BPRI and fintech Silvr want to fund digital companies based on their future income

Having grown up in the United States, the Revenue Based Financing (RBF)Income-based financing, on its way to settling in France. The RBF is an alternative to the traditional financing methods offered by the traditional banking players. To date, companies seeking financing can either take out a bank loan or an honorary loan, receive a grant, or raise equity funds. “We’ve seen a lot of digital companies struggle to fund themselves. They are often refused a bank loan, and investment capital is often reserved for big fish” Explains Nima Karimi, CEO of Silver. “The Revenue-based financing is a complementary solution to these financing methods.”

Silver, RBF leader

Silver? The fintech company, which has just raised 130 million euros, is the first French startup to be launched in this field from 2020. It is now supporting More than 200 digital entrepreneurs (SaaS, e-commerce, app, marketplaceAnd the etc…) Thanks to an algorithm that is able to predict the future income of its customers. “We connect all company data: Google Analytics, e-commerce CMS, aggregators, bank accounts, but also advertising agencies such as Google Ads or Facebook Ads” Explains Naama Karimi.

The algorithm relies on artificial intelligence to analyze the current situation of the company, infer its future income and assign a score to it. The result obtained allows Silvr to determine whether the company is bankable or not: the financing decision process is therefore automated.

Thus Silvr enables its clients to receive between 10 thousand and 10 million euros within 24 hours. “On average, the first funding is 300,000 euros“This money allows them, for example, to fund their stock, digital marketing campaigns, or pre-fund monthly subscriptions to SaaS platforms. It is also undiluted: the company can therefore retain all of its capital.

Revenue-based financing is still a very new method of financing: “When we started in 2020, the market was nascent in the US and non-existent in Europe. Today, it thrives in the United States and is emerging in Europe.” Analyzes Naama Karimi.

An unprecedented partnership between the Bank and Silvr

In March, Banque Populaire Preves de Paris and Silver signed a business provider agreement. “The goal is simple: to offer our customers the Silvr offer so they can take advantage of it.” Sophie Magni, Director of Innovative Business Marketplace explains.

Several reasons prompted the Bank to initiate this partnership: “We want to continue to provide the best solutions to our customers. This partnership allows us to enrich our offer with a complementary solution, based on a predictive model that allows our clients to test and finance their own economic model.” Adds Pierre Tastet, deputy general manager of Banque Populaire Reeves de Paris.

A partnership that has many benefits for the bank’s technology client companies. First, the possibility of financing very quickly within 24 hours. This funding is renewable, to support businesses whenever they need it. “On average, we refinance our clients every three to four months to accommodate their growthNaama Karimi says.

To benefit from this funding, however, two eligibility criteria must be met. Silvr’s algorithm needs data to be able to make its predictions. It is therefore essential that the company has been around for at least one year and has already registered €100,000 in sales.

Banking and FinTech: Competitors or Allies?

Fintech companies are start-ups that are changing the rules of banking and finance. As such, they are often seen as rivals to historical players. However, the reality is more accurate, as evidenced by the partnership launched between Banque Populaire Reeves de Paris and Silver.

Fintech companies are a source of competition and integrationexplains Pierre Tastet. On the other hand, competition stimulates our ability to innovate. On the other hand, some startups, like Silvr, are ahead in their field. So it makes sense for us to rely on their technology so we don’t fall behind in providing solutions to our customers.A vision shared by Naama Karimi, head of fintech:We do not consider ourselves competitors to banks. On the contrary, we suggest to companies an offer that is added to the offer of the banks“.

Besides our clear complementarity in terms of funding, we had an excellent connection with Nyma and Gregory, founders of Silvr. This relationship contributed greatly to the establishment of our partnershipSays Pierre Tastet. With this partnership, which is a first for Silvr, the banking leader above all wants to support innovation. “It is important for the Banque Populaire in the Paris countryside to surround itself with local actors to contribute to the development of our lands and the actors in it.Sophie Magney concludes.

Madness, Media Partner of Banque Populaire

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