European lending platform TP24 has received a mezzanine funding facility from Channel Capital Advisors.
With the funds, TP24 hopes to free up equity capital to fuel its business growth and drive global expansion plans.
Mezzanine funding includes a mixture of debt and equity financing, which gives the lender the right to convert the debt to an equity interest in the company in case of default.
Based in Switzerland, European lending platform TP24 is a data-driven working capital provider for SMEs. It offers quick and flexible credit lines between £250,000 and £5m. Loans are based on accounts receivables so they can better match a company’s specific requirements and capabilities.
To alleviate manual oversight, TP24 helps set up the credit facility and automatically renews the contract after a standard yearly revision. All the borrower needs to do is provide TP24 with a weekly update about the account receivables, either through a link or manually through the dashboard.
TP24 co-founder and managing director Matthias Kribbel said, “Our receivables-backed financing solution not only provides mid-sized businesses with much needed liquidity, it also enables them to become more independent from banks.
“At the same time, our significantly over-collateralized security structure and a unique insurance wrapper provide our debt investors with a much-increased level of security compared to many alternative lenders in the market.”
Channel, which is an FCA-regulated alternative investment manager (AIFM) focused on FinTech, has deployed over $9bn of assets across FinTech lending and working capital finance.
The firm recently launched its $300m Specialist Fintech Lending Strategy, which is focused on deploying more mezzanine investments in the sector.
Last week, fellow working capital lender KLYM raised $27m in funding. The company offers a data-driven solution that enables real-time financial services, including working capital credit lines.
This investment was led by JP Morgan and the International Finance Corporation.
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