SME Finance is a Lithuanian EU-wide fintech marketplace offering SMEs a range of financing options, including traditional business loans, revenue-based financing and embedded finance solutions. The platform has facilitated more than €1.3 billion in loan volume and invoice financing for over 2,500 growing businesses. It uses machine learning, open banking, AI and automation across loan decisioning, financing and customer onboarding to shorten and simplify the lending process. SME Finance has operated a three-year partnership with Fasanara Capital and recently secured an additional credit line from them. The company says the new facility will help grow its geographical scope of operations and support the next wave of entrepreneurs across Europe. Its stated mission is to be the number one banking and finance partner for SMEs in Europe. SME Finance, founded in 2016 in Lithuania, is the largest non-bank financing technology platform in the Baltic States and has provided financing totalling €770 million. It operates a single ecosystem together with the digital neobank SME Bank and together manages a €160 million funding portfolio. The platform’s core products include business loans, factoring, leasing, credit lines and day-to-day banking services; the funding portfolio is 75% business loans (€120M), 18% factoring (€28M) and 7% leasing (€12M). More than 2,000 companies use the SME Finance ecosystem, with nearly 90% of funding allocated to micro (44%) and small and medium-sized enterprises (45%), and sector exposure led by traders (34.3%), manufacturing (24.8%) and services (14.2%). The company’s loan portfolio grew 70% this year from €94 million to €160 million, and management plans to grow it to €200 million following the new investment; SME Bank has also attracted €20 million in deposits from abroad. SME Finance intends to expand its ecosystem and new borrowing and fund-management services into other European markets including Finland, Poland, Germany and Spain, and to use automation and AI tools to accelerate delivery of financing solutions. SME Finance is a Vilnius, Lithuania-based lender that operates a fintech platform for non-banking financing across the Baltic states. Its core product is a self-service factoring platform that provides working capital financing to SMEs and midcaps. The company said it will use the European Investment Bank funding to meet enterprises' working capital needs through that platform. SME Finance also plans to open a neobank for business clients, targeted to be operational by mid-2021. CEO Mindaugas Mikalajūnas described the EIB partnership as timely given reduced bank lending and cash-flow shortages among regional SMEs. The first wave of funding from the EIB is expected to reach businesses by the first half of 2021.

Total raised

$345M

Funding rounds

3

Latest round

Debt Financing

Latest activity

Apr 2023