TP24 bags $386m funding from Barclays Bank and M&G Investments

By Gloria Mathias

TP24, a FinTech provider of flexible revolving business credit, has raised £345 million ($386 million) in debt funding from UK parties Barclays Bank and M&G Investments.

The amount of £240 million will be used for lending to SMEs in the UK and the Netherlands. Barclays provides up to £200 million in warehouse financing, while M&G provides up to £40 million in mezzanine funding.

The FinTech firm provides SMEs with flexible revolving business credit based on their outstanding invoices without taking over the debtor base. In addition to the amount of £200 million for the UK and the Netherlands, an amount of up to £105 million has also been made available by Barclays for lending by TP24 in Australia.

Gordon Beck, European Head of Corporate & Sustainable Securitisation at Barclays said, “Barclays is pleased to support TP24 on its mission to provide innovative lending solutions to SMEs across the UK, the Netherlands and Australia. Progressive SME lending is critical to the health and success of many businesses, and TP24’s solutions are tailored, affordable, and convenient.”

Alexis Dussault, ABS Portfolio Manager of M&G said, “We are pleased to close this funding round with TP24. The product they offer to SMEs in the Netherlands and the UK will help them access affordable, flexible, and fast financing to grow and support their business in a challenging environment. M&G is proud to contribute to financing the local and wider economy and fund innovation with TP24’s outstanding team.”

Niels Turfboer, Managing Director of TP24 in the UK and the Netherlands shared, “With the committed capital from Barclays and M&G, we can really make a difference for UK SMEs. Small and medium-sized businesses across Britain are facing unprecedented challenges that are impacting cash flow – from the cost-of-living crisis and soaring energy bills to high-interest rates. TP24 has created a valuable service that can help overcome these pressures by providing the capital that companies need to manage their operation costs and scale up successfully.

TP24’s flexible revolving credit is a unique proposition for medium-sized SME entrepreneurs looking for working capital, filling the gap between the offer from banks and existing alternative financiers.