SmartFunding nabs $490,000 for invoice financing

Singapore-based invoice financing firm SmartFunding has raised $490,000 in a seed funding round.

The capital comes from ASX-listed internet group Fatfish’s fintech venture building arm FinTech Asia Group and Australian investor Investorlend.

The company operates what it calls peer-to-business invoice financing by connecting SMEs that want to sell their unpaid invoices to improve cashflow with investors who can make a return by purchasing these future cash flows.

As well as connecting SMEs and investors SmartFunding assess each party’s credit, provides legal assistance and facilitates transactions and fund distributions

It says it will also step in to resolve any bad debts that do occur through the service.

SmartFunding claims that investments through the platform generate returns of between 1.7% and 2.5% a month or 20% to 30% a year.

Company CEO Sandra Ernst said, “At SmartFunding, we want Singapore’s SMEs to benefit from a flexible way to improve their cash flow.

“We look forward to working closely with our invoice sellers and investors to ensure that our platform is aligned with the interests of both parties, where risks are credibly managed and transparency is upheld.”

The company will also use the capital to add more fintech services to its platform.

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