In a bold move to enhance small business financing, London-based company SAPI has successfully raised $80 million to expand its payment-linked financing solutions. This significant funding will support the company’s goal of growing its operations in London and Hanoi. As part of the strategic expansion, SAPI recently established a new entity in Vietnam, marking a pivotal step in its global outreach efforts. The company sees this capital infusion as a vital resource to reach underserved small businesses that are often neglected by traditional financial institutions.
Since its inception, SAPI has focused on providing Liquidity-as-a-Service by working with various partners to deliver innovative financing solutions. Previously, the company has emphasized the integration with payment platforms to simplify access to capital. This recent development is consistent with their ongoing efforts to build a robust credit infrastructure that is directly linked to payment systems. By doing so, they seek to minimize administrative challenges for business owners, streamlining the repayment process through existing payment flows.
What Does SAPI Offer?
SAPI specializes in payment-linked financing, enabling businesses to repay loans directly from their card and account-to-account transactions. This approach is crafted to ensure repayments align with a company’s trading patterns, effectively alleviating cash flow challenges. By collaborating with payment service providers, marketplaces, and financial technology firms, SAPI offers a streamlined solution that integrates financing into the daily operations of its business clientele.
How Does This Benefit Small Businesses?
The extension of SAPI’s financing solutions stands to benefit small businesses, particularly those owned by immigrants and women. Reports indicate that these groups encompass 90 percent of SAPI’s loan book. Through strategic collaborations, SAPI makes capital access as seamless as processing a payment, giving entrepreneurs a significant advantage in managing their financial needs efficiently. Such a model is particularly beneficial for those who struggle to secure funds through conventional lenders.
Alexis van Lennep, co-founder and CCO of SAPI, emphasized this partnership model stating,
“By partnering with payment platforms, we can meet business customers where they already operate. Our aim is to make access to capital as straightforward as taking a payment.”
SAPI’s recent success is indicative of their commitment to adapting their services to meet the changing needs of small businesses.
With the freshly raised capital, SAPI is poised to scale its operations and extend its market reach. The company’s leadership is optimistic about the potential for growth, aiming to empower businesses with tools that directly address their financial gaps. Co-founder and CEO Mai Le commented,
“This funding round lets us scale payment-linked financing that repays at source and reaches more business owners who are too often overlooked by traditional lenders.”
The company is actively recruiting for various roles to support its expansion goals. With new opportunities emerging within SAPI, the company is keen on attracting talent that can drive its vision forward. As the fintech landscape continues to evolve, SAPI’s approach highlights the importance of flexible and accessible financial solutions for small business growth.
The integration of payment-linked financing has reshaped how businesses handle capital, placing SAPI in a strategic position in the fintech industry. Originally leveraging partnerships with payment platforms, SAPI’s model offers a distinct take on financing, focusing on underserved segments. Their growth trajectory suggests an increasing reliance on non-traditional financial models that directly link business transactions with loan repayments, providing an adaptable solution for many entrepreneurs.
