Zvilo, a credit-led digital bank, has secured a debt facility of €50m from alternative asset management firm Fasanara Capital.
According to Fasanara, Zvilo – which is focused on the Balkans and emerging markets – will use this debt facility to rapidly scale and expand its provision of working capital for the over 800,000 SMEs situated in the Balkans.
Fasanara said this is vital, as 40% of SMEs in the Balkans sought loans to expand their operations even before the surge in energy costs.
However, high collateral requirements in the Balkans make financing inaccessible, particularly for SMEs.
Zvilo chairman Admir Imami said, “The heart of our business proposition is to dramatically transform the financial landscape of the SMEs in the Balkans by providing short term working capital facilities without the need of traditional collateral and paper trails that SMEs are currently subject to.
“We aim to offer bridge capital to those businesses seeking to finance trade flows originating in and from the Balkans; all automated through Zvilo’s proprietary platform, which combines scale and accessibility from the outset.”
“We are delighted to have secured this facility given it is a huge endorsement of our management and the willingness of the international investor community to back the team and invest in the Balkan market. Our accessible, seamless, and sustainable funding solution will help these SMEs with the liquidity required to reach their pre-Covid trading levels while also taking advantage of our digital financial product offering.”
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