimize their working capital and related costs.
With a current acceptance rate of 90%+, Sprinque aims to keep Pay-by-Invoice systems as frictionless as possible by handling the process from end-to-end on behalf of merchants - starting from onboarding and verifying the business buyer, setting and managing the credit limit for approved business buyers, settling the transaction with the merchant in their preferred currency, and collecting the invoice payment from the business buyer once the invoice falls due. This makes it easier for merchants to cater for international transactions, in their currency of choice.
“Avellinia Capital is delighted to provide a flexible multi-jurisdiction and multi-currency financing line to Sprinque, supporting them in their quest to provide online point-of-sale working capital solutions. We have been very impressed with the Sprinque team and their progress thus far and look forward to embarking on this journey together." - Christoph Pfundstein, Partner at Avellinia Capital.
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Sprinque is Europe's most flexible B2B payments platform on a mission to help B2B businesses grow safely in a digital world. Sprinque enables B2B merchants and B2B marketplaces to extend payment terms to their customers, with the option for them to pay 15 - 90 days later, without taking on additional risk or operational overhead.
Sprinque was founded in the spring of 2021 in Amsterdam by Manoj Tutika (CTO), Mark Holleman (CPO), and Juan Espinosa (CEO). Before founding Sprinque, Tutika was a founding engineer at several VC-funded startups, most recently at AI-startup, Netradyne. Espinosa led the go-to-market strategy at MessageBird, which this year exceeded a valuation of a billion euros. Holleman most recently developed Buy Now, Pay Later and other payment solutions for the leading B2B marketplace in Europe while at Arvato Financial Solutions (Riverty).
About Avellinia Capital
Avellinia Capital is a private credit investment manager providing tailor-made and flexible asset-based financing solutions to fast-growing specialty lenders and specialty finance originators. Our capital is used to finance assets and predictable revenue streams more efficiently. We apply a diligent investment process built on our ability to source compelling opportunities, a highly data-driven quantitative analysis and qualitative assessment, as well as our deep structuring expertise and experience. All loans are secured and backed by financial or other assets.