The majority of businesses will require access to quick and flexible funding to assist them in achieving their objectives, whether they are looking to grow, purchase stock, or invest in marketing. Traditional high street banks have decreased their exposure to small business financing for many years, which is where Liberis comes in.
Rob talks to Business Matters about his journey.
Which goods and services do you offer?
Through collaborations with companies like Klarna, Tide, and Barclaycard, we offer revenue-based financing to small and medium-sized businesses. Through an API, our embedded finance solution seamlessly integrates into the ecosystem of our partners to provide SMEs with financing that is white-labeled with their branding. We can target and pre-approve a significant portion of small businesses for the funding they require before they even apply by using the data made available through our partners. By eliminating the hassle of the application process with our quick and effective 2-click method, the business can return to what really matters: expanding their business.
Which kinds of companies do you work with?
Through collaborations with banks, online marketplaces, software providers (ISVs), and acquirers, we work with small and medium-sized businesses that are primarily direct-to-consumer focused and come from a variety of industries. More than 930 million SMEs employ over 300 million people worldwide, and they are responsible for more than 60% of the world’s GDP. They play a significant role in advancing innovation, fostering job growth, and generating income both domestically and internationally.
Due to the $5 trillion funding gap and the high street banks’ reluctance to fund small businesses, small businesses are looking for alternative means of obtaining the money they require to expand and thrive. Businesses can apply for financing in just a few minutes with the help of our creative revenue-based funding solutions, and frequently receive funding the very same day! According to our research, companies that receive funding expand up to 50% faster than their rivals and have a 20% higher chance of surviving over the course of three years. There is a significant difference here.
What issue does your business address?
Small businesses can’t grow without the funding they require, and our economy can’t either without them. We wish to correct that. We can pre-approve many small businesses for funding as they need it by using data wisely and having insights up front, giving them more opportunities. This calls for quick, one-button access to these resources rather than time-consuming application processes, ambiguous underwriting timelines, and a wait for funds.
What sets you apart?
We have more than 7 years of data and over 45,000 historical transactions, which distinguishes us from competitors in our market and enables us to provide pre-approved revenue-based finance to small businesses worldwide through our partners. We can target them at the right time with a brand they already know and trust when we use data to show that a business is already eligible for funding. The following main concerns that small business owners have when looking for financing are all but dispelled by this quick and effective 2-click application process:
- Fear of being turned down is unfounded because they are pre-approved before they even apply and can access financing when the opportunity arises.
- Fast financing – by completing the application in just 3 minutes, it eliminates the need for protracted wait times, the need to provide numerous supporting documents, and the need to repeatedly check on timeframes over the phone.
- Trusted finance – Because we provide funding through partners that our customers already know and trust, Liberis puts businesses at ease.
- How can you be sure that the team you assemble embodies the principles of your business?
One of the foundational elements of our People strategy is luring extraordinary talent to Liberis. Because we are aware that hiring is a two-way process, we incorporate our values into the selection process in order to identify candidates who will be successful and happy at Liberis and who will prioritize serving our partners and customers. When looking for a new job, candidates should be fully informed about the following important topics, among others:
- Our Culture: We always put our customers at the center of what we do and are collaborative, open, informal, and flexible.
- Career advancement – the chances for our employees to advance and grow Leadership – who is in charge and their traits
- Company growth: Our history, our achievements, and our potential for further expansion
- Are you willing to provide a post-covid that combines home and office work?
Yes! Due to the pandemic, employee expectations have changed, and we have modified our working procedures to reflect this. We must take into account the unique circumstances of each employee as an inclusive, international company. Depending on the type of work, we have a mix of hybrid and home-based positions. In order to establish the proper connections, utilize the time to strategize, and engage in fruitful collaboration, we encourage all of our employees to visit their neighborhood office. Meeting in person occasionally is necessary to support our belief in the value of teamwork and commitment to a learning culture.
Do you have any advice for effectively managing clients and partners?
You should always try to keep your business, financial, and customer goals in line with those of your partners. The partnership should supplement the expertise that each party would find challenging to acquire or incorporate into their own businesses. Alliances are more likely to succeed where internal corporate cultures and business practices are similar because strong partnerships also need to align on how to treat their end customers.
The customer is always right, they say. It is true, though. It is crucial to treat customers fairly, never deceive them, and make sure they are satisfied with the service you are offering. Having said that, it’s crucial to act responsibly as a lender. If a business cannot afford to pay back the loan, finance providers have a duty to refuse them financing.
Finally, in order to preserve customer loyalty and lifetime value, it’s critical to handle customer issues or complaints in a timely and effective manner. By incorporating elements like reviews into your customer journey, you validate your company in the eyes of potential clients and demonstrate how highly they value you.
Any financial or cash-flow advice for newly launched businesses?
Every cent matters! Small businesses should always try to negotiate with their finance providers for the best and most affordable funding options that fit with their overall business plans.
Additionally, they ought to look for ways to give suppliers longer payment terms and negotiate early payment discounts. If you pay two weeks in advance, even a 1 percent discount results in a 26 percent annualized rate savings!
Additionally, companies should utilize government taxes and subsidies. They can offer small businesses things like Start-Up loans, tax grants, and R&D subsidies, all of which can significantly improve a start-up company’s cash flow.
What one change would you like to see the government make for businesses if you could?
If the government mandated 30-day payment terms for all invoices and payments, especially from larger, more cash-rich companies, it would be beneficial for small businesses. Most large businesses extend their payment terms to their suppliers by 90 or even 120 days, which causes serious cash flow problems for small business owners without enough working capital. Making 30 days necessary would be a step in the right direction, as would the addition of 6 percent mandatory compound interest after that.
What perspective do you have on your rivals?
Businesses operating in the same neighborhood should always show consideration for one another. It’s critical to keep in mind that your competitors are working diligently and strategically to succeed their business.
Don’t criticize them in public! Though technological innovation can advance quickly, you might eventually find yourself working for the rivals even though you may be in a winning position over them at one point.
You will prevail in all the appropriate battles if you concentrate on your priorities and product enhancements, release the best product onto the market.
Any thoughts on your business’s future plans and aspirations?
Liberis is experiencing tremendously exciting growth centered around three strategic priorities as we scale up quickly. As a company, our goal is to close the $5 trillion funding gap that exists for SMEs globally each year. To do this, we must be exceptional at providing financing for small businesses. For small businesses, revenue-based financing works incredibly well. We are introducing a number of new products to cater to the diverse financial needs of our customers in order to support continued growth.
Second, we are concentrating on international growth. We have established a strong network of international partners with access to businesses seeking financing all over the world. We travel with our partners to places where they have strategic value.
In the coming years, we plan to support more than 100,000 businesses, protecting tens of thousands of small business jobs, and boosting local economies. This is only possible if we keep hiring exceptional talent who shares our purpose and is committed to our vision. The talented team we have assembled is committed, motivated, and passionate about our strategy of fostering the growth of small businesses by providing them with critical funding. To continue hiring and keeping great employees while assisting them in further developing their abilities and experience at Liberis, we must continue to hire great people.
