A London-based fintech has set out to provide $1 billion of cash advances to eCommerce merchants selling on Amazon and other online marketplaces.
Founded in 2018, Storfund offers an end-to-end solution for stabilising cash flow, providing entrepreneurs with the liquidity they need to naturally grow their business.
According to a recent survey 24 per cent of UK businesses report late payments as a threat to their survival, the highest reported level across Europe.
Storfund mitigates this risk by plugging in directly to the seller’s account and can be turned on and off at any time – providing funds for a small fee to cash-strapped businesses as and when they need it.
Former investment banker George Brintalos, who set up the firm in 2018 alongside Akbar Ahsan, explains: “Storfund bridges the gap between eCommerce and capital, which is under served by traditional banks which are either too rigid to adapt or are withdrawing from the SME sector.
“We are here to address the capital needs of this new category of entrepreneurs, providing them with the liquidity they need to naturally grow their business, without adding unnecessary debt on their balance sheet or diluting their share capital base.”
Following encouraging early growth, the eCommerce solution recently announced it has raised $36.5 million of capital through the Private Debt team of Swiss bank Union Bancaire Privée (UBP) and private investors.
Between December 2019 and December 2020 it saw a remarkable 1,200 per cent growth in the business, a trajectory it expects to maintain for the next two years as more people shop online.
This year, Storfund aims to provide $1 billion of cash advances to eCommerce merchants selling on Amazon and other European, American, and Asian marketplaces, alleviating the “pain of long payment terms” and providing “growth capital to eCommerce merchants,” according to Ahsan.
Related: Household savings rise by £20.9 billion despite historically low interest rates