The Stockholm-based fintech company Invoier continues to challenge established factoring suppliers and is now launching the first, green factoring service. Green Factoring ™ wants to be able to match investors’ earmarked capital with the growth needs of small and medium-sized companies (SMEs), something that has so far only been available to large companies in practice. By demonstrating efforts for a positive climate impact, SMEs can now, for the first time, have the opportunity for even more affordable financing.
Earmarked, green capital from investors usually comes with lower return requirements and is thus more financially advantageous for the receiving company. In practice, however, green capital is limited to larger companies that already have their own resources to invest in deeper analyzes or employ specific resources in sustainability for the same purpose. Thus, green capital today is usually limited to large companies, with a focus on listed ones.
Considering that 99.9% of Swedish companies consist of SMEs and at the same time it is they who create 4 out of 5 new jobs, it feels unfair that they would not have the same opportunities for good financing.Fredrik Mistander, CEO & Co-Founder Invoier
The new Green Factoring service is aimed directly at small and medium-sized companies in the financial area of invoice trading, which is used to optimize liquidity flows and create conditions for growth. Companies can qualify directly by demonstrating their climate impact or get indications of further efforts they may need to make to gain access to the cheaper, green capital.
We want to reward the companies that are already working for sustainability and encourage those who have not really taken the step yet but want to start their journey. Our piece of the puzzle is to solve the financing at a lower price for them, Fredrik continues.