Lloyds Bank has partnered with startup Satago to help its SME customers get access to cash against invoices due.
Lloyds has invested £5 million in the London FinTech in exchange for a 20% equity stake as it seeks to transform access to short-term finance for its business customers across the UK.
The London firm is a cash management platform that provides automated credit control, risk management and invoice finance to SMEs and accountants.
“Our partnership with Satago goes beyond a supplier-buyer relationship,” said Gwynne Master, MD of working capital at Lloyds Bank Commercial Banking.
“The equity stake we have taken in the business underscores our commitment to deliver best-in-class, future-focused solutions for UK businesses by partnering with a market-leading provider with proven capability.
“Our new platform enhances both the choices and the speed at which finance solutions will be offered to small- and medium-sized businesses.
“Most important, the solution gives more businesses better control of their cashflow. Businesses are now able to focus on running their day-to-day business and grow, rather than chase payments.”
Lloyds’ commercial customers will benefit from real-time insights into which companies pay their invoices on time, and a suite of tools including automated invoices, reminders, payment requests and integrated credit reporting to help them track their finances and outstanding payments.
Sinead McHale, CEO of Satago, added: “The last two years have been hugely difficult for businesses everywhere to navigate. Across the country we’ve seen countless examples of SMEs that have had to innovate and pivot quickly to maintain their critical role in the economy, all while chasing late payments and challenging debts.
“That’s why we are extremely excited to partner with Lloyds Banking Group to bring invoice financing into the 21st Century. It’s a market that has changed very little in decades, so we’re delighted that Lloyds shares our vision to make it available to all UK businesses regardless of size or sector.
“Lloyds’ investment in our company is testament to the ability of our intelligent technology, and our innovative use of data, to put SMEs across the UK back in control of their own finances and bounce back stronger.”
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