Credit Service Launches a 500 Million Vehicle Over Three Years to Finance SMEs

Credit Service SpA, an Italian fintech company based in Venice and specialized in Invoice Management services for companies, and Banca Valsabbina, a historic bank in the Brescia area with over 70 branches in Northern Italy, have launched a securitization vehicle (SPV) with the aim of financing the trade receivables of small and medium-sized companies. The development plan shared with the investor has as its first objective to get to finance trade receivables for 500 million euros over the next three years. The company had closed in June 2019 an equity crowdfunding campaign on the Fundera platform.

Founded in 2014, Credit Service SpA has developed MyCreditService, a platform that integrates credit analysis tools based on machine learning, with Supply Chain Finance solutions that allow to finance and optimize the management of industrial supply chains thanks to an internal rating algorithm able to return an always updated situation on the trend of working capital.

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The Invoice Be-Tech vehicle will initially be fully financed by Banca Valsabbina

Currently, thanks to the securitization operation called Invoice Be- Tech, the MyCreditService platform will allow the SPV to purchase without recourse the trade receivables offered for sale by companies that in this way will have access to an alternative finance formula outside the banking channels. In fact, the vehicle will buy from the platform in an automatic and completely digital way on the basis of an algorithm able to evaluate, assign a price and identify the maximum exposure on each customer in real-time and without any external intervention.

“By now, the trend we are observing is that of an increasingly close collaboration between fintech and traditional finance – underlines Credit Service President Enzo Sisti -, which means combining the innovation potential of digital with the funding capacity of banks and credit institutions, which maintain privileged access to the capital market. This is an indispensable collaboration to respond to the increasingly articulated needs of companies, which compete in global markets and need increasingly advanced tools in ever shorter time frames.”

“With this operation, we are putting in place an alternative and/or complementary tool to finance the working capital of SMEs and, therefore, the economy of our territories – explains Hermes Bianchetti, Head of the Business Division of Banca Valsabbina -. In recent months we have supported Credit Service in the development of the project, believing strongly in the synergies between traditional finance and new technologies, with the aim of continuing to offer additional tools to companies to finance their growth and ensure their competitiveness in the market. The platform My Credit Service allows to streamline and optimize the process of managing trade receivables and now companies can discount these credits obtaining liquidity in an innovative and digitized way, using a form of finance complementary to the traditional one. We can therefore offer the market and our customers a new fintech service that allows us to stand out.”

The Invoice Be-Tech vehicle will initially be fully financed by Banca Valsabbina, sponsor and arranger of the operation, but it will soon be open to further institutional subscribers, who will thus have the opportunity to invest in a financial instrument intended entirely to support the growth of the local economy.

According to the research on Alternative Finance for SMEs in Italy, carried out by Polimi’s Entrepreneurship Finance & Innovation Observatories in November 2021, Italian Invoice Trading platforms have mobilized € 1.24 billion for SMEs in the last 12 months (€ 712.2 million in the second half of 2020 and € 531.6 million in the first half of 2021). The increase is 7.5% compared to last year. The trend of technological integration between platforms and ERP systems offered by large software houses also continued. As of June 30, 2021, there were 12 operators in Italy active in Invoice Trading, including MyCreditService.

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(Featured image by stevepb via Pixabay)

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