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Lithuanian-based fintech startup SME Finance raises €80 million in funding, the largest European Investment Bank financing awarded to a fintech lender

November 12, 2020

SME Finance, a Lithuanian-based fintech startup and leading fintech platform for non-banking financing in the Baltic states, today announced it has received €80 million in back from the European Investment Bank (EIB) to support small and medium-sized Lithuanian, Latvian, and Estonian enterprises in the transport, retail, wholesale, production, and services sectors. The investment is the largest EIB investment awarded to a fintech lender.

The first wave of funding from the EIB is expected to reach businesses by the first half of 2021. SME Finance plans to offer business financing with 4 to 8 percent annual interest rates. The maximum factoring limit granted to individual enterprises will be capped at EUR 5 million.

SME Finance was founded in 2016 to address an identified funding gap in the financing of working capital for SMEs and midcaps. Since its establishment, the company has financed invoices worth more than 459 MEUR, has provided financing services to 500 clients, and has raised more than 114 MEUR from local and international investors. SME Finance now has 80 MEUR of available capital and provides short and long-term loans, factoring, and leasing. The startup has partnerships with world-leading providers of trade-related insurance solutions, including Euler Hermes and Coface.…

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Italian challenger bank Aidexa raises €45 million

November 10, 2020

Aidexa, an Italian challenger bank for SMEs, has raised €45 million in seed financing.

Founded by Roberto Nicastro, former general manager of Unicredit, Aidexa intends to use a combination of AI and Open Banking to target the seven million businesses in Italy with a turnover of less than €10 million.

The startup, which plans to recruit approximately 100 staff in the coming months has set a goal of breaking even within three years and landing 100,000 customers in five. 

Aidexa currently operates as credit institution, offering loans and investment-related services, but expects to obtain a full banking licence in 2021. 

The €45 million in seed funding was raised from the Generali Group, Banca Sella, IFIS, and from VCs, family offices, trade associations and angel investors.…

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Accusations against Payvision: Supporting fraud and massive money laundering

November 6, 2020

As is known, our German-speaking colleagues already had their reservations about the state of affairs at Wirecard in Germany in 2016. Elfriede Sixt of EFRI (European Funds Recovery Initiative) from Vienna now states that the Netherlands has its own Wirecard with Payvision. This is not good news for ING. When ING bought a significant portion of the Payvison shares in the spring of 2018, the fraud investigation by the Public Prosecution Service against ING Bank was still ongoing. In the same spring of 2018, there was apparently a difference of opinion within the Public Prosecution Service about that case. In the meantime, the Hague Court of Appeal has still not ruled on the case requesting criminal proceedings against former ING CEO, Mr. Ralph Hamers. In February 2020 it was announced that Hamers could start working at UBS. We hereby publish the article written by Elfriede Sixt in English. It is clear that this type of large-scale fraud makes the role of gatekeepers extra important. The question is therefore: are money laundering and terrorist financing reports being made and by whom?

The operating companies (merchants) of the fraud online trading scams have been shell companies, mostly British, with nominee directors and nominee shareholders.…

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The changing face of retail post COVID-19

November 3, 2020

For years now, brick-and-mortar stores have been faced with the challenge of competing with online competitors that may be offering a broader range or cheaper products. The result, says Paulette Rowe, CEO, integrated & eCommerce solutions at Paysafe, has been a decline of footfall on the high street.

So creating a customer experience in-store has been key to survival, and many businesses have invested heavily into this concept to stop the eCommerce takeover.

Before the COVID-19 outbreak, there was a very clear strategy for delivering a superior in-store experience. This focused on attracting customers into the store, and creating experiences that engaged with them on both a physical and emotional level that online retailers could not compete with. Tactics to achieve this included personalised shopping assistance, free testers, in-store only offers, or even culinary treats.

However, the pandemic has decimated this strategy, because today the opposite must be the primary concern. In the main, consumers are still rightly wary of the dangers of indoor interactions, so with government rules on the number of visitors in a store at one time, one-way systems in place, and health concerns at the forefront of shoppers’ minds, making the shopping experience safe and frictionless as possible is now key to the future of in-store.…

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