Florida FinTech Fidelity National Information Services (FIS) is partnering with London FinTech Liberis, to offer small to medium-sized businesses (SMBs) an alternative funding source, FIS announced in a press release Wednesday (Jan. 29).
FIS merchants in the U.S. can get loan approvals in minutes through its Worldpay Working Capital solution, which initially rolled out in March 2019. Powered through Liberis, the solution has so far loaned in excess of $20 million to U.S. SMBs.
“SMBs are often so busy running their shops that the traditional bank loan process takes too much time,” said Nicole Jass, senior vice president of product, Worldpay Merchant Solutions, FIS. “Working Capital makes it faster and easier for businesses to get access to the cash they need while allowing them to pay the funds as a percentage of their daily card transactions.”
A 2019 Strawhecker Group study indicated that only about 27 percent of SMB loan applications are funded by traditional lenders, according to the release.
Worldpay and Liberis partnered in 2016 to launch Worldpay Business Finance in the U.K. With the introduction of Working Capital, U.S. SMBs can get loans to advance their businesses.
“Liberis’ mission is to reshape small business finance for good,” said Howard Kramen, general manager, U.S., Liberis Group. “With the joint expertise and support from global FinTech leader FIS, we will be able to provide the working capital that SMBs need to compete in today’s hypercompetitive market.”
Earlier this month, Liberis raised 32 million pounds ($42 million) in institutional equity funding. The round was led by investment firm FTV Capital. The funds will be used to support its growth, expand further into Europe and the U.S., and expand its workforce by 30 percent.
Liberis has raised more than 150 million pounds ($195 million) in debt and equity funding to date. The company said it has given more than 15,000 SMBs upwards of 450 million pounds ($586 million) in funding since 2017.